1.2.1. Recognizing Value and Appropriateness of AI/ML
First Principle: AI/ML is most valuable for problems that involve prediction, pattern recognition, or automation at a scale or complexity that is beyond human capability. It is not appropriate for tasks requiring 100% deterministic, rule-based outcomes.
Before starting an AI project, you must determine if it's the right tool for the job.
AI/ML provides value by:
- Assisting Human Decision Making: Flagging suspicious transactions for a fraud analyst to review.
- Solution Scalability: Categorizing millions of products on an e-commerce site, a task too large for a manual team.
- Automation: Automating repetitive tasks like reading data from forms.
- Personalization: Providing unique recommendations to millions of users.
AI/ML is NOT appropriate when:
- A simple, deterministic outcome is needed: If
A + B
must always equalC
, you use traditional code, not a predictive model. - There is no data: ML models cannot learn without data.
- The cost-benefit analysis is negative: The cost of developing and maintaining the model outweighs the business value it provides.
- The problem is not well-defined: You cannot build a model to predict an outcome if that outcome is not clearly defined and measurable.
Scenario: A manager suggests two projects: 1) An AI to calculate sales tax on an invoice. 2) An AI to predict which sales leads are most likely to close.
Reflection Question: Why is the first project a poor use of AI, while the second is an excellent one? Use the principles of determinism vs. prediction in your answer.
š” Tip: Ask: "Is this a problem of calculation or prediction?" Calculation problems are for traditional software. Prediction problems are for AI/ML.