AI0-001 AI Governance and Ethics Practice Question
A financial institution wants to use AI for loan approvals and must comply with fair lending laws. Which TWO practices should the institution adopt to mitigate bias and ensure compliance?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Apply fairness-aware machine learning techniques during model training
To mitigate bias, using fairness-aware algorithms and conducting disparate impact analysis are direct steps. Using only demographic data is illegal (redlining). Removing all features reduces model utility. A black-box model without explanation would hinder compliance.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Remove all features except credit score to avoid bias
Why it's wrong here
While reducing features may help, removing all but credit score ignores other relevant factors and may not be optimal.
- ✗
Use a black-box model without explainability to protect intellectual property
Why it's wrong here
Lack of explainability hinders compliance with fair lending laws and transparency requirements.
- ✗
Use only demographic features to ensure equal treatment
Why it's wrong here
Using only demographic features may lead to discrimination and violate fair lending laws.
- ✓
Apply fairness-aware machine learning techniques during model training
Why this is correct
Fairness-aware algorithms can reduce bias during training.
- ✓
Conduct disparate impact analysis on model outcomes
Why this is correct
Disparate impact analysis is required to detect adverse effects on protected groups.
About these practice questions
Courseiva writes every AI0-001 question from scratch — 754 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This AI0-001 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AI0-001 exam.