AI Strategy and Planning CRAGE Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A media company wants to use AI for content personalization. The editorial team fears AI will reduce content quality, and the legal team is concerned about copyright issues. The company has no AI strategy. What is the first step?

   • AConduct a legal review of copyright implications.
   • BCreate a cross-functional task force to define the AI vision and goals.
   • CPurchase a personalization engine and integrate it quickly.
   • DAssess the company's AI maturity.
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   Which of the following is an example of a KPI for an AI initiative aimed at improving customer service?

   • ANumber of lines of code written
   • BAverage customer satisfaction score (CSAT)
   • CNumber of AI models deployed
   • DAmount of training data used
   Reveal Solution Discussion Select an answer first
4. 23application · medium

   A city government is planning an AI system for traffic management. The mayor wants reduced congestion, but privacy advocates are concerned about surveillance. The transportation department wants real-time data. How should the city engage stakeholders?

   • AHold public consultations and involve privacy advocates in the design.
   • BProceed with the system and publish results after deployment.
   • CUse anonymized data to avoid the need for public consultation.
   • DLimit stakeholder input to the transportation department.
   Reveal Solution Discussion Select an answer first
5. 24expert · hard

   A pharmaceutical company is using AI to accelerate drug discovery. The company operates globally and must comply with GDPR, the EU AI Act, and various health data regulations. The company also wants to maintain a competitive edge by keeping its algorithms proprietary. Which approach best reconciles regulatory compliance with the need for intellectual property protection?

   • APublish the algorithms' source code to ensure full transparency and compliance with the EU AI Act.
   • BImplement a governance framework that documents the AI system's development process and decision-making logic internally, while protecting the underlying algorithms as trade secrets.
   • CUse a third-party auditor to review the algorithms, but do not document the development process.
   • DAvoid using AI in drug discovery to eliminate regulatory and IP risks.
   Reveal Solution Discussion Select an answer first
6. 25expert · hard

   A traditional bank has a mature IT infrastructure but no data science team and a risk-averse culture. They want to implement AI for fraud detection. The board wants quick results, but the risk committee demands thorough validation. What should the AI strategy prioritize?

   • ALaunch a full-scale AI system immediately.
   • BBuild internal AI capabilities gradually while running a pilot with external support.
   • CDelay AI adoption until the bank builds a data science team.
   • DOutsource the entire AI system to a vendor.
   Reveal Solution Discussion Select an answer first