AIF-C01 - Fundamentals of AI and ML - Section 1.2

Identify practical use cases for AI.

Recognise where AI adds value (forecasting, anomaly detection, personalisation, content generation) and where simpler rules or analytics are the better fit. Match a business problem to an appropriate AI capability.

Use case selectionWhen not to use ML

Practice question for this objective

Free sampleFundamentals of AI and MLeasy

An online grocery retailer is reviewing a list of candidate projects and wants to commit only to those where machine learning would add genuine value over hand-written rules or basic reporting. Which TWO of the following tasks are well suited to a machine learning approach? Select TWO.

  • ACalculating each order's delivery fee from a published table that maps postcode bands to fixed charges set by management.
  • BSuggesting the next products an individual shopper is most likely to buy, drawn from years of varied browsing and purchase history. Correct
  • CRounding every basket total to two decimal places before the payment gateway processes the charge to the customer.
  • DSending an automatic email when a delivery is marked complete, using a fixed template the marketing team approved.
  • EForecasting demand for perishable stock next week from several years of sales, seasonality, and weather signals. Correct
Recognise that machine learning fits tasks with complex, data-rich patterns such as personalisation and forecasting, not tasks solved by exact rules. Machine learning earns its place when outcomes depend on intricate patterns learned from large, varied historical data that no fixed rule can express. Recommending products per shopper and forecasting perishable demand both rely on such patterns, while lookup tables, rounding, and template emails have single correct outputs that deterministic logic handles exactly.

Why A is wrong: A fixed lookup table gives one exact charge per band, so a deterministic rule is correct and cheaper; ML would add risk without benefit here.

Why B is correct: Personalisation learns each shopper's patterns from rich behavioural history, a relationship too complex and shifting for hand-written rules to capture.

Why C is wrong: Rounding is a precise arithmetic operation with one defined answer, so a simple formula is exact and ML offers nothing useful.

Why D is wrong: A status change triggering a fixed template is straightforward event-driven logic; there is no pattern to learn, so ML is unnecessary.

Why E is correct: Demand forecasting models nonlinear patterns across many noisy historical signals, which is exactly where ML outperforms fixed thresholds or averages.

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