Business Services AI Business Services 4 — Questions and Answers
Question 1: Which AI service helps businesses automatically categorize and route incoming support tickets?
- Natural language classification models (Correct answer)
- Computer vision pipelines
- Genetic algorithms
- Time series forecasting
Correct answer: Natural language classification models
NLP classification assigns topic labels (billing, technical, shipping) to tickets and routes them to the correct team without human triage.
Question 2: What is the key advantage of using AI for dynamic pricing in retail?
- Adjusting prices in real time based on demand, inventory, and competition data (Correct answer)
- Eliminating the need for a finance department
- Preventing all customer complaints about pricing
- Locking prices for 12-month contracts automatically
Correct answer: Adjusting prices in real time based on demand, inventory, and competition data
AI-driven dynamic pricing continuously analyzes market signals to maximize revenue and competitiveness without manual intervention.
Question 3: Which security concern is specific to AI systems integrated into business workflows?
- Adversarial attacks that manipulate inputs to deceive the AI model (Correct answer)
- Standard SQL injection vulnerabilities
- Physical theft of servers
- Employees forgetting passwords
Correct answer: Adversarial attacks that manipulate inputs to deceive the AI model
Adversarial inputs are specially crafted data designed to fool AI models into making wrong predictions, posing unique risks in sensitive applications.
Question 4: A company says its AI model achieved 95% accuracy on training data but performs poorly in production. What is this called?
- Overfitting, where the model memorized training data instead of generalizing (Correct answer)
- Underfitting due to insufficient model complexity
- Data augmentation failure
- API endpoint misconfiguration
Correct answer: Overfitting, where the model memorized training data instead of generalizing
Overfitting occurs when a model learns noise in training data, causing it to fail on new, unseen real-world data.
Question 5: What is 'retrieval-augmented generation' (RAG) used for in enterprise AI services?
- Grounding LLM responses with up-to-date company documents to reduce hallucinations (Correct answer)
- Training a model from scratch on proprietary data
- Automating payroll processing
- Replacing search engines entirely
Correct answer: Grounding LLM responses with up-to-date company documents to reduce hallucinations
RAG retrieves relevant documents from a company knowledge base and feeds them into the LLM prompt, improving accuracy and factual grounding.
Question 6: Which compliance framework most directly governs AI use in hiring decisions in the US?
- Equal Employment Opportunity (EEO) laws and EEOC guidance on AI screening tools (Correct answer)
- HIPAA medical privacy rules
- PCI-DSS payment card standards
- SOC 2 audit frameworks
Correct answer: Equal Employment Opportunity (EEO) laws and EEOC guidance on AI screening tools
EEOC guidance and EEO laws require that AI-assisted hiring tools not produce disparate impact on protected classes.
Question 7: What does 'model drift' mean in a deployed business AI system?
- The model's predictive accuracy degrades over time as real-world patterns change (Correct answer)
- The model's file size grows after deployment
- The API response time increases under load
- Employees stop using the AI tool
Correct answer: The model's predictive accuracy degrades over time as real-world patterns change
As customer behavior, markets, or data distributions shift, the model's training-time assumptions become stale, reducing performance.
Which AI service helps businesses automatically categorize and route incoming support tickets?