1.3 Identify the Core Layers of the Gen AI Landscape and the Business Implications. GENERATIVE-AI-LEADER Practice Questions (Page 4)

Questions 16–20

1. 16application · medium

   A legal firm needs to summarize thousands of confidential contracts daily. They have a strict budget and require high accuracy on legal terminology. Which model strategy is most appropriate?

   • AFine-tune a smaller open-source model on a curated legal corpus and deploy it on their own infrastructure.
   • BUse a large general-purpose foundation model via API for all documents.
   • CUse a specialized model that is pre-trained only on legal documents, with no further customization.
   • DRely on a rule-based text extraction tool that identifies key clauses without using a generative model.
   Reveal Solution Discussion Select an answer first
2. 17expert · hard

   A company wants to deploy an AI agent to handle customer refunds. The agent must decide whether to approve refunds based on policy, but the company wants to minimize the risk of fraudulent refunds. Which design is best?

   • ALet the agent autonomously approve all refunds within a certain dollar amount.
   • BHave the agent flag refunds that meet certain criteria for human review, while auto-approving low-risk ones.
   • CUse a large language model to decide refund approvals without any additional fraud detection tools.
   • DDisable the agent and process all refunds manually to eliminate fraud risk.
   Reveal Solution Discussion Select an answer first
4. 18application · medium

   A logistics company wants to automate customer service for shipment tracking. The system should answer queries, provide status updates, and escalate to a human if the customer is dissatisfied. Which architecture best supports this?

   • AA single large language model that generates responses based on a static FAQ.
   • BAn AI agent that uses a language model, a shipment-tracking API, and a sentiment-analysis tool to decide when to escalate.
   • CA rule-based chatbot that matches keywords to predefined responses.
   • DA fine-tuned model that is trained on historical customer service conversations.
   Reveal Solution Discussion Select an answer first
5. 19application · medium

   An e-commerce company wants to automate order processing: reading incoming order emails, extracting product and shipping details, and updating the inventory system. Which approach best fits this requirement?

   • ADeploy a single large language model that is prompted to perform all steps in one go.
   • BTrain a custom model from scratch on order emails to directly output inventory updates.
   • CUse a simple keyword-matching script to parse emails and manually update inventory.
   • DCreate an AI agent that uses a language model to interpret emails and calls APIs to update inventory.
   Reveal Solution Discussion Select an answer first
6. 20expert · hard

   A company wants to deploy an AI agent that can book meetings, send emails, and update CRM records. They are concerned about the agent making irreversible mistakes. What is the most important safeguard to implement?

   • AImplement a human-in-the-loop approval step for actions that are difficult to undo.
   • BUse the most powerful foundation model to ensure the agent understands instructions perfectly.
   • CSet up extensive logging of all agent actions for post-hoc analysis.
   • DGive the agent access to all company systems to maximize its capabilities.
   Reveal Solution Discussion Select an answer first