Artificial Intelligence Programming Practice Exam 2025 - Free AI Programming Practice Questions and Study Guide

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What are the main applications of clustering algorithms?

Customer segmentation

Clustering algorithms are primarily used for grouping a set of objects in such a way that objects in the same group (or cluster) are more similar to each other than to those in other groups. Customer segmentation is a key application of clustering because businesses can utilize it to analyze consumer behavior and identify distinct groups within their customer base. For instance, companies can cluster customers based on purchasing habits, demographics, or preferences, enabling them to tailor marketing strategies and improve customer service.

While there are other valid applications of clustering, such as identifying anomalies or recognizing patterns in images and textual data, customer segmentation is one of the most prevalent uses in business and marketing contexts, making it a standout example of how clustering algorithms can provide insights into large datasets.

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Image recognition

Text summarization

Anomaly detection

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