IAPP Updated AIGP Exam Questions and Answers by ray

The correct answer is Explainable AI because it specifically refers to the ability of a system to describe the logic behind its decisions or outputs in a way that is understandable to humans. This is a key part of regulatory and ethical frameworks and is directly related to addressing the black-box problem in AI.

From the AIGP ILT Participant Guide (Module on Transparency and Explainability):

“Explainability refers to the understanding of how a black-box model works. The black-box problem exists because some models are too complex for human interpretation. Explainability methods aim to provide meaningful insight into the logic and decision-making of AI systems.”

Also, according to the AI Governance in Practice Report 2024:

“Explainability refers to the representation of the underlying mechanisms of the AI system’s operation... a key tenet of AI governance due to the desire to understand how AI systems are built, managed and maintained.”

Thus, while Trustworthy and Responsible AI are broader concepts, explainability specifically targets the regulatory concern about understanding outputs.

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The GDPR's transparency principle requires that when personal data is processed for automated decision-making, including profiling, data subjects must be informed about the existence of such automated decision-making. Additionally, they must be provided with meaningful information about the logic involved, as well as the significance and the envisaged consequences of such processing for them. This requirement ensures that data subjects are fully aware of how their personal data is being used and the potential impacts, thereby promoting transparency and trust in the processing activities.

The potential negative consequences of using an AI tool in hiring include reputational harm (A), civil rights violations (B), and discriminatory treatment (C). These issues stem from biases in the AI system or its misuse, which can lead to unfair hiring practices and legal liabilities. Intellectual property infringement (D) is not a typical consequence of using AI in hiring, as it relates to the unauthorized use of protected intellectual property, which is not directly relevant to the hiring process or the potential biases within AI tools​​​​.

Under the EU regulations, particularly the GDPR, banks using AI for decision-making must inform users about the use of AI and provide mechanisms for users to contest decisions. This is part of ensuring transparency and accountability in automated processing. Explicit consent under the privacy directive (A) and disclosing under the Digital Services Act (B) are not specifically required in this context. An adequacy decision is related to data transfers outside the EU (C).