Tailoring content to individual needs is limited. This is offset to some degree, depending on program design by the students being able to self pace the content. However, the reality of the emotional side of human to human interaction is not present and the actual hands on experience is not available for most industrial situations. The delivery platform also requires a significant up front capital cost where as training using a presenter is normally pay as you go. Hardware and program difficulties can frustrate learning and alienate students and their supervisors.
Induction is a good example.
It is a big ask of a trainer to present the same material over and over again perhaps hundreds of times without variation in quality or content and with the required enthusiasm. Isolated small work groups. Examples are shift workers, geographically remote workers or technically remote workers. Simulation is required due to either the actual trial being dangerous or expensive. Plant malfunction trials is an example.