A rule of logic is an explicit conditional statement that derives or permits an outcome when specified conditions hold. In rule-based AI, human-made rules encode knowledge and support reasoning without a full model-training cycle. This makes them practical for analytical, relatively simple problems where the relevant domain can be defined in advance. section 3.2.1
Banking compliance
A bank can manually encode rules that verify whether financial transactions satisfy legal and regulatory requirements. The approach can produce predictable, explainable results, accelerate an MVP, and generate training data aligned with user needs. Its coverage remains limited when real-world cases introduce nuances and edge cases. section 3.2.1
