Differences Between AI, Automation, and Analytics CAIPM Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A retail company currently uses a rule-based system to automatically approve purchase orders under $5,000 and route larger orders to a manager. The company now wants to reduce manual review time for orders between $5,000 and $20,000 by learning from past approval decisions and flagging orders that are likely to be rejected. Which approach should the company adopt?

   • AUse analytics to generate a monthly report of approval rates and manually review all orders above $5,000.
   • BReplace the rule-based system with a machine learning model that predicts approval likelihood for all orders.
   • CKeep the rule-based system for orders under $5,000 and add a machine learning model to score orders between $5,000 and $20,000.
   • DExpand the rule-based system to include additional business rules for orders up to $20,000.
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2. 12foundation · easy

   Which combination best illustrates the complementary roles of AI, automation, and analytics in a customer service process?

   • AAnalytics identifies common customer issues, AI recommends solutions, and automation sends responses
   • BAutomation identifies issues, analytics recommends solutions, and AI sends responses
   • CAnalytics, AI, and automation each work independently without any interaction
   • DAI identifies issues, automation recommends solutions, and analytics sends responses
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4. 13foundation · easy

   How does AI differ from automation in terms of functionality?

   • AAI and automation are identical in functionality
   • BAI analyzes historical data, while automation predicts future outcomes
   • CAI can learn and adapt, while automation executes predefined rules
   • DAI follows fixed rules, while automation learns from data
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5. 14application · medium

   An e-commerce company wants to personalize product recommendations for each customer. They have data on past purchases, browsing history, and customer demographics. They also want to automatically update the recommendations daily and provide marketing teams with a report on which recommendation strategies are most effective. Which combination of technologies should they use?

   • AAnalytics to segment customers and automation to send the same recommendations to each segment.
   • BA machine learning model to generate personalized recommendations and automation to update them daily.
   • CAnalytics to create a one-time report of popular products and manually update the website.
   • DAutomation to send all customers the same weekly newsletter with best sellers.
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6. 15foundation · easy

   Which of the following best describes artificial intelligence (AI)?

   • AA system that executes repetitive tasks automatically without any human intervention
   • BTechnology that enables machines to perform tasks that typically require human intelligence, such as learning, reasoning, and perception
   • CThe use of statistical methods to summarize historical data and identify trends
   • DA set of algorithms that follow predefined rules to process data and produce outputs
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