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CSEET · Economic and Business Environment · AI and Business Environment

An Indian e-commerce firm uses AI chatbots to answer customer queries round the clock. Which is the most relevant data-related risk it must manage?

The most relevant risk is privacy and security of customers' personal data. Chatbots collect and process personal details, so the firm must protect them and comply with data protection requirements. Exchange rates, repo rate changes and agricultural output are macroeconomic matters unrelated to chatbot data handling.

  1. APrivacy and security of customers' personal data processed by the systemCorrect
  2. BFluctuation in the exchange rate of the rupee
  3. CChange in the repo rate
  4. DSeasonal fall in agricultural output

Explanation

Chatbots collect and process personal information such as names, contacts and order details, so data privacy and security, including data protection law compliance, is the key risk. The other options are macroeconomic factors not specific to chatbot use.

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