Subdomain 1.1: Introduction to AI
1.A financial institution deploys an AI trading bot that continuously updates its internal weights based on real-time market data without human intervention. After three weeks, the bot begins making erratic trades that it did not make during pre-deployment testing. Which characteristic of the AI system is most directly responsible for this post-deployment behavior change?
- A.Symbolic logic
- B.Adaptivity
- C.Explainability
- D.Determinism
Show answer & explanation
Correct answer: B — Adaptivity
- A. Symbolic logic refers to AI based on formal logic and explicit rules (e.g., if-then statements). It does not typically involve the continuous updating of internal weights through learning from data stream, and thus is not the cause of the described behavior.
- B. Correct. Adaptivity is the ability of an AI system to change its internal state, weights, or behavior based on new data or experience. Since the bot continuously updates its internal parameters from real-time market data, this adaptation leads to behavior changes that may diverge from the state observed during initial pre-deployment testing.
- C. Explainability refers to how well the decisions of an AI system can be understood or interpreted by humans. While a lack of explainability might make it difficult to diagnose why the trades are erratic, it is not the underlying mechanism that causes the behavior to change over time.
- D. Determinism implies that the same input will always produce the same output. The scenario describes a system whose logic evolves over time, which often leads to different outputs for the same market conditions as the internal weights change, signifying a shift away from static deterministic rules.