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CSEET · Economic and Business Environment · AI and Business Environment

A company uses a generative AI chatbot for customer queries and an AI tool to shortlist job applicants. Which statement about the risks of these business applications is most accurate?

Biased training data can make a shortlisting tool produce discriminatory results, so human oversight is needed. AI reflects patterns in its data and is not automatically neutral. Chatbots still handle personal data, and the deploying company stays accountable for decisions made using the tools.

  1. ABiased training data can lead the shortlisting tool to produce discriminatory outcomes, so human oversight is neededCorrect
  2. BBecause the tool is automated, its outcomes are always free of bias
  3. CChatbots remove the need for any data protection safeguards
  4. DResponsibility for AI decisions rests only with the software vendor and never with the company

Explanation

AI learns from historical data, which may embed bias, so hiring tools can discriminate and need human oversight and audits. Automation does not guarantee neutrality, chatbots handle personal data needing safeguards, and the deploying company remains accountable for its use.

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