The Rules module allows administrators to set up event-based automation of certain system tasks. Events like content creation or user login can be used to trigger conditions and subsequent actions, like modifying content or sending emails. Common uses include updating content on save, notifying administrators of new comments, and bulk operations like unpublished content using Views. Real-world examples were provided using characters BA and Murdock from The A-Team TV show to illustrate configuration of rules for title updating, comment notifications, and unpublishing nodes with Views Bulk Operations.