Which statement best describes a potential economic harm from AI integration?

Prepare for the IAPP AI Governance Test with our study tools, including flashcards and multiple-choice questions. Each question comes with helpful hints and explanations to boost your readiness.

A potential economic harm from AI integration is best described by the statement regarding litigation costs and punitive damages. As organizations increasingly adopt AI technologies, they may face legal challenges stemming from issues such as data privacy violations, algorithmic bias, or regulatory compliance failures. These legal battles can result in substantial costs not only from litigation itself but also in terms of settlements and punitive damages awarded by courts.

In contrast, the other options focus on positive outcomes associated with AI integration. Improved customer satisfaction and increased operational efficiency are typically viewed as beneficial effects of using AI, enhancing business performance and driving revenue growth. Additionally, enhanced job opportunities can arise from the new roles created by AI development and deployment, which can also be considered a positive consequence rather than a harm. Therefore, the statement about litigation costs captures a significant risk involved in AI integration that could lead to substantial economic drawbacks for organizations.

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