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6.2. Quick Reference

Solution-type selection
NeedBest fit
Fixed, auditable logic with identical results for identical inputsRule-based automation
Forecast, score, or classification from structured historyPredictive ML (custom on Amazon SageMaker AI, or a product)
Draft, summarize, converse, extract meaning from documentsGenerative AI (Amazon Bedrock, or an application like Amazon Quick)
Answers grounded in current company documents, with citationsRAG (Amazon Bedrock Knowledge Bases)
Multi-step tasks that take actions across business systemsAI agent with permissions, limits, and escalation (Amazon Bedrock AgentCore)
Consistent specialized style, format, or task behavior after prompting falls shortFine-tuning
Problem caused by process design, policy, or missing dataNot AI first: fix the process or data

Generative AI adaptation ladder (cheapest first): prompt engineering → RAG (knowledge gap) → fine-tuning (behavior gap) → continued pre-training or custom model (only where the model is the differentiator).

AWS services and tools at a business level
ItemWhat it is forPricing pattern
Amazon QuickAI-assisted BI, research, and automation for business usersSeat-based (per user)
Amazon BedrockBuild generative AI apps on foundation models; Knowledge Bases, Guardrails, Evaluations, AgentCoreConsumption-based (tokens); batch discounts; Provisioned Throughput (hourly capacity)
Amazon SageMaker AIBuild, train, deploy custom MLInstance-based (compute hours); Savings Plans for steady use
AWS MarketplaceBuy third-party models, AI products, and data with AWS billingVaries by product
AWS Pricing CalculatorEstimate costs before deploymentFree tool
AWS Cost ExplorerAnalyze actual costs after deploymentFree tool
AWS CAF / CAF-AIOrganizational readiness across Business, People, Governance, Platform, Security, OperationsFramework
Shared responsibility modelAWS secures the cloud; customer owns data, access, configuration, use case, outputsModel
Strategy and value
  • Build-buy-partner factors: budget, timelines, capabilities, vendor proposals, regulatory compliance. Buy commodity; build differentiation you can sustain; partner for speed or expertise.
  • Prioritization criteria: business value, feasibility, sustainability, strategic alignment. Verdicts: scale, pause, terminate.
  • Transition considerations: business continuity, cost implications, data readiness, performance impact.
  • Measurement order: define KPIs → capture baseline → deploy → track leading indicators → report ROI with full cost.
  • ROI = (total benefits − total costs) ÷ total costs; include data, integration, change management, governance, and operations costs.
  • Durable advantage: proprietary data, data flywheels, workflow integration, organizational capability. Not: model access.
Governance and risk
  • Responsible AI dimensions (AWS): fairness, explainability, privacy and security, safety, controllability, veracity and robustness, governance, transparency.
  • Governance by design: start at use-case intake with an impact assessment and risk classification.
  • Oversight scales with impact and reversibility: human-in-the-loop for high-impact decisions; guardrails plus escalation criteria everywhere.
  • EU AI Act tiers: unacceptable (prohibited), high (strict obligations), limited (transparency), minimal (no specific obligations).
  • NIST AI RMF functions: Govern, Map, Measure, Manage.
  • ISO/IEC 42001: certifiable AI management system. ISO/IEC 23053: framework describing ML-based AI systems. ISO/IEC 22989: AI concepts and terminology.
  • Bias can enter at every lifecycle stage and drift over time; monitor continuously.
  • Hallucination mitigations: RAG grounding, citations, contextual grounding checks, evaluation sets, human review for high stakes.
Readiness and transformation
  • Readiness dimensions: leadership alignment, data quality, cultural preparedness, technical infrastructure, governance frameworks.
  • Capability gap categories: people, process, technology, governance.
  • Shadow AI control: classify tools (approved, under evaluation, blocked), fast intake, sanctioned alternatives, enforcement.
  • Communication topics: implementation timelines, outcome expectations, effects on roles.
  • Workforce development: POC programs, hackathons, training programs, responsible AI training (continuous and role-based).
  • Exam transformation phases: envision, experiment, launch, scale.
  • CoE models: centralized → hub-and-spoke → federated as maturity grows.
Alvin Varughese
Written byAlvin Varughese
Founder•20 professional certifications