Objective 2.4 Identify Ethical Challenges That May Conflict or Require Compromise with Regulatory And/or Business Constraints or Demands CERTIFIED-ETHICAL-EMERGING-TECHNOLOGIST Practice Questions (Page 2)

Questions 6–10

1. 6application · medium

   A fintech company's AI-based loan approval system is criticized for being a 'black box'. The company publishes a detailed blog post explaining the system's high-level architecture and its commitment to fairness, but does not disclose the actual model features or decision logic. The company claims this demonstrates transparency. This is best described as:

   • AA legitimate use of trade secret protection to safeguard proprietary algorithms.
   • BA reasonable balance between transparency and intellectual property protection.
   • CA regulatory compliance failure that should be escalated to legal counsel.
   • DEthics washing, because the company claims transparency without providing substantive information.
   Reveal Solution Discussion Select an answer first
2. 7foundation · easy

   Which of the following is a balanced approach to managing compliance costs while maintaining business viability?

   • AIgnore compliance until the company grows large enough to afford it
   • BImplement a risk-based compliance strategy that prioritizes the most impactful requirements and phases in others over time
   • COutsource all data processing to a third party to avoid compliance responsibilities
   • DLimit the company's operations to regions with no data protection laws
   Reveal Solution Discussion Select an answer first
4. 8foundation · easy

   An e-commerce company optimizes its delivery routes to minimize fuel costs and delivery time. As a result, drivers are given extremely tight schedules, leading to increased stress and a higher rate of traffic accidents. What is the core ethical issue in this scenario?

   • AOptimizing for efficiency has caused unintended harm to individuals (drivers) and society (traffic accidents)
   • BThe company is using AI to replace human workers
   • CThe company is violating data privacy regulations
   • DThe company is failing to comply with environmental regulations
   Reveal Solution Discussion Select an answer first
5. 9foundation · easy

   Which of the following techniques can help reconcile the need for large datasets with privacy protection?

   • ARemoving all data that is not directly related to the model's purpose
   • BCollecting all available data and relying on encryption to protect it
   • CSharing data with other institutions without consent, as long as it is for research
   • DUsing synthetic data that mimics the statistical properties of real data without containing actual personal information
   Reveal Solution Discussion Select an answer first
6. 10expert · hard

   A company has developed a proprietary credit-scoring algorithm that is a key competitive advantage. A consumer advocacy group is demanding full disclosure of the algorithm's logic, citing fairness concerns. The company's legal team says full disclosure would destroy its intellectual property. The company wants to maintain trust while protecting its IP. Which approach best reconciles these interests?

   • APublish the full source code and model weights to demonstrate complete transparency.
   • BProvide a detailed explanation of the model's features and decision boundaries without revealing the exact weights or proprietary training data.
   • CCommission an independent audit and share only the audit summary with the advocacy group.
   • DRefuse all disclosure and rely on the legal argument that the algorithm is a trade secret.
   Reveal Solution Discussion Select an answer first