The best approach to enable a customer who wants information on the Al model’s parameters for underwriting purposes is to provide?

CASE STUDY

Please use the following answer the next question:

ABC Corp, is a leading insurance provider offering a range of coverage options to individuals. ABC has decided to utilize artificial intelligence to streamline and improve its customer acquisition and underwriting process, including the accuracy and efficiency of pricing policies.

ABC has engaged a cloud provider to utilize and fine-tune its pre-trained, general purpose large language model (“LLM”). In particular, ABC intends to use its historical customer data―including applications, policies, and claims―and proprietary pricing and risk strategies to provide an initial qualification assessment of potential customers, which would then be routed t

A. human underwriter for final review.

ABC and the cloud provider have completed training and testing the LLM, performed a readiness assessment, and made the decision to deploy the LLM into production. ABC has designated an internal compliance team to monitor the model during the first month, specifically to evaluate the accuracy, fairness, and reliability of its output. After the first month in production, ABC realizes that the LLM declines a higher percentage of women’s loan applications due primarily to women historically receiving lower salaries than men.

The best approach to enable a customer who wants information on the Al model’s parameters for underwriting purposes is to provide?

A. A transparency notice.

B. An opt-out mechanism.

C. Detailed terms of service.

D. Customer service support.

View Answer

Answer: A

Explanation:

The best approach to enable a customer who wants information on the AI model’s parameters for underwriting purposes is to provide a transparency notice. This notice should explain the nature of the AI system, how it uses customer data, and the decision-making process it follows. Providing a transparency notice is crucial for maintaining trust and compliance with regulatory requirements regarding the transparency and accountability of AI systems.

Reference: According to the AIGP Body of Knowledge, transparency in AI systems is essential to ensure that stakeholders, including customers, understand how their data is being used and how decisions are made. This aligns with ethical principles of AI governance, ensuring that customers are informed and can make knowledgeable decisions regarding their interactions with AI systems.