A bank's AI governance policy requires that all high-impact AI models undergo an ethical impact assessment before deployment. The assessment for a mortgage pricing model reveals that the model relies heavily on neighborhood characteristics that correlate with race. What is the MOST appropriate next step?
Select an answer to reveal the explanation.
Short Explanation and Infographic
Here's the deal — b is correct because when features correlate with protected attributes (race via neighborhood), the appropriate response is a rigorous disparate impact analysis to quantify the effect, followed by feature remediation (removing proxies or applying fairness constraints) and revalidation — not deployment with disclaimers or arbitrary weight caps. A ignores well-established anti-discrimination law on disparate impact.
Full explanation below image
Full Explanation
B is correct because when features correlate with protected attributes (race via neighborhood), the appropriate response is a rigorous disparate impact analysis to quantify the effect, followed by feature remediation (removing proxies or applying fairness constraints) and revalidation — not deployment with disclaimers or arbitrary weight caps. A ignores well-established anti-discrimination law on disparate impact. C and D are insufficient responses to a potential legal violation.