Global AI Regulations and Policies AIE Practice Questions (Page 4)

Questions 16–20

1. 16application · medium

   An e-commerce company uses a recommendation algorithm that personalizes product suggestions. A regulator asks the company to explain why a specific user received certain recommendations. The company's current system is a black-box model. What should the company do to address the regulator's request?

   • AReplace the black-box model with a simple linear regression model to ensure full transparency.
   • BProvide the user with the raw training data used to build the model.
   • CImplement model explainability tools that generate post-hoc explanations for individual predictions.
   • DRefuse to provide an explanation, citing trade secret protection.
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2. 17expert · hard

   A company has an AI system that is considered high-risk under the EU AI Act. The system is already in use. The company discovers that the system does not have adequate human oversight mechanisms. What is the most appropriate immediate action?

   • AShut down the system immediately and never use AI again.
   • BContinue using the system and hope that no one notices.
   • CMove the system to a country outside the EU to avoid the regulation.
   • DImplement human oversight procedures and document them, then plan for a conformity assessment.
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4. 18expert · hard

   A global tech company is developing an AI system that will be deployed in the EU, US, and China. The system uses facial recognition for security purposes. The EU requires strict compliance, the US has sectoral rules, and China has specific regulations. The company wants to minimize compliance costs while maintaining a single core product. What is the most effective strategy?

   • ABuild separate systems for each region to avoid any shared compliance burden.
   • BUse a single global system that meets only the US requirements.
   • CDesign the system to meet the most stringent requirements (EU) and then adapt specific features for the US and China.
   • DLaunch in the US first and then adapt for the EU and China later.
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5. 19application · easy

   A policy analyst is asked to summarize the global AI regulatory landscape for a board meeting. Which statement accurately describes the current situation?

   • AThere are no international frameworks for AI regulation.
   • BThe UNESCO Recommendation has the same legal force as the EU AI Act.
   • CThe EU AI Act is a binding regulation, while the OECD AI Principles are non-binding guidelines.
   • DThe OECD AI Principles are legally binding on all member countries.
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6. 20foundation · easy

   Which international framework is known for introducing a risk-based classification for AI systems, with obligations scaled according to the level of risk the system poses?

   • AOECD AI Principles
   • BEU AI Act
   • CUNESCO Recommendation on the Ethics of AI
   • DGDPR
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