An autopoietic network is described. The network system has distributed artificial intelligence and may be used to supply high volume, high speed, multi media, telesthesia, telemetry, telekinesis, telepresence, telemanagement, telecommunications and data processing services. The invention is implemented by means of a non-hierarchical network having a fractal structure. That is, the system is structured as a network of networks that may individually display self-similar characteristics at all levels of aggregation at which they are considered. The system and its constituent networks are structurally coupled with their environment through hermeneutic processes. These processes are not based on, and do not use, a priori representations of their environment or of the networks themselves. The system includes a number of cybernetic devices which are adapted to function as both the infrastructure of the network and the means by which the network services are delivered to network users. These cybernetic devices communicate with other cybernetic devices in such a manner so that the network is in the form of a fractal, non-hierarchical mesh which is self-similar. The cybernetic devices may be particularly adapted to supervise or "mind" one or more other cybernetic devices functioning at a lower level of aggregation or complexity. The supervised cybernetic devices may be clustered or distributed in space and be associated with machines, systems or people. The functionality provided by the network includes provision of communications for data, voice, videophoney, video-on-demand, entertainment, security, educational services, health care, premises management, energy supply and management, banking and similar purposes.