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AIF-C01 · Question #199

A financial company is using AI systems to obtain customer credit scores as part of the loan application process. The company wants to expand to a new market in a different geographic area. The…

The correct answer is C. Local education privacy laws. When deploying AI systems that affect individuals, such as credit scoring, companies must comply with local algorithm accountability laws. These laws regulate the fairness, transparency, and impact of automated decision-making, ensuring ethical use of AI in new geographic…

Submitted by kavita_s· Mar 30, 2026

Question

A financial company is using AI systems to obtain customer credit scores as part of the loan application process. The company wants to expand to a new market in a different geographic area. The company must ensure that it can operate in that geographic area. Which compliance laws should the company review?

Options

  • ALocal health data protection laws
  • BLocal payment card data protection laws
  • CLocal education privacy laws
  • DLocal algorithm accountability laws

How the community answered

(40 responses)
  • A
    3% (1)
  • B
    15% (6)
  • C
    75% (30)
  • D
    8% (3)

Explanation

When deploying AI systems that affect individuals, such as credit scoring, companies must comply with local algorithm accountability laws. These laws regulate the fairness, transparency, and impact of automated decision-making, ensuring ethical use of AI in new geographic regions.

Topics

#AI compliance#Algorithmic accountability#Cross-border compliance

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