<ul><li>Lambda functions in Python are anonymous functions defined with the lambda keyword, commonly used for quick transformations, filtering, or mapping of data in AI workflows.</li><li>They are useful for preprocessing features, applying activation functions, formatting outputs, and applying functions to each element in an iterable.</li><li>Common use cases of lambda functions in AI engineering include basic transformations, handling multiple iterables, filtering data, and cumulative operations like summing or multiplying elements.</li><li>However, it is advised to avoid using reduce() function in certain cases to ensure efficient coding practices.</li></ul>

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