  We develop a game theoretical model of $N$ heterogeneous interacting agents
called the intelligent minority game. The ``intelligent'' agents play the basic
minority game and depending on their performances, generate new strategies
using the one-point genetic crossover mechanism. The performances change
dramatically and the game moves rapidly to an efficient state (fluctuations in
the number of agents performing a particular action, characterized by
$\sigma^2$, reaches a low value). There is no ``phase transition'' when we vary
$\sigma^2/N$ with $2^M/N$, where $M$ is the ``memory''of an agent.
