A financial services company uses a machine learning model to automatically reject credit card transactions suspected of fraud. The model was trained on transaction data from the past two years. Over the last three months, the model's false positive rate has increased significantly, causing legitimate transactions to be declined and leading to customer complaints. The company needs to restore the model's accuracy quickly. Initial analysis shows that the distribution of transaction amounts and locations has shifted compared to the training period. The data science team is under pressure to deploy an update within a week. Which approach should they take to most effectively address the issue while adhering to responsible AI guidelines?
Retraining on recent data adapts to drift and is straightforward.
Why this answer
The most effective approach is to retrain the model using recent data (last three months) to adapt to the distribution shift, and carefully evaluate for any new biases that may emerge. This directly addresses the drift. Simply adjusting the threshold may not capture new fraud patterns.
Using an ensemble of old and recent models could be complex and may not fully adapt. Deploying a simple rule-based system would be a step backward in capability.