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Chapter 4 - Designing the Intelligence Strategy

Chapter 4 focuses on defining the intelligence strategy required to power an AI product effectively and economically. It establishes how to choose between LLMs, traditional machine learning, and deterministic logic, select the right foundation models and deployment approaches, and determine when to use prompt engineering, RAG, fine tuning, structured generation, and tool calling. It also addresses model routing, cascading, and human escalation to ensure that intelligence is aligned with the product’s requirements, risk profile, performance needs, and business objectives through the Enterprise Model & Intelligence Decision Matrix.