AI Governance CAIPM Practice Questions (Page 1)

Questions 1–5

1. 1application · medium

   A financial services firm has deployed an AI system for fraud detection. Regulators require the firm to demonstrate ongoing compliance and model performance. The program manager must design an auditing and monitoring process. Which process is most appropriate?

   • ASchedule regular model audits and real-time performance monitoring with automated alerts for drift.
   • BConduct a single comprehensive audit at deployment and then only if a complaint is filed.
   • CPublish the model's performance metrics annually in a public report.
   • DRely on the model's initial validation report without further monitoring.
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2. 2expert · hard

   An e-commerce company uses an AI recommendation system that personalizes product suggestions. The system has been criticized for showing gender-stereotyped recommendations. The company wants to address this while maintaining business performance. What is the best approach?

   • AStop personalizing recommendations for all users
   • BImplement a fairness constraint that ensures recommendations are not biased by gender
   • CRemove gender-related features from the model
   • DConduct a user survey to understand preferences
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4. 3application · medium

   A manufacturing company is implementing AI for predictive maintenance. The AI system monitors equipment and predicts failures. The company wants to minimize downtime and safety risks. What is the most important risk to manage?

   • ARegulatory compliance
   • BFalse negatives that miss impending failures
   • CData quality and availability
   • DModel interpretability
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5. 4expert · hard

   An insurance company is deploying an AI system to set premiums for auto insurance. The system uses telematics data from drivers. The company must comply with regulations that prohibit unfair discrimination. The program manager discovers that the AI model produces higher premiums for drivers in certain postal codes, which correlate with minority communities. The company has a legal obligation to avoid discriminatory outcomes. What is the most appropriate risk mitigation strategy?

   • AAdd more features to the model to improve accuracy
   • BRemove the postal code feature from the model
   • CDocument the model's decisions and provide explanations to customers
   • DConduct a disparate impact analysis and adjust the model to reduce adverse impact
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6. 5foundation · easy

   Why is it important to engage a diverse range of stakeholders in AI governance decisions?

   • ATo ensure that all stakeholders agree on every decision
   • BTo incorporate multiple perspectives that can identify potential ethical, social, and technical issues that might otherwise be overlooked
   • CTo reduce the cost of AI development by sharing resources
   • DTo satisfy regulatory requirements that mandate stakeholder approval for all AI projects
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