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Free AIB-C01 practice test: 30 questions with answers
30 original questions for AWS Certified AI Business Strategist (beta), drawn from every topic area. Answer each one to see whether you got it right and why. No sign-up.
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All 30 AIB-C01 questions with answers
The same questions as the test above, grouped by exam topic. Open any question to see the answer and explanation.
Generative AI use cases and business value (5 questions)
Question 1
A call center wants to reduce average handling time by summarizing each call for the agent's notes. Which generative AI use case does this describe?
- AImage classification
- BDemand forecasting
- CSummarization
- DAnomaly detection on network traffic
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Correct answer: CTurning a long transcript into a short summary is a summarization task that generative models handle well. Anomaly detection, image classification, and forecasting solve different problems.
Question 2
A software company wants to speed up developer onboarding by letting new hires ask questions about internal code and documentation. Which use case best fits?
- AA fraud detection model trained on historical payment transactions to score each card purchase for anomalies in real time at checkout
- BA computer vision system for warehouse shelves that detects stock gaps and misplaced items
- CA time-series forecast of server load across data center clusters using hourly CPU metrics
- DAn internal assistant that uses retrieval over engineering documentation to answer questions with citations
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Correct answer: DQuestion answering over internal documentation with citations is a natural generative AI use case that improves productivity. The other options describe different AI problems.
Question 3
Which two tasks are strong candidates for generative AI assistance in a sales team? (Choose two.)
- ADeciding final pricing approvals without review
- BSummarizing long customer meeting transcripts
- CReplacing contract legal review entirely
- DSetting executive compensation
- EDrafting personalized follow-up emails from CRM notes
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Correct answer: B, EDrafting and summarizing are language tasks where generative models add clear value with human review. Final approvals, legal review, and compensation decisions carry risks that require human accountability.
Question 4
A retailer wants product images to be created from short text descriptions for its catalog. Which generative AI modality is required?
- ATabular regression
- BTime-series anomaly detection
- CImage generation
- DSpeech recognition only
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Correct answer: CCreating images from text prompts is image generation, a generative modality. Speech recognition, tabular regression, and anomaly detection do not produce images.
Question 5
Which two tasks are better suited to a predictive model than to a generative model? (Choose two.)
- ASummarizing customer reviews
- BForecasting next quarter demand for each store from historical sales
- CDrafting a product launch announcement
- DDetecting fraudulent card transactions from payment patterns
- EGenerating alternative marketing slogans
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Correct answer: B, DForecasting and fraud detection predict numbers or classes from historical patterns, which is classical predictive ML. Drafting, slogans, and summaries create or condense text, which suits generative models.
Responsible AI and governance (5 questions)
Question 6
A bank plans to use a model to help decide loan approvals. Which governance step should come first?
- ADefine the decision criteria, assess fairness and regulatory requirements, and document accountable owners
- BLaunch to a small group of customers and monitor complaints
- CTrain the largest available model on all historical loans
- DBuy the model with the lowest per-token price
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Correct answer: BLending decisions carry regulatory and fairness obligations, so criteria, risk assessment, and ownership must be set before deployment. Launching first, choosing by price, or maximizing model size skips those controls.
Question 7
A healthcare organization wants to use generative AI for patient communications. Which safeguard is most important for this use case?
- ARemoving audit logs for generated messages after each send, to limit how long patient-related records are retained
- BPublishing the prompt templates on a public website for transparency and external review
- CSending model outputs directly to patients through the portal without clinician review, to save staff time in daily queues
- DHuman review of outputs before they reach patients, with clear disclosure that content is AI-generated
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Correct answer: DClinical communication requires human oversight and transparency about AI involvement to reduce harm. Publishing prompts, unsupervised sending, and removing logs each undermine safety or accountability.
Question 8
Which two practices help a company reduce bias risk in a generative AI application? (Choose two.)
- AAssume that a larger model removes bias automatically
- BMaintain a feedback channel where users can report harmful or unfair outputs
- CRemove all demographic data from the evaluation set so bias cannot be measured
- DUse only one reviewer who shares the same background
- EEvaluate outputs across different user groups and languages before launch
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Correct answer: B, ETesting across groups and collecting reports from users both surface bias that a single team might miss. Model size does not guarantee fairness, and removing demographic data from evaluation prevents measurement.
Question 9
A media company must be able to explain to regulators how a generated article was produced. Which capability supports this?
- ARetention of prompts, model versions, retrieved sources, and human approvals linked to each output
- BDeleting each article and its drafts from the content management system after publication
- CUsing a different model for every article with no audit records or saved version history
- DHiding the model name and version identifier from editors and reviewers in production
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Correct answer: ATraceable records of inputs, versions, sources, and approvals let the company reconstruct how an output was produced. Deleting content or keeping no records prevents that explanation.
Question 10
A company uses an AI tool that sometimes produces offensive text. Which governance control reduces the chance of that text reaching customers?
- AOutput moderation or safety filtering before content is displayed, combined with a human escalation path
- BRelying on the model's pretraining and built-in alignment to avoid offensive wording, without runtime checks
- CTurning off user feedback features such as thumbs-up ratings and comment boxes in the chat interface to reduce clutter
- DPublishing the generated text on a public status page so customers can flag offensive wording themselves, with no review
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Correct answer: AOutput filtering and escalation stop harmful content before it reaches customers. Removing feedback or relying only on training leaves gaps, and publishing offensive text is harmful.
Foundation model selection and adaptation (5 questions)
Question 11
A marketing team needs a model to write product descriptions in a brand voice. It has a few hundred approved examples. Which approach should the team evaluate first?
- AUsing a classic rules engine with fixed templates and manually maintained substitution tables
- BPrompt engineering with examples, then consider fine-tuning if quality gaps remain
- CBuilding a new foundation model from scratch on web-scale corpora across a large GPU cluster
- DHiring a team of freelance copywriters to replace the AI model entirely
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Correct answer: BFew-shot prompting is the cheapest first step and fine-tuning is considered only if measured quality falls short. Training a foundation model from scratch is far more costly than the need justifies.
Question 12
A company wants answers grounded in its current policy documents, which change every month. Which approach best meets this need without retraining a model each month?
- AFine-tuning the model on updated policy documents after every change
- BRetrieval-augmented generation that searches the current documents at query time
- CStoring every policy in the model's system prompt permanently, with no mechanism to refresh it
- DAsking every employee to memorize the policies from the handbook
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Correct answer: BRetrieval-augmented generation pulls the latest content into the prompt when needed, so updates do not require retraining. Monthly fine-tuning is slow and costly, and a static prompt goes out of date.
Question 13
A startup needs a model for a classification task that runs thousands of times per minute and must respond within milliseconds. Which trade-off should the team weigh first?
- AA human team that answers each request manually
- BThe largest model available, because larger always means faster
- CA smaller or specialized model that meets accuracy targets at lower latency and cost
- DBatching all requests into a weekly job
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Correct answer: BLatency and cost requirements usually favor smaller models when they meet accuracy goals. Larger models add latency and cost, and weekly batches fail the real-time requirement.
Question 14
A legal team wants a model to draft clauses, but the output must not include information from other clients' contracts. Which design addresses this requirement?
- AFine-tune one shared model on the combined contract libraries of every client so that drafting quality improves across matters
- BPut every client's contracts into one shared prompt context window so the model can reference them when drafting each new clause
- CUse access-controlled retrieval so only the current matter's documents are searchable for each request
- DAllow the model to browse the public internet and open legal forums for clause ideas, then adapt the wording to the current matter
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Correct answer: CScoped retrieval keeps each request limited to authorized documents, which prevents cross-client leakage. Shared fine-tuning or shared prompts mix confidential data across matters.
Question 15
A company will use a generative model to sort customer complaints into fixed categories. Which evaluation matters most before rollout?
- AThe model's marketing name and the vendor's brochure claims about accuracy
- BThe number of categories shown on the monitoring dashboard
- CHow fast the model typed its first sentence in a sales demo
- DAccuracy and error rates measured on a labeled sample of real complaints
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Correct answer: DAccuracy on a labeled sample of real complaints shows whether the categories are assigned correctly. Dashboard counts, demo speed, and marketing names do not measure classification quality.
Implementation, adoption and change management (5 questions)
Question 16
A large insurer rolls out an AI assistant to claims adjusters, and adoption is low. Which action is most likely to improve adoption?
- AMandate usage with no training or feedback channel
- BDisable the old tools so adjusters have no choice
- CInvolve adjusters in workflow design, provide targeted training, and collect feedback to refine prompts and content
- DPublish the usage numbers in a company newsletter without changes
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Correct answer: AUsers adopt tools that fit their workflow and that they were trained to use, and feedback loops make improvements visible. Forced use without training and removing alternatives often increases resistance.
Question 17
A company wants to adopt AI across several business units. Which operating model best balances speed with consistent governance?
- AEach unit buys its own tools with no shared standards
- BIndividual employees use personal accounts with company data
- CA central platform and governance team that sets standards, with business units owning use cases
- DOnly the IT department may experiment with AI
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Correct answer: AA central team that sets guardrails and shared platforms, while units own use cases, scales adoption safely. Unmanaged tools and personal accounts expose data and create inconsistent controls.
Question 18
During a generative AI pilot, employees start pasting confidential customer records into a public chatbot. Which action should the organization take first?
- AIgnore it because the pilot is only a test
- BGive every employee administrator rights
- CPublish an approved tool and acceptable-use policy, and block or redirect unapproved public tools for company data
- DAsk employees to stop pasting only after the pilot ends
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Correct answer: AProviding an approved alternative and clear policy addresses the data exposure directly, while controls limit recurrence. Waiting or ignoring the behavior leaves confidential data at risk.
Question 19
A logistics company wants its dispatchers to trust an AI route suggestion tool. Which approach builds the most appropriate trust over time?
- AShowing the reasons behind each suggestion and letting dispatchers accept or override it, with outcomes tracked
- BRequiring dispatchers to follow each routing suggestion without exception, with overrides logged as compliance violations
- CReplacing dispatchers with the automated routing engine after the first week, before outcome data has been gathered from pilot route runs
- DHiding how suggestions are generated from dispatchers and drivers to reduce confusion during dispatch shifts at peak hours
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Correct answer: AExplanations and the ability to override build calibrated trust, and tracking outcomes shows whether the tool helps. Hidden logic, forced compliance, and removing people early all undermine trust.
Question 20
An organization runs a generative AI program that spans legal, finance, and operations. Which role is most important for coordinating priorities and risk decisions across these groups?
- AAn accountable executive sponsor supported by a cross-functional governance group
- BA vendor sales representative offering discounted licenses for the platform
- CAn intern who takes meeting notes and tracks follow-ups for the steering group
- DEach team choosing its own risk tolerance with no coordination across legal, finance, and operations
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Correct answer: AA sponsor with a cross-functional governance group resolves trade-offs and owns risk decisions. Unstructured team choices and vendor sales roles do not provide that accountability.
Cost, ROI and measuring success (5 questions)
Question 21
A leadership team wants to judge whether a generative AI pilot was worth its cost. Which set of measures is most useful?
- ABusiness outcome metrics such as handling time, conversion, or error rates compared against total cost including usage and staff time
- BThe total number of tokens processed, regardless of outcome
- CThe count of models tested during the pilot
- DThe number of AI-related slides in board presentations
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Correct answer: DROI is measured by business outcomes compared against full cost, including model usage and people time. Token counts, slide counts, and model counts measure activity rather than value.
Question 22
Which two factors have the largest influence on the ongoing operating cost of a customer support assistant? (Choose two.)
- AThe number of meeting rooms booked
- BThe color of the user interface
- CThe number of requests per month
- DThe number of input and output tokens per request
- EThe name of the project in the wiki
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Correct answer: C, DUsage-based pricing scales with request volume and with the tokens in each request, so these drive most recurring cost. UI color, wiki names, and room bookings have no effect on model spend.
Question 23
A company compares two model options. One has a lower price per token but needs twice as many tokens to reach the same answer quality. Which comparison is correct?
- ACost should be compared per successful task outcome, including token volume and rework
- BThe option with more tokens is always better
- CThe lower per-token price is always cheaper
- DToken counts do not affect cost
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Correct answer: CTotal cost per acceptable outcome combines price per token with how many tokens each option needs. A lower unit price can still cost more overall when more tokens are required.
Question 24
A company wants to know whether a generative AI application meets its response-time target. Which measurement is most appropriate?
- AThe number of words and tokens in the user prompt sent to it
- BThe number of CPU cores on the developer laptop used for testing
- CPercentile latency measured under realistic load from the user's location
- DAverage latency measured once at night on a single idle test server with a warm cache
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Correct answer: CPercentile latency under realistic load shows what users actually experience at peak. A single nighttime average hides tail delays, and laptop hardware and prompt length do not measure the target.
Question 25
A company runs a generative AI pilot and wants to forecast the cost of rolling it out to all 40,000 employees. Which input is needed most?
- AThe number of office plants and the color scheme used in the employee cafeteria signage boards
- BUsage assumptions per user, such as requests per day and average tokens per request
- CThe average lifespan of the keyboards and mice purchased during the last hardware refresh cycle
- DThe company's logo file size and the font licensing terms for the corporate brand guidelines document
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Correct answer: BScaling cost depends on how many requests each user makes and how large each request is. Office or hardware facts do not drive model consumption.
AI fundamentals and terminology (5 questions)
Question 26
A retail executive asks for the difference between machine learning and generative AI. Which statement is most accurate?
- AGenerative AI models replace the enterprise data warehouse and transactional databases once a large language model is deployed for reporting
- BGenerative AI models create new content such as text or images, while traditional machine learning models mainly predict labels or values from data
- CMachine learning is restricted to image data, so tabular records and sensor readings must first be converted into pixel arrays before a model can produce a prediction
- DGenerative AI models do not learn from data; they answer by retrieving stored responses from a fixed lookup table built during deployment
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Correct answer: BGenerative AI is a subset of machine learning focused on producing new content, while many classic ML models classify or forecast. The other statements either reverse the relationship or make absolute claims that are false.
Question 27
Which term describes the phenomenon where a generative model produces a fluent answer that is factually wrong?
- AHallucination
- BData labeling
- COverfitting in a classifier
- DFeature scaling
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Correct answer: AHallucination refers to plausible but incorrect or unsupported generated output. Overfitting, labeling, and feature scaling are other ML concepts that do not describe fabricated fluent text.
Question 28
Which description best matches a foundation model?
- AA database index that stores precomputed search results for fast lookup on tabular keys
- BA visualization tool for building interactive dashboards and charts from reporting data
- CA rules-based program that applies hand-written if-then statements and fixed thresholds
- DA model trained on broad data that can be adapted to many downstream tasks
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Correct answer: DFoundation models are large pretrained models adaptable to many tasks through prompting, retrieval, or fine-tuning. Rules engines, indexes, and dashboards do not match that definition.
Question 29
Which term describes the practice of adjusting a pretrained model with additional labeled examples so it performs better on a specific task?
- ASharding
- BCaching
- CFine-tuning
- DLoad balancing
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Correct answer: CFine-tuning updates a pretrained model using task-specific examples. Sharding, caching, and load balancing are infrastructure techniques and do not change model behavior.
Question 30
Which two statements about tokens in a generative AI model are correct? (Choose two.)
- AMany services bill by the number of input and output tokens
- BTokens are digital signatures that prove a user's identity
- CTokens are the names of model developers
- DTokens are the units of text a model reads and generates
- ETokens are physical chips inside a server
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Correct answer: A, DModels process text as sub-word tokens, and pricing is commonly based on input and output token counts. Hardware chips, identity signatures, and developer names are unrelated.
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