Global AI Regulations and Policies AIE Practice Questions (Page 5)

Questions 21–25

1. 21expert · hard

   A multinational company is deciding where to deploy an AI system that uses facial recognition. The system is controversial and may face regulatory scrutiny. The company wants to minimize regulatory risk. Which region's approach would likely impose the most stringent requirements?

   • AThe EU, because the AI Act classifies facial recognition as high-risk and imposes strict requirements.
   • BAll regions have equally stringent requirements.
   • CThe US, because it has a comprehensive federal AI law.
   • DChina, because it has no specific regulations for facial recognition.
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2. 22expert · hard

   A multinational bank uses an AI system for anti-money laundering (AML) monitoring. The system is deployed in the EU, the US, and the UK. The EU AI Act may classify AML as high-risk, the US has FinCEN regulations, and the UK has its own AI framework. The bank wants to ensure compliance without duplicating efforts. What is the best approach?

   • ACreate a separate AI compliance team for each region to handle local regulations independently.
   • BUse a single global AI system and ignore regional differences, assuming the EU AI Act is the only relevant law.
   • COutsource AI compliance to a third-party auditor to avoid internal responsibility.
   • DMap the EU AI Act's high-risk requirements to existing AML compliance processes and identify gaps.
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4. 23application · easy

   An organization is designing an AI governance framework. The framework must align with the common principles found in global AI policies. Which set of principles is most commonly cited across major frameworks?

   • ATransparency, accountability, fairness, and human oversight
   • BProfit maximization, market share, and customer satisfaction
   • CInnovation, speed, and cost reduction
   • DData minimization, encryption, and network security
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5. 24foundation · easy

   Which of the following is a common role of AI governance within an organization in the context of global AI regulations?

   • AMaximizing the speed of AI model deployment without regard to external rules.
   • BEnsuring that AI systems comply with applicable laws and internal ethical standards.
   • CEliminating the need for human involvement in AI decision-making.
   • DGuaranteeing that AI systems are always profitable.
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6. 25application · medium

   A financial services firm uses an AI model to approve loans. The firm operates globally and must comply with the EU AI Act. The model's decisions are currently opaque. What is the most direct compliance action the firm should take?

   • AMove the AI system to a country outside the EU to avoid the regulation.
   • BImplement model documentation and logging to provide transparency into decision-making.
   • CStop using AI for loan approvals entirely.
   • DDelete all training data to avoid bias complaints.
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