Day 3 – Identifying Business
Challenges Solvable by AI
Week 2 | AI’s Impact on Industries
CAIP Cohort IV – NCAI, NUST
Training Objectives
Types of AI Used in Business
Business Problems That AI Can Solve
AI Solution Proposal
1. Business Problem
2. Type of Data Available
3. AI Technology to Use
4. Proposed AI-Driven Solution
5. Expected Benefits
6. Implementation Challenges
7. Team Members
1. Fraud Detection
1. Business Problem 3. AI Technology to Use
• Fraudulent financial transactions, identity • Machine Learning (Supervised &
theft, and false insurance claims are causing Unsupervised)
major revenue losses and reputational • Anomaly Detection
damage. • Neural Networks
2. Type of Data Available
• Transaction history 4. Proposed AI-Driven Solution
• User behavior logs • Use anomaly detection with historical
patterns and real-time transaction scoring to
• IP/device data flag suspicious activity and block fraud.
• Customer complaints
• Geolocation data
1. Fraud Detection
5. Expected Benefits 7. Team Members
• 40% reduction in fraudulent transactions • Data Engineer
• Real-time detection and prevention • AI Model Developer
• Improved trust and compliance • Business Analyst
6. Implementation Challenges
• Imbalanced datasets (few fraud examples)
• False positives affecting legitimate users
• Data privacy and regulatory constraints
2. Inventory Forecasting
1. Business Problem 3. AI Technology to Use
• Stockouts and overstocking are disrupting • Time-Series Forecasting
supply chains and leading to customer • LSTM Networks
dissatisfaction and lost sales. • Regression Analysis
2. Type of Data Available
• Sales history 4. Proposed AI-Driven Solution
• Seasonal trends • Use LSTM-based forecasting models to
predict product demand at a daily or weekly
• Supplier delivery records level, integrated with ERP for automated
• Promotional calendars restocking.
• Weather data
2. Inventory Forecasting
5. Expected Benefits 7. Team Members
• 25% increase in forecast accuracy • ML Engineer
• Reduced holding costs and waste • Supply Chain Lead
• Improved customer satisfaction • Software Integrator
6. Implementation Challenges
• Incomplete historical data
• Volatile market behavior
• Integration with inventory systems
3. Customer Segmentation
1. Business Problem 3. AI Technology to Use
• Ineffective marketing due to one-size-fits-all • Clustering (K-Means, DBSCAN)
strategy, leading to low customer engagement • Decision Trees
and high acquisition costs. • Unsupervised Learning
2. Type of Data Available
• Demographics 4. Proposed AI-Driven Solution
• Purchase history • Segment customers using unsupervised ML
based on purchase behavior and preferences
• Web/app usage behavior to deliver targeted marketing campaigns.
• CRM interaction logs
• Survey responses
3. Customer Segmentation
5. Expected Benefits 7. Team Members
• 35% increase in campaign ROI • Marketing Analyst
• Improved personalization • Data Scientist
• Better product recommendations • CRM Specialist
6. Implementation Challenges
• Data silos across departments
• Changing customer behavior
• Bias in segmentation criteria
4. Employee Churn Prediction
1. Business Problem 3. AI Technology to Use
• High turnover of key employees is affecting • Classification Models
continuity, morale, and increasing training and • Logistic Regression
hiring costs. • Random Forest
• XGBoost
2. Type of Data Available
• HR records (salary, promotions)
• Employee surveys 4. Proposed AI-Driven Solution
• Performance reviews • Develop a predictive model using historical
churn indicators to identify at-risk employees
• Attendance logs and alert HR for proactive retention.
• Exit interviews
4. Employee Churn Prediction
5. Expected Benefits 7. Team Members
• 20% reduction in attrition • HR Partner
• Improved employee engagement • ML Developer
• Better workforce planning • Organizational Psychologist
6. Implementation Challenges
• Sensitive HR data privacy
• Ethical concerns with prediction
• Resistance from HR teams
5. Quality Control
1. Business Problem 3. AI Technology to Use
• Manual quality checks are inconsistent, time- • Computer Vision (CNNs)
consuming, and often fail to catch subtle • Anomaly Detection
product defects. • Image Recognition
2. Type of Data Available
• Product images 4. Proposed AI-Driven Solution
• Sensor readings • Train computer vision models to detect
product anomalies from images/video on
• Production logs production lines in real time.
• Inspection reports
• Audio/visual recordings
5. Quality Control
5. Expected Benefits 7. Team Members
• 60% drop in defective units • AI Vision Engineer
• Faster quality inspections • QA Lead
• Lower product return rates • Hardware Integration Specialist
6. Implementation Challenges
• High-quality labeled image datasets
• Real-time processing constraints
• Model generalization across product variants
6. Tax Evasion Detection
1. Business Problem 3. AI Technology to Use
• Millions are lost annually due to undeclared • Machine Learning (Gradient Boosting,
income, false deductions, and shell Random Forest)
companies that evade taxes. • Network Analysis
• Anomaly Detection
2. Type of Data Available
• Income declarations
4. Proposed AI-Driven Solution
• Banking & transaction records
• Train supervised models on past tax fraud
• Social media activity (for lifestyle mismatch) cases to detect suspicious filing patterns. Use
• Corporate filings graph-based analysis to identify shell
• Historical fraud reports company networks and undeclared sources
of income.
6. Tax Evasion Detection
5. Expected Benefits 7. Team Members
• Increase in recovered taxes (up to 30%) • Data Engineer – FBR
• Reduced manual audits • AI Analyst – Ministry of Finance
• Proactive identification of high-risk individuals • Legal Liaison Officer
6. Implementation Challenges
• Access to cross-agency data
• Privacy & legal considerations
• Need for explainable AI for legal
accountability
7. Predictive Healthcare Resource Allocation
1. Business Problem 3. AI Technology to Use
• Overcrowding in hospitals and uneven • Predictive Analytics (Time Series +
resource allocation across regions lead to Regression)
preventable deaths and high operational • Geospatial Analysis
costs. • Deep Learning (LSTM, RNN)
2. Type of Data Available
• Hospital occupancy logs 4. Proposed AI-Driven Solution
• Disease outbreak history • Forecast disease outbreaks and hospital
resource needs (ICU beds, ventilators) using
• Demographics & mobility data multi-source data to preemptively deploy
• Seasonal trends supplies and staff.
• Insurance claims & lab reports
7. Predictive Healthcare Resource Allocation
5. Expected Benefits 7. Team Members
• 25% reduction in emergency overcrowding • Health Data Strategist
• Faster emergency response times • ML Engineer
• Efficient use of limited resources • District Health Officer – ICT
6. Implementation Challenges
• Data standardization across regions
• Legacy systems in public hospitals
• Real-time data availability
8. Legal Document Summarization & Judgment Analysis
1. Business Problem 3. AI Technology to Use
• Legal professionals and policy analysts face • Natural Language Processing (NLP)
information overload when reviewing long • Legal-specific Large Language Models (LLMs)
case files, precedents, and legislative • Text Summarization (Abstractive + Extractive)
documents. Manually extracting key legal • Semantic Search & Named Entity Recognition
arguments and precedents is labor-intensive,
inconsistent, and slows decision-making. • Legal Argument Mining
2. Type of Data Available 4. Proposed AI-Driven Solution
• Court judgments and rulings (Supreme Court, • Develop a secure NLP-based system using fine-
High Courts) tuned LLMs to:
• Legal statutes and amendments • Auto-summarize legal judgments and briefs
• Identify legal issues, precedents, and outcomes
• Law commission reports • Answer legal queries using RAG
• Case summaries and hearing transcripts • Cluster and organize cases by issue or statute
• Constitutional documents and legal petitions • Enable multilingual summarization (Urdu-English).
8. Legal Document Summarization & Judgment Analysis
5. Expected Benefits 7. Team Members
• 70% reduction in time spent reading and • Judicial Data Analyst – Law Reform Wing
interpreting legal texts • NLP Engineer – IT Division
• Improved legal research and drafting speed • Legal Domain Expert
• Standardized summaries and better case
comparison
• Support for junior staff and legal aid offices
6. Implementation Challenges
• Access to digitized legal corpora
• Accuracy in sensitive legal interpretation
• Legal risk in relying on AI for advisory use
• Need for judicial and ethical oversight
