Governance, Ethics, and Responsible AI in Adoption CAIPM Practice Questions (Page 5)

Questions 21–25

1. 21expert · hard

   A global retail company is deploying an AI system for dynamic pricing. The system will adjust prices in real time based on demand. Consumer advocacy groups have accused the company of price discrimination. The company's legal team says the practice is legal. The CEO wants to avoid negative publicity. The program manager must develop a communication strategy. What is the most effective approach?

   • AIssue a press release denying any price discrimination and stating the system is legal.
   • BStop using dynamic pricing entirely to avoid any controversy.
   • CLimit communication to regulators and legal counsel to avoid public scrutiny.
   • DProactively publish a transparency report explaining how the pricing model works and what data it uses.
   Reveal Solution Discussion Select an answer first
2. 22application · medium

   A government agency is deploying an AI system to determine eligibility for social benefits. The system uses historical data that may reflect past administrative biases. The agency wants to ensure accountability. What is the most important governance mechanism?

   • AEstablish a clear chain of responsibility, with named individuals accountable for the system's decisions.
   • BUse a complex model to avoid easy criticism of the system's decisions.
   • CAllow the AI to make final decisions without human review to ensure consistency.
   • DPublish the model's source code on a public repository to ensure transparency.
   Reveal Solution Discussion Select an answer first
4. 23application · medium

   A software company is developing an AI chatbot for customer support. The chatbot will be deployed in the European Union and in California. The legal team notes that both the EU AI Act and California privacy regulations may apply. The program manager must plan for compliance. What is the most appropriate action?

   • AComply with the stricter of the two regulatory frameworks for all users to simplify global deployment.
   • BWait for the regulations to be fully enforced before taking any action.
   • CComply with each regulation separately for users in each jurisdiction.
   • DIgnore the EU AI Act because the company is not based in the EU.
   Reveal Solution Discussion Select an answer first
5. 24foundation · easy

   In the context of AI ethics, what does 'fairness' primarily refer to?

   • AGuaranteeing that AI systems are equally fast for all users
   • BEnsuring AI systems do not produce biased outcomes that disadvantage certain groups
   • CEnsuring AI systems are open source and freely available
   • DProviding the same user interface to every user
   Reveal Solution Discussion Select an answer first
6. 25application · medium

   A government agency is deploying an AI system for public benefits eligibility. The agency wants to ensure transparency and public trust. What is the most effective way to communicate the system's purpose and limitations?

   • AProvide a summary on the agency's website without any public meetings.
   • BPublish a plain-language guide and hold town hall meetings to answer questions.
   • CRelease the full technical documentation and algorithm code to the public.
   • DOnly share information with approved journalists under embargo.
   Reveal Solution Discussion Select an answer first