Global AI Regulations and Policies AIE Practice Questions (Page 6)

Questions 26–30

1. 26expert · hard

   A global social media company uses an AI system to recommend content. The company operates in the EU, the US, and China. The EU AI Act requires transparency for AI systems that interact with users, China requires algorithmic recommendation transparency, and the US has no federal law but has sectoral rules. The company wants to implement a single global policy. What is the best approach?

   • AAdopt a global policy that includes clear disclosure of AI-driven recommendations and provides users with controls to adjust their recommendations.
   • BApply the EU's transparency rules only to EU users and China's rules only to Chinese users.
   • CUse a single generic disclosure that the platform uses algorithms to recommend content, without explaining how.
   • DAvoid any disclosure because the US has no federal law requiring it.
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2. 27application · medium

   A credit union uses an AI model to determine credit limits. A member disputes the decision, claiming the model is biased against certain demographics. The credit union wants to ensure fairness and accountability. What should the credit union do first?

   • AConduct a bias audit using appropriate fairness metrics and review the model's decision-making process.
   • BIgnore the complaint because the model was approved by the board.
   • CProvide the member with the model's source code to prove fairness.
   • DImmediately retrain the model with a different algorithm to avoid further complaints.
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4. 28application · easy

   A policy advisor is preparing a briefing on global AI regulations. The advisor needs to include the major international frameworks. Which pair correctly identifies a binding regulation and a non-binding guideline?

   • AEU AI Act (binding) and OECD AI Principles (non-binding)
   • BOECD AI Principles (binding) and UNESCO Recommendation (non-binding)
   • CUNESCO Recommendation (binding) and EU AI Act (non-binding)
   • DBoth the EU AI Act and the OECD AI Principles are binding.
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5. 29expert · hard

   A multinational corporation is developing a global AI governance policy. The company operates in the EU, the US, and several countries that follow the OECD AI Principles. The company wants to ensure its policy is aligned with international best practices while also being legally compliant. Which combination of frameworks should the company reference?

   • AUse only the EU AI Act, since it is the most comprehensive and will become a global standard.
   • BUse the OECD AI Principles as a high-level framework and the EU AI Act as a binding compliance baseline for high-risk applications.
   • CUse China's AI regulations as the baseline, since they are the most prescriptive.
   • DUse only the OECD AI Principles, since they are internationally recognized and non-binding.
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6. 30foundation · easy

   Which region's AI regulatory approach is best described as 'sectoral', relying on existing agencies and industry-specific guidelines rather than a single overarching AI law?

   • AJapan
   • BEuropean Union
   • CUnited States
   • DChina
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