AI Investment Justification CAIPM Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   An AI program manager is seeking approval for a new AI project. The CFO is concerned about the payback period, while the CTO is worried about technical feasibility. The CEO wants to know how the project aligns with the company's digital transformation strategy. What is the best approach to secure approval from all three executives?

   • APrepare a single presentation that addresses financial metrics, technical feasibility, and strategic alignment, with tailored talking points for each executive.
   • BFocus on the technical feasibility and assume the financial and strategic benefits are obvious.
   • CPresent separate meetings to each executive, focusing only on their specific concerns.
   • DAsk the CTO to champion the project and convince the other executives.
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2. 22expert · hard

   An AI program manager is presenting a business case for a new AI system to the executive committee. The committee includes the CFO, who is concerned about the payback period; the CTO, who is worried about data privacy; and the CEO, who wants to know how the project supports the company's growth strategy. The program manager has limited time for the presentation. What is the best way to communicate the investment rationale to secure approval?

   • AStart with a high-level summary that addresses financial, technical, and strategic concerns, then dive into details as needed.
   • BAsk each executive to submit their concerns in writing and address them in a follow-up meeting.
   • CFocus on the financial metrics and let the CTO and CEO ask questions if they have concerns.
   • DProvide a detailed technical document in advance and only discuss the financial aspects in the meeting.
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4. 23expert · hard

   A retail chain is building a business case for an AI inventory management system. The project has a positive NPV, but the implementation will require significant changes to existing warehouse processes. The warehouse managers are resistant to the change, and the CFO is concerned about the implementation costs. What is the most effective way to structure the business case to address both concerns?

   • AFocus on the financial benefits and minimize the discussion of implementation challenges to avoid raising concerns
   • BPresent the financial benefits first and then address the implementation challenges with a detailed change management plan
   • CAsk the warehouse managers to approve the case before presenting it to the CFO
   • DPresent the implementation challenges first and then the financial benefits
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5. 24expert · hard

   A telecom company is evaluating two AI projects: Project A improves customer churn prediction with a high probability of success but moderate ROI; Project B automates network optimization with a lower probability of success but a very high ROI if successful. The company has a limited budget and can only fund one project. The CFO wants to maximize expected ROI, while the CTO is concerned about the risk of failure. Which project should be selected?

   • AProject A, because it has a higher probability of success and lower risk.
   • BProject B, because it has a higher potential ROI.
   • CSelect the project that aligns with the company's strategic goals, regardless of ROI.
   • DSelect the project with the higher expected ROI, calculated as probability of success multiplied by the ROI.
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6. 25foundation · easy

   Which of the following is an example of a technical risk in an AI investment?

   • ACompetitors launching a similar AI product
   • BRegulatory changes affecting AI usage
   • CInsufficient data quality for model training
   • DChanges in market demand for the product
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