A financial company is training a generative AI model to predict outcomes of loan applications.

Comprehensive and Detailed Explanation From Exact AWS AI documents:

Removing a relevant feature from a small and imbalanced dataset can reduce the model’s ability to:

Learn meaningful distinctions between groups

Generalize well for underrepresented categories

AWS Responsible AI guidance explains that insufficient or removed features can lead to reduced predictive performance, especially for minority groups.

Why the other options are incorrect:

B is unrelated to model behavior.

C is unsupported by the scenario.

D is unlikely given data imbalance and feature removal.

AWS AI document references:

Bias and Data Representation in ML

Responsible Feature Selection

Dataset Imbalance and Model Performance