Explanation:
Developing AI models internally allows an organization (such as a central bank) to have greater control over its proprietary data, data security, and the ongoing tuning and updating of the model. It mitigates third-party reliance and vendor lock-in risks. Options B, C, and D are typically advantages of outsourcing or relying on external AI providers.
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Q.16 Central banks face a trade-off when deciding whether to develop AI models internally or rely on external providers. What is a key advantage of developing AI models internally?
A
Reduced reliance on external vendors and greater control over data security and model updates.
B
Faster deployment times due to the availability of pre-built components and APIs.
C
Lower initial investment costs by leveraging existing cloud-based AI platforms.
D
Access to a broader pool of readily available talent specializing in diverse AI applications.
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