An AI governance board is reviewing the organization's AI risk appetite statement. Which element MOST appropriately belongs in an AI-specific risk appetite statement?
Select an answer to reveal the explanation.
Short Explanation and Infographic
Here's the deal — b is correct because an AI risk appetite statement should define quantitative thresholds for acceptable error rates, differentiated by the impact level of the decisions the AI makes. For example, a higher false negative tolerance may be acceptable for a marketing recommendation AI but not for a medical diagnosis AI.
Full explanation below image
Full Explanation
B is correct because an AI risk appetite statement should define quantitative thresholds for acceptable error rates, differentiated by the impact level of the decisions the AI makes. For example, a higher false negative tolerance may be acceptable for a marketing recommendation AI but not for a medical diagnosis AI. This directly expresses the organization's willingness to accept AI-related risk. Development plans (A) and budgets (C) are strategic planning elements. Approved use cases (D) are a governance list, not a risk appetite expression.