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Unit 6 Project: Ethical AI in Practice

Unit 6 Capstone – Ethical & Regulatory Considerations Skip to main content
Unit 6 · Capstone Project

Ethical AI in Practice

Apply everything from Unit 6 to a real-world governance challenge. You'll analyze scenarios, assign roles, design mitigations, and draft a governance plan — demonstrating mastery across all five lessons.

90–120 min 4 Case Studies Applied Governance 100 Points Total
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Capstone Overview

Your mission: be the AI governance expert

You've completed all five lessons of Unit 6. Now it's time to put those skills to work. This capstone presents four real-world-style governance scenarios. For each one, you'll need to draw on everything you've learned — ethical risk identification, responsible AI principles, global regulations, privacy compliance, and stakeholder roles.

Work through each case study tab below. Complete the response tasks in each section, then submit for scoring and feedback. There are no trick questions — this is about demonstrating you can think like an AI governance professional.

Skills tested across all five lessons

Lesson 6.1 (Ethical Risks) · Lesson 6.2 (Responsible AI Principles) · Lesson 6.3 (Global AI Regulations) · Lesson 6.4 (Privacy & Data Compliance) · Lesson 6.5 (Governance, Mitigation & Stakeholder Roles)

  • 1 Case Study A: Healthcare AI Bias Crisis
  • 2 Case Study B: EU Expansion & Privacy Compliance
  • 3 Case Study C: Hiring AI Under Regulatory Scrutiny
  • 4 Case Study D: Governance Structure Design
Capstone Assessments

Four case studies · 25 points each

Case Study A: The HealthPredict Diagnostic AI Crisis

Unit 6.1 (Ethical Risks) · Unit 6.2 (Responsible AI Principles) · Unit 6.5 (Governance Roles)

Scenario: MedCore Health Systems deployed "HealthPredict," an AI diagnostic assistant for primary care physicians across 120 clinics. The system was trained on 10 years of electronic health records and achieved 91% overall diagnostic accuracy in pre-deployment testing. Eighteen months post-launch, internal monitoring reveals a troubling pattern: HealthPredict's accuracy for patients over 70 is only 74%, and for non-English-speaking patients, it's 69%. Both groups were significantly underrepresented in the training data. Three older patients have filed complaints alleging they received delayed diagnoses for serious conditions. The system is currently still running across all clinics. MedCore's CEO has asked for an immediate governance response.

Hint: Think bias, transparency, accountability — and connect to specific principles like fairness, safety, inclusiveness.

0/1200 characters

Roles to consider: Model Owner, Data Scientist / ML Engineer, Compliance Officer, DPO, Ethics Committee, CISO, AI Product Manager, Clinical Leadership.

0/1200 characters

Consider: immediate risk containment, bias mitigation strategies, data remediation, retraining, monitoring changes, and governance structure improvements.

0/1400 characters

Case Study B: RetailMax Expands to the EU — Privacy Reckoning

Unit 6.3 (Global AI Regulations) · Unit 6.4 (Privacy & Data Compliance) · Unit 6.5 (Governance)

Scenario: RetailMax is a US-based e-commerce company expanding into Germany, France, and the Netherlands. Their AI systems include: (1) a personalized recommendation engine trained on purchase history, browsing behavior, and inferred demographics; (2) a customer service chatbot that logs all conversations and uses them for ongoing model training; (3) a dynamic pricing AI that adjusts prices in real time based on individual customer profiles including estimated income range. RetailMax currently has no DPO, no privacy notices translated to the local languages, no data processing agreements with EU customers, and no DPIA documentation. Their Head of Product says, "We don't collect medical data — how much can GDPR really affect us?"

Think: lawful basis, transparency, data minimization, automated decision-making rights, DPO requirement, DPIA, consent, data processing agreements.

0/1400 characters

This is a communication exercise — be clear, factual, and persuasive without being condescending.

0/1200 characters

Prioritize by legal risk and launch dependency. Include: DPO appointment, DPIA, lawful basis documentation, privacy notices, data processing agreements, user rights infrastructure.

0/1400 characters

Case Study C: HireLogic — Regulatory Scrutiny and a Discrimination Complaint

Unit 6.1 (Ethical Risks) · Unit 6.3 (Global Regulations) · Unit 6.4 (Privacy) · Unit 6.5 (Governance)

Scenario: HireLogic is a mid-sized HR tech company that licenses an AI-powered resume screening tool to 200+ corporate clients. A civil rights organization files a complaint with the EEOC alleging that HireLogic's AI systematically screens out candidates over 45 by penalizing work history patterns common in older workers (longer tenures, earlier graduation years). Separately, a New York City client informs HireLogic that under NYC Local Law 144, they must produce a bias audit report — which HireLogic has never conducted. A class-action attorney has also sent a preservation notice. HireLogic has no ethics committee, no formal bias testing process, and no model cards. The tool is currently deployed at all 200+ client companies.

Consider: EEOC / Age Discrimination in Employment Act (ADEA), NYC Local Law 144, GDPR (if any EU clients), Title VII, Illinois AIVIA, and any relevant AI Act provisions.

0/1200 characters

This is a live crisis. Balance legal compliance, client obligations, potential harm to job seekers, and business continuity. What can't wait vs. what can be sequenced?

0/1200 characters

Address: bias testing process, model cards, ethics committee structure, client contracts, regulatory monitoring, ongoing audit schedule. Be specific about what each element would look like.

0/1400 characters

Case Study D: Building AI Governance from Scratch

Unit 6.2 (Responsible AI Principles) · Unit 6.5 (Governance Lifecycle & Roles) — Synthesis Case

Scenario: You have been hired as the first AI Governance Lead at FinBridge, a financial services company with 800 employees that is planning to deploy three new AI systems in the next 12 months: (1) an AI credit decisioning system that will fully automate loan approvals under $25,000; (2) a customer-facing chatbot for account support; (3) an internal AI tool for detecting fraudulent transactions. Currently, FinBridge has no formal AI governance policy, no ethics committee, no model documentation standards, and no designated privacy or AI compliance roles. The CEO has given you a mandate to build the governance framework before any of the three systems goes live. You have a budget for two additional hires. Where do you start?

Consider: EU AI Act high-risk categories, ECOA/fair lending law, GDPR automated decision rights, CFPB AI guidance, and the consequences of errors for affected individuals.

0/1200 characters

Balance comprehensiveness with practicality — this is an 800-person company, not a tech giant. What's the minimum viable governance structure that still provides real protection?

0/1400 characters

Reference the lifecycle stages: problem definition → data collection → model development → testing & validation → deployment → monitoring & update. Include who is responsible at each stage.

0/1600 characters
Assessment Rubric

How each case study is scored (25 points each)

CriterionExemplary (Full marks)Satisfactory (Partial)Points
Risk / Issue IdentificationAccurately identifies all major risks, violations, or gaps with specific detail. Names correct laws, principles, or articles.Identifies major issues but misses nuances or lacks specificity on applicable laws/principles.8 pts
Stakeholder / Role AssignmentCorrectly assigns each action to the right role with specific, actionable responsibilities. No role confusion.Mostly correct assignments; may have one role confusion or some actions assigned to wrong stakeholders.8 pts
Mitigation / Plan QualityComprehensive, practical plan with clear sequencing, specific actions, and prevention mechanisms. Shows systems thinking.Plan covers main points but may be generic, miss some elements, or lack sequencing and prevention focus.7 pts
Vocabulary & Concept ApplicationConsistently uses accurate Unit 6 terminology in context (bias audit, DPIA, model drift, disparate impact, XAI, etc.).Uses some terms correctly; may be inconsistent or occasionally use terms imprecisely.Embedded above
Self-assessment guidance

After submitting each case, read the model answer guidance carefully. Governance rarely has a single correct answer — the quality of your reasoning and specificity of your recommendations matters as much as covering the right topics. Would a DPO or compliance officer find your plan actionable?