Explanation:
Developing AI models internally allows institutions like central banks to maintain strict data privacy, tailor models specifically to their unique institutional needs, and govern the entire lifecycle of the model. Options B, C, and D are typically advantages associated with relying on external AI providers and cloud platforms rather than developing in-house.
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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.