3.4 Explain AI Governance Considerations (policy, Risk Management, Compliance) AI-TECHNICAL-PRACTITIONER Practice Questions (Page 6)

Questions 26–29

1. 26expert · hard

   A social media company is using an AI system to moderate content. The system is effective at removing harmful content but has been criticized for censoring legitimate speech. The company is facing public pressure and potential regulation. Which governance action best addresses the criticism while maintaining the system's effectiveness?

   • AImplement an appeals process that allows users to contest content removal decisions.
   • BIncrease the AI system's sensitivity to remove more content.
   • CMake the AI system's decisions final and not subject to review.
   • DRemove the AI system and rely on human moderators only.
   Reveal Solution Discussion Select an answer first
2. 27application · medium

   A financial services firm is using an AI system to detect fraudulent transactions. The system is deployed in a country with strict data localization laws. The firm's cloud provider stores data in a neighboring country. What is the most critical compliance issue?

   • AThe fraud detection model is not accurate enough.
   • BThe data is being stored outside the country, potentially violating data localization requirements.
   • CThe AI system may be biased against certain customer groups.
   • DThe cloud provider may not have adequate security certifications.
   Reveal Solution Discussion Select an answer first
4. 28application · medium

   A city government is deploying an AI system to predict traffic congestion and adjust traffic lights. The system uses real-time location data from citizens' smartphones. The city council is concerned about public backlash regarding privacy. Which governance practice best addresses this concern while maintaining the system's effectiveness?

   • AUse only aggregated and anonymized location data to eliminate privacy concerns.
   • BKeep the data sources confidential to avoid public scrutiny.
   • CCancel the project because any use of location data is unethical.
   • DPublish a transparency report explaining the data sources, how the data is used, and the privacy protections in place.
   Reveal Solution Discussion Select an answer first
5. 29foundation · easy

   What is the primary purpose of an AI governance framework?

   • ATo reduce the cost of AI infrastructure by consolidating resources under a single management team
   • BTo replace human decision-making with automated AI systems in all organizational processes
   • CTo ensure AI systems are developed and used in alignment with organizational policies, ethical principles, and legal obligations
   • DTo maximize the performance of AI models by optimizing training data and algorithms
   Reveal Solution Discussion Select an answer first