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CSEET · Economic and Business Environment · AI and Business Environment

A Mumbai-based retail chain uses software that studies past purchase records of customers and suggests products each shopper is likely to buy next. Which business function is this AI application primarily supporting?

This is a marketing and personalised customer engagement application. The AI analyses past purchase data to predict what each shopper may want and recommends products, which raises sales and customer satisfaction, rather than supporting audit, security or payroll functions.

  1. AMarketing and personalised customer engagementCorrect
  2. BStatutory audit of financial statements
  3. CPhysical security of the warehouse
  4. DPayroll tax computation

Explanation

Recommendation engines analyse customer behaviour to tailor offers, which is a marketing and customer engagement use of AI. The other options describe functions unrelated to purchase-based product suggestions.

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