An Ethical Impact Assessment primarily evaluates which aspects of AI systems?

• A. The overall design, development, and deployment
• B. Only financial impact
• C. Only data accuracy
• D. Only external compliance

Answer: (A)

An Ethical Impact Assessment looks at how an AI system affects people and society across the entire lifecycle, from how it’s designed and developed to how it’s deployed and governed. It goes beyond technical performance to consider potential harms and benefits tied to design choices, data usage, and real‑world use. This means examining issues like fairness and bias, privacy and consent, safety, accountability, transparency, and the rights of users, as well as broader societal or environmental effects. Because it evaluates these ethical dimensions across design, data handling, and deployment—not just a single facet—it provides the most comprehensive view of how the system might impact stakeholders. Limiting the lens to financial impact misses ethical considerations; focusing only on data accuracy overlooks bias and privacy concerns; and focusing only on external compliance misses whether the system aligns with values and governance expectations even beyond what rules require.