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AIB-C01 · Domain 1: AI Fundamentals and Literacy · 24% of the exam

Task 1.2: Identify and select appropriate AI solution types.

When a fixed rule beats a model, what makes an AI agent different from other AI tools, why every model needs monitoring after launch, and how a clear approved, blocked and under-evaluation list keeps shadow AI in check.

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Sample questions

Try each one before opening the answer. Every option is explained, with the AWS documentation page that proves it.

Question 1 · choose 1

An online retailer charges shipping from a published rate card: a fee by weight band and destination zone, plus a fixed surcharge for oversized items. The card changes twice a year and every result must be exactly reproducible for customer disputes. A product manager proposes using a generative AI model to calculate shipping fees at checkout. What should the business leader recommend?

  1. AFine-tune a model on past orders to learn the rate card
  2. BImplement the rate card as rule-based logic in the checkout software
  3. CUse a generative AI model and place the rate card in the prompt
  4. DTrain a machine learning regression model on historical shipping fees
Show the answer and why
  • AFine-tune a model on past orders to learn the rate card

    Incorrect

    Fine-tuning adapts a model's behavior from examples, but the output is still probabilistic. It adds cost and the risk of a wrong fee for a calculation that a few rules perform exactly.

  • BImplement the rate card as rule-based logic in the checkout software

    Correct

    The problem can be written down as a clear and compact set of rules, and the business needs exact, reproducible results. AWS guidance is to consider a non-AI solution whenever such rules exist.

  • CUse a generative AI model and place the rate card in the prompt

    Incorrect

    Supplying the table in the prompt helps a model use it, but the model still generates its answer probabilistically, so an exact, auditable fee is not assured.

  • DTrain a machine learning regression model on historical shipping fees

    Incorrect

    Machine learning suits relationships too complex to write as rules. Here the relationship is already known exactly, so a model would only approximate it.

Choose AI when it provides clear, substantial benefits over competing solutions, not because it is possible to apply. A published rate card is a compact rule set with a requirement for exact repeatability, which is exactly where traditional software beats a model.

Question 2 · choose 1

A utility company processes supplier invoices through fixed steps: receive the file, extract fields, check them against the purchase order, and post approved invoices to the ledger. Only one step needs judgment: deciding whether an unusual invoice is simple or needs a specialist. The CFO wants AI for that step but insists every other step stay predictable and auditable. Which design should the team choose?

  1. AKeep the fixed workflow and use a model only to classify and route at the judgment step
  2. BGive an autonomous agent the goal "process invoices" and let it plan every step and choose its tools
  3. CReplace the workflow with a multi-agent system in which agents negotiate each invoice's handling
  4. DKeep the whole process manual, because any use of AI makes the ledger unauditable
Show the answer and why
  • AKeep the fixed workflow and use a model only to classify and route at the judgment step

    Correct

    An LLM-augmented workflow keeps code paths deterministic and uses a model only for the decision that needs it. AWS advises raising a system's agency only when the task complexity requires it.

  • BGive an autonomous agent the goal "process invoices" and let it plan every step and choose its tools

    Incorrect

    A fully autonomous agent decides its own steps in a reasoning loop, which gives up the predictability the CFO requires for steps that are already fixed.

  • CReplace the workflow with a multi-agent system in which agents negotiate each invoice's handling

    Incorrect

    A multi-agent system coordinates several agents that each reason and act. It adds autonomy and coordination overhead to a process whose steps are already known in advance.

  • DKeep the whole process manual, because any use of AI makes the ledger unauditable

    Incorrect

    Using a model for one bounded classification does not make the rest of the workflow unauditable; the deterministic steps and the posting logic stay as they are.

Agency exists on a spectrum, from deterministic workflows with one LLM-assisted decision to agents that plan and act on their own. Match the level of autonomy to the complexity of the task: here only one step needs judgment, so an LLM-augmented workflow adds AI where it helps and keeps the rest predictable.

Question 3 · choose 1

A parcel carrier's model that predicts delivery times has been in production for a year. Each retraining run costs about $40,000 in compute and analyst time. Last year, accuracy held steady for seven months, then fell sharply within two weeks after a large customer changed its shipping patterns, and the carrier paid service credits for missed delivery promises until the model was retrained. The product owner must set next year's retraining policy and budget. Which policy should she choose?

  1. ARetrain every week on the latest data, so that the model is never more than a week out of date
  2. BRetrain only when customer complaints and service credits show that the predictions have gone wrong
  3. CAgree on accuracy thresholds tied to delivery promises, track them, and fund a retraining when one is breached
  4. DRetrain once a year after the annual data close, when a full year of new records is available
Show the answer and why
  • ARetrain every week on the latest data, so that the model is never more than a week out of date

    Incorrect

    Retraining on a fixed schedule regardless of performance is an AWS-listed anti-pattern. With months of stable accuracy, most of roughly two million dollars a year would buy retraining that changes nothing.

  • BRetrain only when customer complaints and service credits show that the predictions have gone wrong

    Incorrect

    This waits for the model to fail before acting, which AWS warns against. Complaints and credits arrive after the losses they report.

  • CAgree on accuracy thresholds tied to delivery promises, track them, and fund a retraining when one is breached

    Correct

    AWS recommends setting minimum acceptable performance with business stakeholders, monitoring the model in production and retraining only when performance falls below those levels, which keeps quality without paying for unneeded runs.

  • DRetrain once a year after the annual data close, when a full year of new records is available

    Incorrect

    A yearly run is still a fixed schedule that ignores performance. A drop as fast as last year's would leave the model degraded for months before the next run.

Models drift as the world they predict changes, so they need updates after launch, but updates cost money. Tying retraining to agreed performance thresholds spends the budget when the model actually degrades, and catches a sudden drop before it turns into months of broken promises.

Question 4 · choose 1

A law firm's partners banned all generative AI tools a year ago. A security review now finds that many associates paste client documents into free consumer chat apps on their phones to draft summaries. The managing partner wants to cut this risk without stopping the productivity gains the associates clearly value. Which approach should the firm take?

  1. AProvide approved AI tools and monitor AI use to detect unapproved tools
  2. BReinforce the ban with a firm-wide memo and disciplinary consequences for violations
  3. CBlock consumer AI websites on the firm's network
  4. DAllow any AI tool but require associates to remove client names before pasting
Show the answer and why
  • AProvide approved AI tools and monitor AI use to detect unapproved tools

    Correct

    AWS's security guidance on shadow AI is a dual approach: provide sanctioned tooling, which reduces shadow use and improves visibility, and build observability, including endpoint monitoring for unauthorized tools.

  • BReinforce the ban with a firm-wide memo and disciplinary consequences for violations

    Incorrect

    Outright bans and slow adoption are what drive employees to consumer tools in the first place. A stricter ban keeps the demand and the hidden use.

  • CBlock consumer AI websites on the firm's network

    Incorrect

    Network blocks do not reach personal phones, and without an approved alternative the demand simply moves elsewhere.

  • DAllow any AI tool but require associates to remove client names before pasting

    Incorrect

    Manual redaction is error-prone, and documents still leave the firm's control for services whose data handling the firm has not reviewed.

Shadow AI grows when people see value and have no sanctioned way to get it. Giving them approved tools brings usage into view and under policy, and observability catches what still slips through. Prohibition alone drives the risk underground.

Question 5 · choose 2

A travel company's leadership is comparing its current generative AI chat assistant, which answers questions from its training and the company's FAQ, with a proposed AI agent for customer rebooking. Which capabilities distinguish the agent from the chat assistant? (Choose TWO.)

  1. AIt produces fluent, natural-language replies that sound like a member of staff
  2. BIt decides on its own which steps to take toward its goal
  3. CIt answers from knowledge learned in pretraining
  4. DIt follows a fixed decision tree that the contact center team wrote and maintains
  5. EIt calls external tools, such as a booking API, to take actions
Show the answer and why
  • AIt produces fluent, natural-language replies that sound like a member of staff

    Incorrect

    Fluent language generation is a capability of the underlying foundation model that the existing chat assistant already has, so it does not distinguish the agent.

  • BIt decides on its own which steps to take toward its goal

    Correct

    Autonomy is the foundation of agent behavior: an agent chooses the next appropriate action toward its goal instead of following a fixed script.

  • CIt answers from knowledge learned in pretraining

    Incorrect

    Answering from pretrained knowledge is what the existing assistant already does; it involves no planning and no action.

  • DIt follows a fixed decision tree that the contact center team wrote and maintains

    Incorrect

    A fixed decision tree is scripted automation. Agents are defined by choosing their own actions toward a goal rather than following a predetermined script.

  • EIt calls external tools, such as a booking API, to take actions

    Correct

    Tool use extends an agent from understanding language to performing actions, such as checking availability and changing a booking.

An AI agent perceives its environment, reasons about a goal and acts: it plans its own next steps and uses tools such as APIs to change things in the world. A chat assistant generates answers but takes no action, so the jump to an agent brings both new value and new risks to manage.

Question 6 · choose 1

A manufacturer publishes an internal list that classifies every AI tool as approved, blocked or under evaluation. Engineers request a new code assistant. Security has reviewed it, but legal has not finished checking its license terms for code ownership. How should the AI governance lead list the tool while legal finishes?

  1. AAs approved, because the security review is complete and found no issues
  2. BAs blocked until legal approves, without listing it on the internal page
  3. CLeave it off the list, which covers production tools only
  4. DAs under evaluation, with stated conditions for limited use
Show the answer and why
  • AAs approved, because the security review is complete and found no issues

    Incorrect

    Approval should follow the complete review. A passed security check does not settle the open legal question about code ownership.

  • BAs blocked until legal approves, without listing it on the internal page

    Incorrect

    Blocking a tool still under review and hiding its status makes the governed path slow and opaque, which pushes engineers toward unapproved alternatives.

  • CLeave it off the list, which covers production tools only

    Incorrect

    A catalog that leaves out tools in review gives employees no clear answer, which is the gap shadow AI fills.

  • DAs under evaluation, with stated conditions for limited use

    Correct

    A tool whose review is still in progress belongs in the under evaluation category. Publishing its status and conditions keeps the governed path visible and responsive, which is what keeps people off unapproved tools.

A transparent classification of AI tools only works if every tool has a clear status, including the ones still being reviewed. AWS governance guidance tracks which models are approved for which uses and stresses responsive approval processes so that the governed path is more attractive than the shadow path.

Question 7 · choose 1

A small insurer is automating its contact center. Many contacts are simple and predictable, such as policy balance checks; others are complex or ambiguous. Which design matches AWS's reference scenario for an AI contact center?

  1. AGenerative AI for every single contact, including the simple balance checks
  2. BFixed menu flows for every contact, including complex disputes
  3. CHuman agents for every contact, using AI only for reporting
  4. DSimple flows for routine requests, AI for complex ones, then a person
Show the answer and why
  • AGenerative AI for every single contact, including the simple balance checks

    Incorrect

    Simple, predictable requests do not need generative AI; structured flows handle them reliably at lower cost.

  • BFixed menu flows for every contact, including complex disputes

    Incorrect

    Fixed flows cannot handle the variety of complex or ambiguous requests.

  • CHuman agents for every contact, using AI only for reporting

    Incorrect

    Routing everything to people gives up automation where it works well.

  • DSimple flows for routine requests, AI for complex ones, then a person

    Correct

    AWS's autonomous call center scenario handles structured requests with intent-based flows, uses generative AI for complex or ambiguous requests and falls back to a live agent.

The choice between rules and AI is often per request type. Combining deterministic flows, generative AI and human fallback uses each where it fits best.

Question 8 · choose 1

A marketing team asks to use a free consumer generative AI chat app to brainstorm campaign taglines from the company's public product pages. Two team members also want to paste in the unreleased product roadmap to get sharper ideas. The provider's terms let it use submitted content to improve its services, and the company has no business agreement with the provider. The AI governance lead must publish a classification this week that lets the low-risk work go ahead. Which classification should she publish?

  1. ABlocked for all uses until the provider offers enterprise terms
  2. BUnder evaluation for all uses until the provider's model is threat-modeled
  3. CApproved for all marketing content, since staff review every tagline
  4. DApproved for public, non-proprietary content; blocked for the roadmap
Show the answer and why
  • ABlocked for all uses until the provider offers enterprise terms

    Incorrect

    AWS warns that banning generative AI pushes employees toward unmanaged consumer apps, and its scoping guidance allows Scope 1 apps to be used with public, non-proprietary data, so a full block fails the goal of letting the low-risk work go ahead.

  • BUnder evaluation for all uses until the provider's model is threat-modeled

    Incorrect

    Thorough threat modeling is AWS's guidance for Scopes 3 to 5, where the organization builds the solution; for a consumer app the buyer evaluates the provider's risks, and holding every use keeps the low-risk work waiting.

  • CApproved for all marketing content, since staff review every tagline

    Incorrect

    Reviewing outputs does not control what goes in: the provider may use submitted content to improve its services, so pasting the unreleased roadmap would expose it.

  • DApproved for public, non-proprietary content; blocked for the roadmap

    Correct

    For Scope 1 consumer apps, AWS advises prioritizing public, non-proprietary data because providers may use submitted data to enhance their models or services. That lets the tagline work proceed and keeps the roadmap out.

A classification can approve a tool for some data and block it for other data. With a consumer app whose provider may reuse what it receives, only public information belongs in it; proprietary plans need a tool with enterprise protections, or no AI tool at all.

Question 9 · choose 1

A bank has evaluated a generative AI writing tool. It performs well for internal memos, but the bank's risk thresholds for content shown to the public are much stricter. How should the tool be classified?

  1. AApproved for all uses, because it performed well internally
  2. BBlocked for all uses, because public use carries risk
  3. CApproved internally; public-facing use needs its own review
  4. DLeft unclassified until every possible use of it has been tested
Show the answer and why
  • AApproved for all uses, because it performed well internally

    Incorrect

    Internal performance does not show that the stricter public-facing thresholds are met.

  • BBlocked for all uses, because public use carries risk

    Incorrect

    Blocking everything gives up the internal value the evaluation already confirmed.

  • CApproved internally; public-facing use needs its own review

    Correct

    AWS advises calibrating risk strategy to deployment context and user exposure, noting that internal applications warrant different controls than public-facing AI systems.

  • DLeft unclassified until every possible use of it has been tested

    Incorrect

    Leaving it unclassified gives employees no guidance and invites unapproved use.

A transparent classification of AI tools can be specific about where a tool may be used. Matching approval to exposure lets organizations gain value safely while stricter cases get the review they need.

Question 10 · choose 1

A utility routes customer emails using 300 keyword rules. Customers describe the same problem in so many different ways that a third of emails end up with the wrong team, and the rules keep growing. Which approach should the operations manager consider?

  1. AAdding more keyword rules until all phrasings are covered
  2. BAI that interprets the meaning of varied emails
  3. CA fixed menu that forces customers to pick a category first
  4. DSorting emails by subject line
Show the answer and why
  • AAdding more keyword rules until all phrasings are covered

    Incorrect

    The variety of phrasing is the problem; more rules keep growing without catching every variation.

  • BAI that interprets the meaning of varied emails

    Correct

    AWS guidance points to generative AI when a use case requires understanding widely varying inputs, including natural language, which is where fixed rules fall short.

  • CA fixed menu that forces customers to pick a category first

    Incorrect

    Forcing categories shifts the burden to customers, who often choose wrongly.

  • DSorting emails by subject line

    Incorrect

    Sorting changes the order of emails without interpreting what each one is about, so misrouting continues.

Rules work when inputs are predictable. When people express the same thing in endless ways, AI that understands language is the better tool for classifying and routing.

Question 11 · choose 1

A retailer's new customer-service agent decides on its own whether to call the order system, the refund system or the shipping system. The engineers wrote no routing rules and did not retrain the model; they gave the agent a short description of each system and a set of instructions. Customers never mention internal systems. A product manager asks how the agent chooses which system to call. What is the accurate explanation?

  1. AIt matches words in the message to the name of each system
  2. BIt calls the three systems in a fixed order until one responds
  3. CIt learned which system to call when the model was first trained
  4. DThe model reasons over its tool list and instructions
Show the answer and why
  • AIt matches words in the message to the name of each system

    Incorrect

    Customers do not name internal systems, and the agent does not rely on keyword matching; the model reasons over the tool descriptions and instructions it was given.

  • BIt calls the three systems in a fixed order until one responds

    Incorrect

    A fixed order is scripted automation; in an agent, the model selects the appropriate tool for each step from the tools it has been given.

  • CIt learned which system to call when the model was first trained

    Incorrect

    The model was not trained on this retailer's private systems and was not retrained; it learns about the tools from the list and instructions it is given when it runs.

  • DThe model reasons over its tool list and instructions

    Correct

    An agent is given a list of tools with instructions on how to use them; the model provides the reasoning to select the appropriate tool, guided by the system prompt.

Tool use is a core agent capability. Clear tool descriptions and instructions let the model reason about which action fits each step, which is why agent design includes careful definition of tools rather than routing rules.

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