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CSEET · Economic and Business Environment · AI and Business Environment

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

The application supports marketing and sales personalisation. Recommendation systems analyse customers' past purchases to predict preferences and suggest relevant products, which raises conversion and loyalty. It is not an audit, security or payroll tool, since those functions serve different purposes.

  1. AMarketing and sales personalisationCorrect
  2. BStatutory audit of accounts
  3. CPhysical security of warehouses
  4. DPayroll tax computation

Explanation

Recommendation engines learn from past purchase behaviour to suggest relevant products, which is a personalisation tool used in marketing and sales. Audit, warehouse security and payroll tax are different functions and are not the main purpose of such software.

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