Scenario: A financial application is leveraging Machine Learning for fraud detection. How can functional testing incorporate AI to validate the effectiveness of these fraud detection algorithms?

Functional testing in this scenario involves generating test scenarios with varied fraud patterns to assess the effectiveness of the machine learning-based fraud detection algorithms. Testers can use mock data to simulate fraudulent activities and evaluate how well the algorithms identify and respond to different types of fraud. Additionally, performance testing under high transaction loads ensures that the fraud detection system operates efficiently in real-world conditions. Integration testing with external machine learning models is crucial for validating the seamless collaboration between the application and the underlying algorithms.