4.3 Describe the Importance of Responsible AI in Business. GENERATIVE-AI-LEADER Practice Questions (Page 4)

Questions 16–20

1. 16foundation · medium

   Why is responsible AI considered a business imperative rather than just an ethical ideal?

   • AIt helps the business avoid legal penalties, maintain customer loyalty, and secure a competitive advantage.
   • BIt reduces the need for human oversight of AI systems.
   • CIt is required only when AI systems are deployed in regulated industries like healthcare or finance.
   • DIt ensures that AI models are always more accurate than human decision-making.
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   An insurance company uses a generative AI system to recommend claim approvals. A regulator asks the company to explain why a specific claim was denied. The company cannot provide a clear reason because the model is a black box. What should the company do to address this regulatory request?

   • AReplace the model with a simpler, inherently interpretable model
   • BTell the regulator that the model is proprietary and cannot be explained
   • CUse an explainable AI technique to provide a post-hoc explanation for the decision
   • DIgnore the request because the decision was made by AI
   Reveal Solution Discussion Select an answer first
4. 18foundation · medium

   Which technique is most appropriate when you need to protect privacy but still require the ability to re-identify individuals for legitimate business purposes?

   • APseudonymization
   • BData masking
   • CAnonymization
   • DEncryption
   Reveal Solution Discussion Select an answer first
5. 19foundation · medium

   What is a key element of accountability in AI systems?

   • AKeeping the AI system's decision-making process secret.
   • BEnsuring that AI systems are used only for internal purposes.
   • CAssigning clear roles and responsibilities for AI governance.
   • DDeploying AI systems without any human oversight.
   Reveal Solution Discussion Select an answer first
6. 20application · medium

   A retail company is launching a generative AI tool that writes product descriptions. The marketing team will use it daily. The company wants to ensure that if the tool produces harmful content, there is a clear process for addressing it. What should the company establish?

   • AA policy that all AI outputs are automatically published without review
   • BA technical solution that prevents all harmful content from being generated
   • CA cross-functional AI governance committee with defined roles and escalation paths
   • DA legal disclaimer that the company is not responsible for AI-generated content
   Reveal Solution Discussion Select an answer first