AI Associate Ethical Considerations of AI Practice Question
A financial institution uses an AI system to approve loan applications. The system denies loans to applicants from certain postal codes at a higher rate. The model includes 'postal code' as a feature. Which ethical consideration is most directly violated?
⚠ Common exam trap
Salesforce often tests the distinction between fairness and transparency, where candidates mistakenly choose transparency because they think the model's use of postal code is 'hidden' or not explainable, but the core violation is the discriminatory outcome, not the lack of explanation.
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
✓
Fairness
The AI system's use of 'postal code' as a feature leads to disparate impact on applicants from certain areas, directly violating the ethical principle of fairness. Fairness requires that AI models do not discriminate against protected groups or perpetuate systemic biases, even if the feature itself is not a protected attribute. By denying loans at a higher rate based on postal code, the system is likely engaging in proxy discrimination, which is a core fairness violation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Fairness
Why this is correct
Disparate impact based on postal code violates fairness principles.
- ✗
Privacy
Why it's wrong here
Privacy is about data protection, not discriminatory impact.
- ✗
Accountability
Why it's wrong here
Accountability is about oversight, not the specific ethical breach.
- ✗
Transparency
Why it's wrong here
Transparency relates to model interpretability, not the unfair outcome.
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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.