AI for Everyone - AI for Business Owners
An AI system for fraud detection flagged many transactions as fraudulent, but most were legitimate. What is the likely issue?
An AI system for fraud detection flagged many transactions as fraudulent, but most were legitimate. What is the likely issue?
medium📝 Analysis Q14 of 15
Step-by-Step Solution
Solution:
Step 1: Analyze the problem with flagged transactions
Many legitimate transactions flagged means false positives are high.Step 2: Identify cause and fix
Improving training data quality can reduce false positives.Final Answer:
The AI model has a high false positive rate and needs better training data -> Option CQuick Check:
High false positives = need better training [OK]
Quick Trick: Too many false alerts mean training data needs improvement [OK]
Common Mistakes:
MISTAKES- Assuming AI is always perfect
- Blaming internet connection
- Thinking AI ignores data
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