IAPP Exam CIPP-US Topic 5 Question 4 Discussion

Actual exam question for IAPP's CIPP-US exam

Question #: 4
Topic #: 5

Acme Student Loan Company has developed an artificial intelligence algorithm that determines whether an individual is likely to pay their bill or default. A person who is determined by the algorithm to be more likely to default will receive frequent payment reminder calls, while those who are less likely to default will not receive payment reminders.

Which of the following most accurately reflects the privacy concerns with Acme Student Loan Company using

artificial intelligence in this manner?

AIf the algorithm uses risk factors that impact the automatic decision engine. Acme must ensure that the algorithm does not have a disparate impact on protected classes in the output.

BIf the algorithm makes automated decisions based on risk factors and public information, Acme need not determine if the algorithm has a disparate impact on protected classes.

CIf the algorithm's methodology is disclosed to consumers, then it is acceptable for Acme to have a disparate impact on protected classes.

DIf the algorithm uses information about protected classes to make automated decisions, Acme must ensure that the algorithm does not have a disparate impact on protected classes in the output.

Show Suggested Answer

Suggested Answer: B

by Britt at May 05, 2022, 05:42 PM

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