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ACCA Strategic Professional · Strategic Business Leader · Machine learning, AI and robotics

Brightwell Retail uses an AI engine that recommends personalised offers to online customers. Sales rose, but the board notices complaints that older customers are rarely shown discounts. Which implication is most appropriate for the board to draw?

The board should recognise that the model may have learned bias from historic data and put governance in place, such as fairness testing and human oversight. Commercial success does not remove ethical, reputational and legal risks, and AI outputs are not automatically objective.

  1. AThe model may have learned bias from historic data, so governance should include fairness testing and human oversightCorrect
  2. BThe result proves the AI is objective, so no further action is needed
  3. CThe complaints should be ignored because sales have increased
  4. DThe AI should be replaced with robotic process automation, which cannot be biased

Explanation

AI trained on historic data can reproduce bias, creating ethical, reputational and possible legal risk. The board should require monitoring, fairness testing and human oversight. Sales growth does not justify ignoring stakeholder harm, and RPA does not address the personalisation need.

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