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AIB-C01/Topic 01

AWS / Business

AI Literacy and Choosing a Solution Type

2 min read5 recall promptsReviewed 2026-10-10

Memory hook: Rules repeat instructions; ML learns patterns; agents take actions.

Must remember

Traditional rules execute explicit logic and may be best when decisions are stable and explainable rules are available. Supervised ML learns from labeled examples; unsupervised methods discover structure; reinforcement learning optimizes behavior through rewards. Generative AI produces content from learned patterns. An agent can choose tools/actions toward a goal, increasing both usefulness and control requirements.

Choose the approach from the problem: prediction/classification, anomaly detection, recommendations, extraction, generation or workflow assistance. A deterministic calculation does not need a language model. A high-stakes decision may need a human review boundary even when automation is technically possible.

Foundation models support many tasks but have limitations: incorrect answers, bias, sensitivity to instructions and bounded context. Tokens are processing units and influence capacity/cost; embeddings represent similarity for retrieval, not proof of truth. Prompting supplies instructions, retrieval adds external context and tuning adapts supported behavior. Training a model from scratch usually needs substantially more data, expertise and investment.

Evaluate build, buy and adapt choices across differentiation, time, data control, integration, cost and skills. A prebuilt solution may be appropriate for a common workflow; proprietary requirements may justify customization. Avoid confusing a convincing demonstration with reliable behavior on representative unseen work.

Choose under exam pressure

Requirement Choice and reason
Stable arithmetic/business rule Conventional software or rules.
Predict a labeled business outcome Suitable supervised ML.
Draft an answer using current private knowledge Authorized retrieval plus generation and evaluation.

Traps

  • Generative AI is not automatically the best tool for every automation.
  • A larger model is not guaranteed to meet the business requirement better.

Active recall

1. What distinguishes an agent?

It can select and execute actions/tools toward a goal.

2. What do embeddings represent?

A learned numerical representation useful for similarity and other tasks.

3. Prompting versus retrieval?

Instructions versus supplying relevant external context.

4. Why use a non-AI baseline?

To establish whether AI adds enough value to justify complexity and risk.

5. Why test unseen examples?

To estimate performance beyond the demonstration or training cases.

Sources

CLOSE THE NOTES. EXPLAIN THE CHOICE.

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