Scenario:
An organization wants to leverage its existing compliance structures to identify AI-specific risks as part of an ongoing data governance audit.
Which of the following compliance-related controls within an organization ismost easily adaptedto identify AI risks?
The correct answer isD -- Privacy impact assessments (PIAs). These aredirectly adaptablefor identifying risks in AI systems, particularly around data usage, bias, and individual impacts.
From the AIGP ILT Guide -- Risk Management Module:
''PIAs and DPIAs are existing tools used in privacy compliance that can be extended to evaluate the risks of AI, including fairness, explainability, and legality.''
AI Governance in Practice Report 2025 further explains:
''Organizations can adapt privacy impact assessments to evaluate the ethical, legal, and technical risks posed by AI systems. They provide a structured and recognized method.''
PIAs are preferable over general security practices (like pen testing) which do not address algorithmic bias or legal compliance directly.
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Why is it important that conformity requirements are satisfied before an AI system is released into production?
Conformity assessmentsare a core requirement under theEU AI Actfor high-risk systems and serve to confirm that the AI meetsregulatory, safety, and ethical standardsbefore it is put into production.
From theAI Governance in Practice Report 2025:
''Conformity assessments... ensure that systems comply with legal requirements, safety criteria, and intended purpose before being placed on the market.'' (p. 34)
''They are a critical step to demonstrate safety and trustworthiness in AI deployment.'' (p. 35)
During the development of semi-autonomous vehicles, various failures occurred as a result of the sensors misinterpreting environmental surroundings, such as sunlight.
These failures are an example of?
The failures in semi-autonomous vehicles due to sensors misinterpreting environmental surroundings, such as sunlight, are examples of brittleness. Brittleness in AI systems refers to their inability to handle variations in input data or unexpected conditions, leading to failures when the system encounters situations that were not adequately covered during training. These systems perform well under specific conditions but fail when those conditions change. Reference: AIGP Body of Knowledge on AI System Robustness and Failures.
A company is creating a mobile app to enable individuals to upload images and videos, and analyze this data using ML to provide lifestyle improvement recommendations. The signup form has the following data fields:
1.First name
2.Last name
3.Mobile number
4.Email ID
5.New password
6.Date of birth
7.Gender
In addition, the app obtains a device's IP address and location information while in use.
What GDPR privacy principles does this violate?
The GDPR privacy principles that this scenario violates are Purpose Limitation and Data Minimization. Purpose Limitation requires that personal data be collected for specified, explicit, and legitimate purposes and not further processed in a manner that is incompatible with those purposes. Data Minimization mandates that personal data collected should be adequate, relevant, and limited to what is necessary in relation to the purposes for which they are processed. In this case, collecting extensive personal information (e.g., IP address, location, gender) and potentially using it beyond the necessary scope for the app's functionality could violate these principles by collecting more data than needed and possibly using it for purposes not originally intended.
A US-based mortgage lender has purchased a chatbot. They plan to have the chatbot collect information from consumers who are interested in loans and offer the consumers 2-3 different options based on its current pricing and product offerings, which change frequently. This chatbot was initially developed and previously deployed by a Russian airline for booking flights.
The best option for the part of the process that generates the loan offers is?
Offeringloan products based on current offerings and rulesrequires a system that can followexplicit business logic, not generate open-ended content. Anexpert system, which is a rules-based AI that uses ''if-then'' logic, is ideal here.
From the AI governance context:
''Rule-based AI systems are often preferred when decisions must adhere to precise regulatory or financial criteria.'' (aligned with AI best practices in regulated sectors)
A . RAGis used to integrate external knowledge---not suitable for structured, rule-based logic.
B . Multimodal modelshandle varied input types---not needed here.
D . Quantum computingis not yet practical or relevant for this business use case.
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