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Free IAPP AIGP Exam Questions (page: 3)

Page 3 of 34
PDF with 164 Questions

CASE STUDY
Please use the following answer the next question:

ABC Corp, is a leading insurance provider offering a range of coverage options to individuals. ABC has decided to utilize artificial intelligence to streamline and improve its customer acquisition and underwriting process, including the accuracy and efficiency of pricing policies. ABC has engaged a cloud provider to utilize and fine-tune its pre-trained, general purpose large language model ("LLM"). In particular, ABC intends to use its historical customer data--including applications, policies, and claims--and proprietary pricing and risk strategies to provide an initial qualification assessment of potential customers, which would then be routed t

  1. human underwriter for final review.
    ABC and the cloud provider have completed training and testing the LLM, performed a readiness assessment, and made the decision to deploy the LLM into production. ABC has designated an internal compliance team to monitor the model during the first month, specifically to evaluate the accuracy, fairness, and reliability of its output. After the first month in production, ABC realizes that the LLM declines a higher percentage of women's loan applications due primarily to women historically receiving lower salaries than men.
    The best approach to enable a customer who wants information on the Al model's parameters for underwriting purposes is to provide?
  2. A transparency notice.
  3. An opt-out mechanism.
  4. Detailed terms of service.
  5. Customer service support.

Answer(s): A

Explanation:

The best approach to enable a customer who wants information on the AI model's parameters for underwriting purposes is to provide a transparency notice. This notice should explain the nature of the AI system, how it uses customer data, and the decision-making process it follows. Providing a transparency notice is crucial for maintaining trust and compliance with regulatory requirements regarding the transparency and accountability of AI systems.


Reference:

According to the AIGP Body of Knowledge, transparency in AI systems is essential to ensure that stakeholders, including customers, understand how their data is being used and how decisions are made. This aligns with ethical principles of AI governance, ensuring that customers are informed and can make knowledgeable decisions regarding their interactions with AI systems.



CASE STUDY
Please use the following answer the next question:
ABC Corp, is a leading insurance provider offering a range of coverage options to individuals. ABC has decided to utilize artificial intelligence to streamline and improve its customer acquisition and underwriting process, including the accuracy and efficiency of pricing policies. ABC has engaged a cloud provider to utilize and fine-tune its pre-trained, general purpose large language model ("LLM"). In particular, ABC intends to use its historical customer data--including applications, policies, and claims--and proprietary pricing and risk strategies to provide an initial qualification assessment of potential customers, which would then be routed a human underwriter for final review.

ABC and the cloud provider have completed training and testing the LLM, performed a readiness assessment, and made the decision to deploy the LLM into production. ABC has designated an internal compliance team to monitor the model during the first month, specifically to evaluate theaccuracy, fairness, and reliability of its output. After the first month in production, ABC realizes that the LLM declines a higher percentage of women's loan applications due primarily to women historically receiving lower salaries than men.
Which of the following is the most important reason to train the underwriters on the model prior to deployment?

  1. Toprovide a reminder of a right appeal.
  2. Tosolicit on-going feedback on model performance.
  3. Toapply their own judgment to the initial assessment.
  4. Toensure they provide transparency applicants on the model.

Answer(s): C

Explanation:

Training underwriters on the model prior to deployment is crucial so they can apply their own judgment to the initial assessment.
While AI models can streamline the process, human judgment is still essential to catch nuances that the model might miss or to account for any biases or errors in the model's decision-making process.


Reference:

The AIGP Body of Knowledge emphasizes the importance of human oversight in AI systems, particularly in high-stakes areas such as underwriting and loan approvals. Human underwriters can provide a critical review and ensure that the model's assessments are accurate and fair, integrating their expertise and understanding of complex cases.



CASE STUDY
Please use the following answer the next question:
ABC Corp, is a leading insurance provider offering a range of coverage options to individuals. ABC has decided to utilize artificial intelligence to streamline and improve its customer acquisition and underwriting process, including the accuracy and efficiency of pricing policies. ABC has engaged a cloud provider to utilize and fine-tune its pre-trained, general purpose large language model ("LLM"). In particular, ABC intends to use its historical customer data--including applications, policies, and claims--and proprietary pricing and risk strategies to provide an initial qualification assessment of potential customers, which would then be routed .. human underwriter for final review.
ABC and the cloud provider have completed training and testing the LLM, performed a readiness assessment, and made the decision to deploy the LLM into production. ABC has designated an internal compliance team to monitor the model during the first month, specifically to evaluate the accuracy, fairness, and reliability of its output. After the first month in production, ABC realizes that the LLM declines a higher percentage of women's loan applications due primarily to women historically receiving lower salaries than men.
During the first month when ABC monitors the model for bias, it is most important to?

  1. Continue disparity testing.
  2. Analyze the quality of the training and testing data.
  3. Compare the results to human decisions prior to deployment.
  4. Seek approval from management for any changes to the model.

Answer(s): A

Explanation:

During the first month of monitoring the model for bias, it is most important to continue disparity testing. Disparity testing involves regularly evaluating the model's decisions to identify and address any biases, ensuring that the model operates fairly across different demographic groups.


Reference:

Regular disparity testing is highlighted in the AIGP Body of Knowledge as a critical practice for maintaining the fairness and reliability of AI models. By continuously monitoring for and addressing disparities, organizations can ensure their AI systems remain compliant with ethical and legal standards, and mitigate any unintended biases that may arise in production.



CASE STUDY
Please use the following answer the next question:
ABC Corp, is a leading insurance provider offering a range of coverage options to individuals. ABC has decided to utilize artificial intelligence to streamline and improve its customer acquisition and underwriting process, including the accuracy and efficiency of pricing policies. ABC has engaged a cloud provider to utilize and fine-tune its pre-trained, general purpose large language model ("LLM"). In particular, ABC intends to use its historical customer data--including applications, policies, and claims--and proprietary pricing and risk strategies to provide an initial qualification assessment of potential customers, which would then be routed t

  1. human underwriter for final review.
    ABC and the cloud provider have completed training and testing the LLM, performed a readiness assessment, and made the decision to deploy the LLM into production. ABC has designated an internal compliance team to monitor the model during the first month, specifically to evaluate the accuracy, fairness, and reliability of its output. After the first month in production, ABC realizes that the LLM declines a higher percentage of women's loan applications due primarily to women historically receiving lower salaries than men.
    Each of the following steps would support fairness testing by the compliance team during the first month in production EXCEPT?
  2. Validating a similar level of decision-making across different demographic groups.
  3. Providing the loan applicants with information about the model capabilities and limitations.
  4. Identifying if additional training data should be collected for specific demographic groups.
  5. Using tools to help understand factors that may account for differences in decision-making.

Answer(s): B

Explanation:

Providing the loan applicants with information about the model capabilities and limitations would not directly support fairness testing by the compliance team. Fairness testing focuses on evaluating the model's decisions for biases and ensuring equitable treatment across different demographic groups, rather than informing applicants about the model.


Reference:

The AIGP Body of Knowledge outlines that fairness testing involves technical assessments such as validating decision-making consistency across demographics and using tools to understand decision factors.
While transparency to applicants is important for ethical AI use, it does not contribute directly to the technical process of fairness testing.



CASE STUDY
Please use the following answer the next question:
ABC Corp, is a leading insurance provider offering a range of coverage options to individuals. ABC has decided to utilize artificial intelligence to streamline and improve its customer acquisition and underwriting process, including the accuracy and efficiency of pricing policies. ABC has engaged a cloud provider to utilize and fine-tune its pre-trained, general purpose large language model ("LLM"). In particular, ABC intends to use its historical customer data--including applications, policies, and claims--and proprietary pricing and risk strategies to provide an initialqualification assessment of potential customers, which would then be routed a human underwriter for final review.
ABC and the cloud provider have completed training and testing the LLM, performed a readiness assessment, and made the decision to deploy the LLM into production. ABC has designated an internal compliance team to monitor the model during the first month, specifically to evaluate the accuracy, fairness, and reliability of its output. After the first month in production, ABC realizes that the LLM declines a higher percentage of women's loan applications due primarily to women historically receiving lower salaries than men.
What is the best strategy to mitigate the bias uncovered in the loan applications?

  1. Retrain the model with data that reflects demographic parity.
  2. Procure a third-party statistical bias assessment tool.
  3. Document all instances of bias in the data set.
  4. Delete all gender-based data in the data set.

Answer(s): A

Explanation:

Retraining the model with data that reflects demographic parity is the best strategy to mitigate the bias uncovered in the loan applications. This approach addresses the root cause of the bias by ensuring that the training data is representative and balanced, leading to more equitable decision- making by the AI model.


Reference:

The AIGP Body of Knowledge stresses the importance of using high-quality, unbiased training data to develop fair and reliable AI systems. Retraining the model with balanced data helps correct biases that arise from historical inequalities, ensuring that the AI system makes decisions based on equitable criteria.



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