Responsible Practices and Governance Standards AIE Practice Questions (Page 12)

Questions 56–57

1. 56expert · hard

   A multinational corporation is building a global customer service AI chatbot. The chatbot will process personal data from customers in multiple countries, including the EU, Brazil, and Japan. The company wants to comply with various data protection regulations (GDPR, LGPD, APPI) while maintaining a consistent user experience. What is the most appropriate data governance strategy?

   • AImplement a privacy-by-design approach with data minimization, purpose limitation, and region-specific data handling policies.
   • BAnonymize all data at the point of collection to avoid regulatory obligations.
   • CStore all data in a single data center located in the EU to ensure GDPR compliance.
   • DApply the strictest regulation (GDPR) globally to all users to simplify compliance.
   Reveal Solution Discussion Select an answer first
2. 57application · medium

   An insurance company is developing an AI model to set premiums for auto insurance. The model uses historical claims data. The data science team finds that the model assigns higher premiums to drivers from certain postal codes. The company wants to avoid unfair discrimination. What should the team do first?

   • AIncrease premiums for all drivers to equalize the average premium across postal codes.
   • BRemove the postal code variable immediately to eliminate any potential bias.
   • CInvestigate whether the postal code variable is a proxy for protected characteristics such as race or income.
   • DIgnore the disparity because historical data reflects real risk differences.
   Reveal Solution Discussion Select an answer first