A retail bank's AI model for mortgage origination has been in production for 14 months. The risk team runs a quarterly performance review and notices the model's Gini coefficient has declined from 0.72 to 0.61. What action is MOST appropriate?
Select an answer to reveal the explanation.
Short Explanation and Infographic
Here's the deal — b is correct because a Gini coefficient decline from 0.72 to 0.61 represents meaningful degradation in the model's discriminative ability—the model is significantly less effective at separating good from bad borrowers. The appropriate response is a structured investigation of root causes before deciding on remediation.
Full explanation below image
Full Explanation
B is correct because a Gini coefficient decline from 0.72 to 0.61 represents meaningful degradation in the model's discriminative ability—the model is significantly less effective at separating good from bad borrowers. The appropriate response is a structured investigation of root causes before deciding on remediation. A (accept and monitor) is inappropriate for a significant performance decline in a high-stakes lending model. C (immediate decommission) is disproportionate without investigation. D (hyperparameter tuning) is not the appropriate response to performance degradation caused by data or concept drift—retraining on updated data, not tuning existing parameters, is typically required.