AI Associate AI Fundamentals Practice Question
A company uses an AI model to predict customer churn. The model's predictions are used to automatically assign discounts to high-risk customers. A customer complains about receiving a discount offer they did not request. Which ethical concern is most relevant?
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
✓
Lack of transparency of AI decisions to customers
Transparency about AI decisions is key. Customers should be informed when an AI system is making decisions that affect them.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Bias in training data
Why it's wrong here
Bias might cause unfair offers but the complaint is about lack of awareness of AI-driven decision.
- ✗
Model overfitting
Why it's wrong here
Overfitting is a technical issue, not directly about customer notification.
- ✗
Data quality
Why it's wrong here
Poor data quality may cause inaccurate predictions, but the complaint is about transparency.
- ✓
Lack of transparency of AI decisions to customers
Why this is correct
Correct: customers should be informed that the discount was AI-generated and why.
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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.