AI Associate AI Fundamentals Practice Question
A bank is implementing an AI system to approve small business loans. Which TWO ethical considerations should be addressed?
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
✓
Ensure training data does not contain historical biases against certain demographics
Bias in training data can lead to unfair denials; transparency ensures customers understand AI decisions. Accuracy is important but not primarily an ethical issue.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Ensure training data does not contain historical biases against certain demographics
Why this is correct
Biased data can lead to discriminatory loan decisions.
- ✗
Use as many data points as possible to improve predictions
Why it's wrong here
More data can increase bias and privacy risks if not handled carefully.
- ✗
Replace all human loan officers with AI
Why it's wrong here
Human oversight is often needed for fairness and accountability.
- ✓
Provide explanations to customers when AI denies a loan
Why this is correct
Transparency is key for fairness and regulatory compliance.
- ✗
Maximize model accuracy at all costs
Why it's wrong here
Accuracy is important but not the primary ethical concern; trade-offs exist.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This AI Associate practice question is part of Courseiva's free Salesforce 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 AI Associate exam.