AI Governance and Frameworks CRAGE Practice Questions (Page 6)

Questions 26–30

1. 26application · medium

   An insurance company uses an AI system to set premium rates. A regulator asks how the company ensures accountability for the AI's decisions. The company has a governance committee, but the committee has not defined who is responsible for the system's outcomes. Which action best establishes accountability?

   • ADesignate a senior executive as the accountable owner for the AI system and document that responsibility in the governance policy.
   • BHave the governance committee collectively accept responsibility for all AI decisions.
   • CAsk the regulator to define the accountability structure for the company.
   • DDocument that the AI system is fully automated and therefore no human is accountable.
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2. 27application · medium

   A social media company is developing an AI content moderation system. The system uses user data to personalize moderation, but privacy advocates raise concerns about data collection and potential bias against minority groups. The company wants to address these ethical considerations while maintaining effective moderation. Which action should the company take?

   • ADisable all personalization features to avoid privacy issues
   • BCollect as much user data as possible to improve moderation accuracy
   • CImplement a privacy impact assessment and bias testing as part of the development process
   • DDelegate all moderation decisions to the AI system without human review
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4. 28application · medium

   A logistics company is implementing an AI system for route optimization. The company wants to develop an AI governance policy that minimizes environmental impact while maintaining efficiency. The policy must also align with the company's sustainability goals. Which element should the policy include?

   • AA requirement to measure and report the environmental impact of AI systems
   • BA requirement to use the most energy-efficient AI models, even if they are less accurate
   • CA requirement to use the most accurate AI models regardless of energy consumption
   • DA requirement to offset carbon emissions without changing AI operations
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5. 29expert · hard

   A healthcare provider is using an AI system to prioritize patient appointments. The system was developed internally and is subject to the EU AI Act as a high-risk system. The provider has a compliance team but no formal audit process. The system has been in use for six months, and a recent internal review found that the system sometimes deprioritizes patients with rare conditions. The provider must ensure compliance and address the issue. What should the provider do first?

   • AImmediately shut down the AI system and revert to manual prioritization
   • BAdjust the system's algorithm to prioritize rare conditions without further analysis
   • CNotify the compliance team but take no further action
   • DConduct a thorough audit of the AI system, including bias testing and documentation review
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6. 30foundation · easy

   Which principle of AI governance ensures that organizations can explain and justify the decisions made by their AI systems to stakeholders and regulators?

   • AFairness
   • BAccountability
   • CHuman oversight
   • DTransparency
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