ICAEW SE · Chapter 10 · Question 6 of 10
A company uses a complex artificial intelligence (AI) model to make credit decisions, but cannot explain to rejected applicants why they were declined. Which ethical issue is most directly raised?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Lack of transparency and explainability
Explanation
Many AI systems operate as 'black boxes', making it hard to explain how decisions are reached. This undermines transparency and accountability, makes bias difficult to detect, and can prevent individuals from challenging decisions that affect them. Explainability is a key consideration in the ethical use of AI.
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