AI Trustworthiness, Ethical and Societal Implications (e.g., ESG) AAIR Practice Questions (Page 2)

Questions 6–10

1. 6application · medium

   An agricultural technology company has developed an AI system that uses drone imagery to optimize pesticide application, reducing chemical use by 20%. However, the system requires high-resolution imagery that is expensive to obtain, potentially favoring large farms over small family farms. The company's leadership is reviewing the societal impact. Which of the following is the most significant societal concern?

   • AThe system could exacerbate economic inequality between large and small farms, potentially driving small farms out of business.
   • BThe reduction in pesticide use could lead to lower crop yields if the system's recommendations are not perfectly accurate.
   • CThe system's reliance on drone technology could lead to job losses for agricultural workers who previously performed manual scouting.
   • DThe company may face legal challenges from farmers who feel the system's pricing is unfair.
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2. 7foundation · easy

   Which of the following is an example of a societal implication of an AI system?

   • AAn AI system that improves the accuracy of weather forecasts.
   • BAn AI hiring tool that inadvertently discriminates against certain demographic groups.
   • CAn AI system that reduces the cost of customer service for a company.
   • DAn AI system that increases the speed of data processing.
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4. 8expert · hard

   A manufacturing company is using an AI system to optimize its energy consumption in its factories. The system has successfully reduced energy use by 15%, contributing to the company's 'E' in ESG. However, the AI system's optimization has also led to a more unpredictable production schedule, causing stress and overtime for factory workers. The company's ESG committee is reviewing this trade-off. Which action best addresses the conflict between the 'E' and 'S' pillars of ESG?

   • AModify the AI system's objective function to include a constraint that limits schedule variability, accepting a slightly lower energy reduction.
   • BDisable the AI system and return to the previous, less efficient but more predictable scheduling process.
   • CKeep the AI system as-is to maximize energy savings and offer workers additional compensation for the unpredictable hours.
   • DReport the energy savings and the worker impact separately in the ESG report, letting stakeholders decide which is more important.
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5. 9foundation · easy

   What is the primary purpose of ethical AI frameworks in the context of AI risk governance?

   • ATo ensure that AI systems are as fast and efficient as possible.
   • BTo provide a structured approach for identifying, assessing, and mitigating ethical risks associated with AI systems.
   • CTo guarantee that AI systems will never make mistakes.
   • DTo replace all other risk management processes in the organization.
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6. 10expert · hard

   A global consumer goods company is deploying an AI system to personalize marketing campaigns. The company operates in multiple regions with varying regulations and cultural norms. The AI risk team has identified that a marketing campaign that is effective in one region could be considered manipulative or offensive in another. The company's governance structure is centralized, with a single global risk committee. Which approach best manages this risk while respecting regional differences?

   • AApply the strictest regional regulation globally to all marketing campaigns to ensure compliance and avoid any risk of offense.
   • BDelegate all AI ethics decisions to regional risk teams, allowing them to tailor the system's use to their local context without global oversight.
   • CDevelop a global AI ethics policy that sets minimum standards, and require regional risk teams to conduct local impact assessments and escalate any deviations to the global committee.
   • DProhibit the use of AI for marketing personalization in any region until a single, globally acceptable set of guidelines is developed.
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