This workshop brought together some 20 researchers -- with varying backgrounds in Artificial Intelligence, Machine Learning, Logic Programming and Philosophy -- to discuss the relations and differences between abductive and inductive reasoning as perceived in each of those disciplines. As this workshop was the first in its kind, and also because of the widely different backgrounds of the participants, the main emphasis lay on identifying and clarifying the main issues in the debate, rather than on trying to reach a general consensus on the issues raised. In order to stimulate the exchange of ideas and viewpoints, ample time was devoted to plenary discussions, some of which continued until days after the workshop in impromptu bi- and multilateral meetings. More specifically, the purpose of the workshop was to address the following two central questions: (i) how are the two forms of reasoning different (if indeed they can be distinguished) and (ii) how can they be integrated together in an Artificial Intelligence enviroment? The workshop was therefore structured around two panel discussions, one on each of these central issues, together with an invited talk for each session. In each of the panel discussions four of the submitted papers were briefly presented by their authors raising problems and questions for the subsequent discussion.