QuestionQ190
The U.S. Privacy EnvironmentAcme Student Loan Company developed an artificial-intelligence algorithm to determine whether an individual is likely to pay their bill or default. A person the algorithm determines is more likely to default will receive frequent payment-reminder calls, whereas those determined less likely to default will not receive payment reminders.
Which of the following most accurately describes the privacy concerns with Acme Student Loan Company using artificial intelligence in this way?
- A If the algorithm uses risk factors that impact the automatic decision engine. Acme must ensure that the algorithm does not have a disparate impact on protected classes in the output.
- B If the algorithm makes automated decisions based on risk factors and public information, Acme need not determine if the algorithm has a disparate impact on protected classes.
- C If the algorithm’s methodology is disclosed to consumers, then it is acceptable for Acme to have a disparate impact on protected classes.
- D If the algorithm uses information about protected classes to make automated decisions, Acme must ensure that the algorithm does not have a disparate impact on protected classes in the output.
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