Artificial Intelligence — CBSE Class 10 board question

Example of AI Bias — Healthcare Algorithm

A company developed an AI algorithm to identify high-risk patients for better resource allocation. The algorithm was trained on healthcare expense data instead of actual illness data. Since less money was spent on patients from the western region, the algorithm underestimated their health risk, causing them to receive less care despite being more severely ill than patients from other regions.

Source: Case Study, Chapter 1

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• Examiners look for: (1) a clear, specific example and (2) explanation of why the bias occurred — both needed for full 2 marks.
• The key cause here is biased/proxy training data (expenses used instead of actual health metrics), which led to unfair outcomes for one group.
• Avoid vague statements like "the data was wrong" — name the specific problem (wrong metric used for training).