Task Statement 2.2: Understand the capabilities and limitations of generative AI for solving business problems.

Generative AI delivers significant business benefits such as adaptability, speed, creativity, scalability, and cost efficiency, making it ideal for automating tasks, enhancing personalization, and driving innovation. However, it also presents risks like hallucinations, bias, inaccuracy, high compute cost, and privacy concerns that must be carefully managed. Choosing the right generative model involves balancing performance, customizability, compliance, and deployment needs. To ensure long-term success, organizations must track both technical performance and business impact using metrics like accuracy, conversion rate, user satisfaction, and cost savings, aligning generative AI with strategic goals and operational value.