Multi-arm bandits work well in situation where you have choices and you are not sure which one will maximize your well being. You can use the algorithm for some real life situations. As an example, learning can be a good field:
If a kid is learning carpentry and he is bad at it, the algorithm will tell him/her that he/she probably should need to move on. If he/she is good at it, the algorithm will tell him/her to continue to learn that field.
Dating is a also a good field:
You're a man on your putting a lot of 'effort' in pursuing a lady. However, your efforts are definitely unwelcomed. The algorithm should "slightly" (or strongly) nudge you to move on.
What others real-life situation can we use the multi-arm bandit algorithm for?
PS: If the question is too broad, please leave a comment. If there is a consensus, I'll remove my question.