AI Strategy and Planning CRAGE Practice Questions (Page 7)

Questions 31–35

1. 31application · medium

   A regional bank wants to adopt AI for fraud detection. The board expects the initiative to reduce fraud losses by 20% within two years, while the IT team is concerned about legacy system integration. The compliance team warns about data privacy regulations. The bank has no prior AI experience. What should the AI strategy prioritize first?

   • AConduct a data privacy impact assessment before any other planning activity.
   • BSelect a commercial AI fraud detection product and negotiate a contract.
   • CDefine a clear vision and measurable goals aligned with business objectives, then assess current AI maturity.
   • DImmediately pilot a fraud detection model using available transaction data to demonstrate quick wins.
   Reveal Solution Discussion Select an answer first
2. 32expert · hard

   A city is deploying an AI system to allocate social services. The system must comply with data protection laws, and the city council is divided on the system's fairness. The mayor wants to proceed quickly to show progress. Which stakeholder engagement approach best balances speed and legitimacy?

   • AProceed with the system and hold a public hearing after the system is deployed to address concerns.
   • BDelegate the fairness decision to the data science team to avoid political debate.
   • CDelay the project until all stakeholders agree on every aspect of the system.
   • DConvene a focused advisory panel with representatives from the city council, privacy advocates, and social service recipients to provide input within a defined timeframe.
   Reveal Solution Discussion Select an answer first
4. 33application · medium

   A telecom company is creating an AI roadmap for network optimization. The project has a fixed budget and a deadline of 18 months. The stakeholders include network engineers, customer service, and finance. Which roadmap element is most critical to ensure the project stays on track?

   • ADefine measurable milestones with clear owners and a risk register that is reviewed monthly.
   • BSet a single final milestone for the end of the 18-month period to avoid micromanagement.
   • CAllocate the entire budget to the first phase to ensure the project has enough resources.
   • DInvolve only the network engineering team in the roadmap planning to avoid conflicting priorities.
   Reveal Solution Discussion Select an answer first
5. 34application · medium

   A financial services firm is developing an AI system to detect fraudulent transactions. The system must comply with anti-money laundering (AML) regulations and be transparent enough for auditors. Which planning action best addresses both compliance and transparency?

   • AUse a complex deep learning model and rely on the legal team to explain it to auditors.
   • BFocus only on the model's accuracy and ignore transparency, since AML compliance is the primary goal.
   • CDesign the system with explainable AI techniques and document the model's decision-making process for audit trails.
   • DKeep the model's logic confidential to protect the firm's competitive advantage.
   Reveal Solution Discussion Select an answer first
6. 35foundation · easy

   Which of the following is a widely recognized AI governance framework that provides guidance on the ethical and trustworthy use of AI?

   • ACOBIT
   • BISO/IEC 42001
   • CTOGAF
   • DITIL
   Reveal Solution Discussion Select an answer first