Evaluate the Costs and Benefits of an AI-powered Business Solution AB-100 Practice Questions (Page 1)

Questions 1–5

1. 1application · medium

   A manufacturing company wants to deploy an AI-powered quality-inspection system on its production line. The CFO asks for a financial evaluation that includes the cost of the AI software, the hardware upgrades needed to run it, the time engineers spend integrating it with existing equipment, and the expected reduction in defective units. Which ROI criteria should the architect prioritize to give the CFO a complete financial picture?

   • AInitial license cost and payback period only
   • BHardware upgrade cost and employee training time
   • CTotal cost of ownership (TCO) and the value of defect reduction
   • DAnnual maintenance fees and customer satisfaction scores
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2. 2application · medium

   A healthcare provider is evaluating an AI solution to automate patient appointment scheduling. The solution will reduce the time administrative staff spend on phone calls. The provider needs to compare the cost of the AI solution against the value of the staff time saved. Which ROI criteria should be used?

   • AThe implementation time and the number of staff trained
   • BThe cost of the AI solution and the monetary value of the staff hours saved
   • CThe number of appointments scheduled and the patient satisfaction score
   • DThe accuracy of the AI model and the number of missed appointments
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4. 3expert · hard · select all that apply

   A company is evaluating an AI solution for automated report generation. The solution will reduce manual effort by 1,000 hours per year. The loaded cost of an analyst is $60 per hour. The solution costs $40,000 per year. The company is also considering a build option that would cost $100,000 upfront but only $10,000 per year to operate. Which of the following statements are true? (Select all that apply.)

   • AThe build option has a higher upfront cost but lower annual operating cost
   • BThe buy option has a positive net annual benefit of $20,000
   • CThe buy option has a lower total cost over three years than the build option
   • DThe build option breaks even in the first year
   • EThe build option has a higher total cost over three years than the buy option
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5. 4expert · medium

   A company is evaluating an AI solution to automate report generation. The solution will cost $100,000 to implement and $20,000 per year to maintain. It will save the company $60,000 per year in analyst time. The company uses a 3-year evaluation period. What is the total cost of ownership over 3 years?

   • A$100,000
   • B$120,000
   • C$160,000
   • D$180,000
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6. 5expert · medium

   A company is evaluating an AI solution to improve customer retention. The solution will cost $50,000 per year. The company expects the solution to reduce customer churn by 2%. The company has 100,000 customers, and the average customer lifetime value is $500. What is the annual benefit of the solution in terms of retained customer value?

   • A$50,000
   • B$500,000
   • C$100,000
   • D$1,000,000
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