AI Vendor and Supply Chain Management AAISM Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A media company is contracting with an AI vendor for content personalization. The vendor will have access to user behavior data. The company is concerned about data privacy regulations and wants to ensure that the vendor handles data in compliance with applicable laws. Which contractual clause is ESSENTIAL?

   • AA clause that specifies the vendor's obligations to comply with data protection laws and the company's data handling policies.
   • BA clause that allows the company to audit the vendor's security controls at any time.
   • CA clause that limits the vendor's use of data to the specific purpose of the contract.
   • DA clause that requires the vendor to use encryption for data at rest and in transit.
   Reveal Solution Discussion Select an answer first
2. 22application · medium

   A software company's AI product relies on a third-party API for natural language processing. The API vendor has a history of outages. The company wants to understand the impact of a potential API failure on its product. What should the company do?

   • AMap the supply chain to identify all dependencies on the API and assess the potential impact of an outage.
   • BAsk the API vendor to provide a service level agreement (SLA) with uptime guarantees.
   • CSwitch to a different API vendor immediately.
   • DIgnore the risk because the API vendor is a well-known company.
   Reveal Solution Discussion Select an answer first
4. 23foundation · easy

   Which element should be included in a supply chain map for an AI system?

   • AThe organization's internal IT policies
   • BThe vendor's marketing materials
   • CSub-vendors and open-source libraries used by the primary vendor
   • DThe vendor's employee training records
   Reveal Solution Discussion Select an answer first
5. 24application · medium

   A retail company is contracting with an AI vendor for customer behavior analytics. The vendor will have access to personal data. The company wants to ensure that the vendor's security practices align with its own policies and that any breach is reported promptly. Which contractual clause is MOST critical?

   • AA clause that limits the vendor's liability to the amount paid under the contract.
   • BA clause requiring the vendor to comply with the company's security standards and report security incidents within a defined timeframe.
   • CA clause that requires the vendor to use a specific cloud provider.
   • DA clause that allows the company to terminate the contract with 30 days' notice.
   Reveal Solution Discussion Select an answer first
6. 25foundation · easy

   What is the primary goal of incident response coordination with a vendor?

   • ATo transfer all liability for breaches to the vendor
   • BTo establish procedures for coordinated response to security breaches
   • CTo prevent all security breaches from occurring
   • DTo ensure the vendor handles all communication with regulators
   Reveal Solution Discussion Select an answer first