CAS-005 · Question #36
CAS-005 Question #36: Real Exam Question with Answer & Explanation
The correct answer is A: Model explainability. Model explainability is a major concern from a regulatory perspective, particularly when AI is used to make critical decisions like loan rates. Regulatory bodies require that organizations be able to explain how decisions are made by AI models, especially when they impact financi
Question
A financial services organization is using AI to fully automate the process of deciding client loan rates. Which of the following should the organization be most concerned about from a regulatory perspective?
Options
- AModel explainability
- BCredential Theft
- CPossible prompt Injections
- DExposure to social engineering
Explanation
Model explainability is a major concern from a regulatory perspective, particularly when AI is used to make critical decisions like loan rates. Regulatory bodies require that organizations be able to explain how decisions are made by AI models, especially when they impact financial outcomes. Without transparency into how the model arrives at its decisions, the organization could face regulatory scrutiny for potential biases, fairness issues, and lack of accountability.
Community Discussion
No community discussion yet for this question.