IAPP Updated AIGP Exam Questions and Answers by avie

When an AI system causessignificant false positives, especially in sensitive contexts likefraud detection, the priority is tohalt harmful activityand perform a full assessment. Continued use without understanding the fault may cause furthercustomer harmand legal exposure.

From theAI Governance in Practice Report 2025:

“Incident management plans should enable identification, escalation, and system rollback to prevent continued harm from malfunctioning AI systems.” (p. 12, 35)

The correct answer is C. This option concerns consent, which is generally a privacy, transparency, or institutional governance issue rather than a copyright issue. Copyright risk in AI governance usually relates to whether protected third party works were used in model training, whether generated outputs may reproduce copyrighted expression, and whether content is created without proper attribution or clear ownership boundaries. That makes options A, B, and D directly relevant to copyright and intellectual property concerns. In contrast, whether students must expressly consent deals with notice, fairness, and lawful or ethical use in an educational environment. For AIGP exam purposes, it is important to separate intellectual property risks from privacy and data protection obligations, even when both appear in the same classroom or organizational AI use case.

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).

The highest concern for individual teachers using generative AI to ensure students learn the course material is model accuracy. Ensuring that the AI-generated content is accurate and relevant to the curriculum is crucial for effective learning. If the AI model produces inaccurate or irrelevant content, it can mislead students and hinder their understanding of the subject matter.