Task Statement 5.2: Recognize Governance and Compliance Regulations for AI Systems. AIF-C01 Practice Questions (Page 1)

Questions 1–5

1. 1application · medium

   A retail company uses an AI system to personalize marketing offers. The system relies on customer data from multiple sources, including purchase history and web browsing activity. The company must comply with data protection regulations and ensure data quality for accurate model predictions. Which data governance practice is most important to implement?

   • ADelete all customer data after each marketing campaign to minimize storage costs and privacy risks.
   • BUse only the most recent customer data and discard historical data to ensure the model reflects current preferences.
   • CEstablish a data lineage system that tracks the origin, transformation, and usage of customer data across the AI pipeline.
   • DGrant all data scientists unrestricted access to customer data to encourage innovation and model improvement.
   Reveal Solution Discussion Select an answer first
2. 2application · medium

   A European bank uses an AI system to assess loan applications. The system processes personal data of EU residents and makes automated decisions that significantly affect applicants. The bank must comply with both the GDPR and the EU AI Act. Which combination of measures should the bank implement to meet the core obligations under these regulations?

   • AObtain explicit consent from all applicants for every data processing activity and store consent records for five years.
   • BProvide applicants with meaningful information about the logic involved in the automated decision and implement a human review process for contested decisions.
   • CDeploy the AI system in a public cloud region outside the EU to avoid GDPR territorial scope and EU AI Act applicability.
   • DAnonymize all personal data before processing and rely on the anonymized data exemption to avoid GDPR and EU AI Act obligations.
   Reveal Solution Discussion Select an answer first
4. 3application · medium

   A financial services firm is required by regulators to demonstrate that its AI credit-scoring model is fair and auditable. The firm has multiple versions of the model in production. Which practice should the firm adopt to meet these regulatory expectations?

   • AMaintain a central model registry that records each version, its training data, performance metrics, and approval history.
   • BUse a single production model and avoid any updates to ensure consistency and ease of auditing.
   • CKeep only the latest model version and delete older versions to reduce storage and complexity.
   • DAllow data scientists to deploy model updates directly to production without documentation to speed up innovation.
   Reveal Solution Discussion Select an answer first
5. 4foundation · easy

   An AI system is found to produce biased outcomes against a certain group. Which ethical principle is being violated?

   • ARobustness
   • BFairness
   • CAccountability
   • DTransparency
   Reveal Solution Discussion Select an answer first
6. 5foundation · easy

   A company processes personal data of EU citizens using an AI system. Which regulation imposes obligations on the processing of this data, including requirements for lawful basis and data subject rights?

   • AEU AI Act
   • BGeneral Data Protection Regulation (GDPR)
   • CSarbanes-Oxley Act (SOX)
   • DPayment Card Industry Data Security Standard (PCI DSS)
   Reveal Solution Discussion Select an answer first