ISACA Certified Artificial Intelligence Auditor (CAIA) — Question 28

A car insurance company uses an AI model to determine customer premiums. To ensure the ethical use of this model, which of the following testing practices should the company consider to be MOST important?

Answer options

• A. Running model performance tests on randomized data to improve the model's accuracy
• B. Ensuring demographic data is not used to train models outside of the defined use case
• C. Testing to ensure the model’s predictions do not discriminate based on age or gender
• D. Deploying the model only for a small randomly selected group of existing customers

Correct answer: C

Explanation

The correct answer, C, emphasizes the importance of fairness in AI by ensuring that the model's predictions do not lead to discrimination based on age or gender. While options A and B focus on accuracy and data usage, they do not directly address ethical implications. Option D is about limited deployment but does not ensure ethical considerations in model predictions.