What financial risks are associated with AI?

• A. Compute costs and cloud expenses required for AI workloads.
• B. Decreased need for data storage.
• C. Guaranteed return on investment independent of usage.
• D. Lower staff costs due to automation.

Answer: (A)

The key financial risk being tested is the ongoing costs tied to AI workloads, especially compute and cloud expenses. AI initiatives often require substantial cloud compute, GPUs, storage, and data transfer. These costs can escalate quickly during model training, fine-tuning, and regular inference as usage scales, and they can be hard to forecast, leading to budget overruns without proper governance, monitoring, and cost controls.

This makes the option the best choice because it directly points to the financial exposure created by the need for sustained, scalable compute resources and cloud infrastructure. Other statements describe outcomes that are either unlikely (decreased data storage needs) or not inherent risks (a guaranteed ROI) or describe potential benefits (lower staff costs) rather than the financial risk of ongoing AI operations.