A financial institution uses an AI system to approve loan applications. Recently, there have been complaints that the system disproportionately denies loans to applicants from certain minority…

The correct answer is A. Fairness and Non-Discrimination. The most relevant core principle here is Fairness and Non-Discrimination. This principle aims to ensure that AI systems do not create or perpetuate bias, especially in high-stakes decision- making areas such as financial services. According to ISO/IEC 42001:2023 - Clause 6.1.2…

AI Management System Principles and Core Elements

Question

A financial institution uses an AI system to approve loan applications. Recently, there have been complaints that the system disproportionately denies loans to applicants from certain minority groups. Which core element should the institution prioritize to address these complaints?

Options

AFairness and Non-Discrimination
BTransparency and Explainability
CAccountability
DPrivacy and Security

How the community answered

(24 responses)

A
71% (17)
B
8% (2)
C
4% (1)
D
17% (4)

Explanation

The most relevant core principle here is Fairness and Non-Discrimination. This principle aims to ensure that AI systems do not create or perpetuate bias, especially in high-stakes decision- making areas such as financial services. According to ISO/IEC 42001:2023 - Clause 6.1.2 and Annex A (A.8.2.4), organizations must evaluate and manage risks related to bias, discrimination, and ethical implications of AI decisions. In the PECB Lead Auditor Guide, Fairness is cited as critical in sectors like finance, hiring, healthcare, and where decisions may adversely impact protected groups.

Topics

#fairness#non-discrimination#algorithmic bias#AIMS core elements

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