If you play outside isolation, the computer will choose your best outside shooter (the best outside shooter has a mixture of jump shot, jump range, and driving). The other four players on the court will try to find the best shooter in open space, therefore giving him the most shots. The downside of this is that even if you have a good inside player that is just shooting amazing, he will not get to shoot as much since only your outside player is shooting. Also, in my opinion, you lose offensive flow, though I cannot say that is a proven fact.
Hope this helps and gives you an idea of how it works:)