and included in the simulation to verify the belief that its effect is negligible. More simulation runs on a wide variety of images would better determine the interaction of image parameters with hologram performance. Optical processors will provide low cost and high speed pattern recognition for specific tasks.68 It must be noted, however, that Vander Lugt-type optical pattern recognizers are very limited in their application. The correlation process is hard-wired into the optical computer and the pattern recognition algorithm cannot be modified. This is in contrast to the slower digital processors which are software-controlled to perform a wide variety of image functions. The Vander Lugt correlator will fill a near-term need for a cheap processor of moderate performance in a controlled environment. This works well for machine vision application where the in-class and out- of-class patterns are well known. Performance of such a hard-wired system drops when the target is in a hostile environment. The next generation of optical processors must be able to adapt and learn. Such a device must support a wide variety of algorithms at a speed compatible with the application. Future research in this area should address the need for optical processors which not only perform Fourier transforms and correlation, but many other functions as well. This could be accomplished using real-time spatial light modulators as holographic elements. The hologram might perform as a holographic lens for Fourier transforming or it might perform a coordinate transform depending on the command of a digital, high level, image understanding algorithm. Such a flexible processor should prove successful for the next generation of pattern or target recognizers.