Use Legal/licensing Requirements for Data Sources to Avoid Legal Risk GENERATIVE-AI-ENGINEER-ASSOCIATE Practice Questions (Page 1)

Questions 1–5

1. 1application · medium

   A startup is building a model to generate product descriptions. They found a dataset of product images and descriptions on a public website. The website's terms of use state that the content is for personal use only and cannot be used for commercial purposes. The startup plans to use the model to generate descriptions for its own e-commerce site. What should they do?

   • AUse the dataset and argue that the generated descriptions are transformative and not a direct use of the data.
   • BContact the website owner to obtain permission for commercial use.
   • CUse the dataset but only for training, not for generating descriptions for the e-commerce site.
   • DUse the dataset because it is publicly available and the startup is a small business.
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2. 2expert · hard

   A data engineer at a financial services company is building a dataset for a fraud detection model. They want to include transaction data from a third-party data provider. The provider's contract states that the data can be used only for internal analytics and cannot be shared with third parties. The company plans to use the model as a service offered to other businesses. What is the most appropriate action?

   • AUse the data for internal model training, but do not share the raw data with customers.
   • BUse the data and rely on the fact that the model is a derivative work, not the raw data.
   • CNegotiate a new contract with the provider that explicitly permits use of the data in a model offered as a service.
   • DAnonymize the data before training to avoid any contractual restrictions.
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4. 3foundation · easy

   A team wants to train a generative model on a dataset that is not explicitly licensed for commercial use. Which compliance measure is most appropriate to reduce legal risk?

   • AUse only a small subset of the data to minimize the risk of infringement.
   • BProceed with training because the dataset is publicly available.
   • CObtain explicit written permission from the data owner for the intended use.
   • DAnonymize the data to remove any personal information before training.
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5. 4application · medium

   A nonprofit organization is building a model to generate educational content. They found a dataset of textbooks that is licensed under Creative Commons Attribution (CC BY). The organization plans to use the model to create content that will be sold to schools. What is the main consideration?

   • AThey cannot use the dataset because CC BY does not permit commercial use.
   • BThey must attribute the original authors in any derivative work.
   • CThey can use the dataset for commercial purposes as long as they provide attribution and indicate any changes made.
   • DThey must release their model under the same CC BY license.
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6. 5application · medium

   A data analyst at a news organization wants to use a dataset of news articles from a competitor's website to train a summarization model. The competitor's website has a robots.txt file that disallows crawling, and the articles are protected by copyright. What is the primary legal risk?

   • ABreach of the competitor's terms of service, if any, but only if the analyst agreed to them.
   • BNo legal risk because the data is publicly available on the web.
   • CCopyright infringement, because the articles are protected by copyright and the use is not likely to be fair use.
   • DViolating the robots.txt file, which is a legally binding contract.
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