Identify AI Adoption Risks CAIPM Practice Questions (Page 2)

Questions 6–10

1. 6expert · hard

   A university is developing an AI system to screen student applications. The system uses historical admission data, which reflects past biases against certain demographic groups. The university's leadership is concerned about both ethical implications and potential legal challenges. They want to proceed with the AI system but need to mitigate the risks. Which approach best balances the need for efficiency with ethical and legal responsibilities?

   • AAbandon the AI project and return to manual review to avoid any risk.
   • BConduct a thorough bias audit, adjust the model to ensure fairness, and maintain human oversight in final admission decisions.
   • CDisclose the use of AI in the application process but do not change the model.
   • DUse the AI system as the sole decision-maker to ensure consistency and speed.
   Reveal Solution Discussion Select an answer first
2. 7application · medium

   A government agency is adopting an AI system to automate the processing of public records requests. The agency's staff are not familiar with AI and are concerned about job security. The program manager needs to address the operational risk of skill gaps and change management. Which approach is most effective?

   • ADevelop a comprehensive training program that upskills staff to work alongside the AI system, and communicate the benefits clearly.
   • BOffer early retirement packages to staff who are not comfortable with the new technology.
   • CImplement the AI system without informing staff until it is fully operational to avoid unnecessary anxiety.
   • DOutsource the AI system's operation to an external vendor to avoid the need for internal training.
   Reveal Solution Discussion Select an answer first
4. 8application · medium

   An insurance company is developing an AI system to automate claim approvals. During testing, they discover that the model denies claims at a higher rate for customers from certain postal codes. The company must decide how to proceed. Which action best addresses the ethical risk of bias while also considering legal exposure?

   • AStop the AI project entirely and continue using manual claim processing.
   • BInvestigate the cause of the disparate denial rates and adjust the model to reduce bias before deployment.
   • CDeploy the model as is, but add a disclaimer that the system may have biases.
   • DRemove the postal code variable from the model to ensure fairness.
   Reveal Solution Discussion Select an answer first
5. 9application · medium

   A hospital is implementing an AI system to prioritize patient triage in the emergency department. The system uses historical patient data, which may contain biases related to race and socioeconomic status. The hospital's legal team is concerned about potential discrimination claims. Which combination of actions would best mitigate the ethical and legal risks?

   • AConduct a bias audit and implement fairness constraints, while ensuring compliance with healthcare regulations.
   • BDisclose the AI's limitations to patients but continue using it as is.
   • CUse only the most recent patient data to avoid historical biases.
   • DRely solely on the AI system's recommendations without human oversight.
   Reveal Solution Discussion Select an answer first
6. 10foundation · easy

   An AI hiring tool is found to favor candidates from a particular demographic group. Which ethical risk does this represent?

   • AData privacy
   • BCost overrun
   • CBias
   • DSkill gap
   Reveal Solution Discussion Select an answer first