A company needs an automated solution to group its customers into multiple categories.

Comprehensive and Detailed Explanation from AWS AI Documents:

Classification requires predefined labels (categories). The company explicitly does not want to define categories.

Regression (linear or logistic) predicts numerical values or probabilities, not groups.

Clustering is an unsupervised learning technique that groups similar data points together based on their features without needing labeled categories.

AWS defines clustering as:

“Clustering is an unsupervised machine learning algorithm that automatically groups data points into clusters based on their similarities.”

This makes Clustering the correct choice for segmenting customers into groups without predefined labels.

???? Reference:

AWS ML Glossary – Clustering