AIGP Questions and Answers

The best reason for the police department to continue performing investigations even if the AI system scores an individual ' s likelihood of criminal activity at or above 90% is that AI systems affecting fundamental civil rights should not be fully automated. Human oversight is essential to ensure that decisions impacting civil liberties are made with due consideration of context and mitigating factors that an AI might not fully appreciate. This approach ensures fairness, accountability, and adherence to legal standards. Reference: AIGP Body of Knowledge on AI Ethics and Human Oversight.

The correct answer isC.Registration in the EU databaseis an obligation ofprovidersof high-risk AI systems—not distributors.

From the AIGP ILT Guide – Roles & Obligations Module:

“Distributors must verify CE marking, ensure instructions for use are provided, inform authorities of risks, and take corrective action when necessary. However, registration duties in the EU database lie with the provider.”

Also from the AI Governance in Practice Report 2025:

“The AI Act differentiates responsibilities for developers, providers, importers, and distributors. Only providers of high-risk systems are obligated to register their systems in the EU AI Database.”

Distributors focus onverification and communication, not formal registration.

If it is possible to provide a rationale for a specific output of an AI system, that system can best be described as explainable. Explainability in AI refers to the ability to interpret and understand the decision-making process of the AI system. This involves being able to articulate the factors and logic that led to a particular output or decision. Explainability is critical for building trust, enabling users to understand and validate the AI system ' s actions, and ensuring compliance with ethical and regulatory standards. It also facilitates debugging and improving the system by providing insights into its behavior.

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.

Before offering an AI solution in the EU market, a Canadian company must take several steps to comply with the EU AI Act. These steps include establishing a risk and quality management system (B), engaging a third-party auditor to perform a bias audit (C), and drawing up technical documentation and instructions for use (D). However, there is no requirement to register the AI solution in a public EU database (A). This registration step is not specified as part of the compliance requirements under the EU AI Act for such solutions​​​​.

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)

The correct answer isA. TheARIA programby NIST is explicitly designed tosupport stakeholders in understanding and managing the risks and impactsof AI systems.

From the AIGP ILT Guide – U.S. Risk Frameworks Module:

“NIST’s ARIA program develops and pilots assessment tools for AI risks and impacts, aimed at improving organizational capacity for responsible AI use.”

Also cited in the AI Governance in Practice Report 2025 (Frameworks Section):

“ARIA supports and aligns with the AI Risk Management Framework by helping organizations assess AI harms, safety concerns, and societal implications.”

ARIA isnota red-teaming or sandbox program—it’s anassessment and governance resource.

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The best human oversight mechanism for the police department to implement is for a police officer to consider the AI recommendation as part of the criminal investigation. This ensures that the AI system ' s output is used as a tool to aid human decision-making rather than replace it. The police officer should integrate the AI ' s insights with other evidence and contextual information to make informed decisions, maintaining a balance between technological aid and human judgment. Reference: AIGP Body of Knowledge on AI Integration and Human Oversight.

The correct answer is D because Privacy Impact Assessments are already structured processes designed to identify risks related to data use, processing, and potential harm to individuals. These assessments can be readily adapted to evaluate AI-specific risks, such as bias, automated decision-making impacts, and data protection concerns. AI governance frameworks emphasize leveraging existing compliance mechanisms to efficiently integrate AI risk management without duplicating processes. Privacy impact assessments align closely with AI risk evaluation because they examine how personal data is collected, used, and protected throughout the system lifecycle. Other options, such as penetration testing or training, focus on narrower objectives like security or awareness and are not comprehensive tools for identifying broader AI risks. Adapting PIAs supports a risk-based, scalable, and governance-aligned approach to managing AI systems.

Data minimization requires organizations to collect and process only personal information that is adequate, relevant, and necessary for the specified purpose. A basic to-do application may reasonably require limited account or contact information, but political opinions and trade-union affiliations have no apparent necessity for compiling, researching, or prioritizing tasks. Those attributes are also treated as particularly sensitive under European data-protection law. Privacy by design requires privacy safeguards and data-protection principles to be incorporated into the product from the design stage and reflected in default settings. Therefore, unnecessary collection at installation directly implicates both minimization and privacy by design. Purpose limitation may also become relevant, but explicit consent does not by itself cure unjustified overcollection. Transparency, portability, and access rights address different privacy obligations and do not best characterize the defect described here.

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When the accuracy of a model deteriorates, the best first step is to conduct champion/challenger testing. This involves deploying a new model (challenger) alongside the current model (champion) to compare their performance. This method helps identify if the new model can perform better under current conditions without immediately discarding the existing model. It provides a controlled environment to test improvements and understand the reasons behind the deterioration. This approach is preferable to directly replacing the model, performing audits, or running red-teaming exercises, which may be subsequent steps based on the findings from the champion/challenger testing.

The correct answer isD. Transparency obligations under data protection laws, such as GDPR and most AI governance frameworks, require thatusers whose data is being processedbe directly informed.

From the AIGP ILT Guide (Privacy Module):

“The user privacy notice must be updated to explain the nature of automated processing, the logic involved, and the significance and consequences for the data subject.”

Also, per AI Governance in Practice Report 2025 (Part III):

“Transparency obligations apply throughout the lifecycle of AI… Individuals must be informed about automated decision-making and profiling that may impact them.”

Unlike internal policies or general privacy notices,the user privacy noticeprovides direct transparency to theindividual data subjectsaffected by AI processing.

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In the machine learning context, feature engineering is the process of extracting attributes and variables from raw data to make it suitable for training an AI model. This step is crucial as it transforms raw data into meaningful features that can improve the model ' s accuracy and performance. Feature engineering involves selecting, modifying, and creating new features that help the model learn more effectively. Reference: AIGP Body of Knowledge on AI Model Development and Feature Engineering.

Defining the roles and responsibilities of AI stakeholders is crucial for encouraging accountability over AI systems. Clear delineation of who is responsible for different aspects of the AI lifecycle ensures that there is a person or team accountable for monitoring, maintaining, and addressing issues that arise. This accountability framework helps in ensuring that ethical standards and regulatory requirements are met, and it facilitates transparency and traceability in AI operations. By assigning specific roles, organizations can better manage and mitigate risks associated with AI deployment and use.

The most critical reason for documenting AI-related risks is toreduce exposure to legal, regulatory, and reputational liabilities. Clear documentation demonstrates thatrisks were identified, assessed, and addressed, which is essential for accountability and defensibility in the face of audits, litigation, or enforcement actions.

From theAI Governance in Practice Report 2025:

“An effective AI governance model is about collective responsibility… which should encompass oversight mechanisms such as privacy, accountability, compliance.” (p. 13)

“Accountability… is based on the idea that there should be a person or entity that is ultimately responsible for any harm resulting from the use of the data, algorithm and AI system ' s underlying processes.” (p. 28)

While transparency, alignment with standards, and knowledge sharing are all secondary benefits,risk documentation’s primary role is liability mitigation.

Business A is integrating a generative AI model licensed from a third party (Business B) and is primarily concerned with the risk of toxic or obscene outputs being delivered to users. In this scenario,testing and validationof the AI model for such content risks is the most direct and effective governance strategy.

According to theAI Governance in Practice Report 2025, organizations thatdeployAI must engage inperformance monitoring protocolsand ensure systems perform adequately for theirintended purposes, including filtering harmful content:

“Operational governance… development of: →Performance monitoring protocols to ensure systems perform adequately for their intended purposes.” (p. 12)

“Product governance... includes: →System impact assessments to identify and address risk prior to product development or deployment.” (p. 11)

Furthermore, under theEU AI Act, which sets the global standard many organizations aim to align with, there is a clear obligation to test and monitor systems for potential harmful behavior:

“The act imposes regulatory obligations… such as establishing appropriate accountability structures,assessing system impact, providing technical documentation,establishing risk management protocols and monitoring performance...” (p. 7)

Option B directly reflects this best practice ofpre-deployment testing and validationto ensure that the model aligns with Business A’s minimum content safety requirements.

Let’s now evaluate the incorrect options:

A. Fine-tuning on verified user-generated textmay improve model alignment but does not guarantee that the model will generalize correctly, especially if Business A lacks access to model internals (common in third-party licensing scenarios). Fine-tuning also introduces its own risks and may be contractually restricted.

C. A user reporting featureisreactive, not preventive. While helpful for long-term monitoring and mitigation, it does not prevent the initial harm of toxic outputs, which isBusiness A ' s primary concern.

D. Requesting documentation from Business Bis useful for transparency and risk management, but it does not replaceindependent verificationthat the model meets Business A’s content safety standards.

Thus,testing the model ' s behavior for unacceptable outputs before deploymentis the most aligned approach with AI governance best practices and obligations.

In the selection and implementation of the AI hiring tool, involving Finance and Legal is crucial. The Finance team is essential for assessing cost implications, budget considerations, and financial risks. The Legal team is necessary to ensure compliance with applicable laws and regulations, including those related to data privacy, employment, and anti-discrimination. Involving these stakeholders ensures a comprehensive evaluation of both the financial viability and legal compliance of the AI tool, mitigating potential risks and aligning with organizational objectives and regulatory requirements.

The primary purpose of an AI impact assessment is to anticipate and manage the potential risks and harms of an AI system. This includes identifying the possible negative outcomes and implementing measures to mitigate these risks. This process helps ensure that AI systems are developed and deployed in a manner that is ethically and socially responsible, addressing concerns such as bias, fairness, transparency, and accountability. The assessment often involves a thorough evaluation of the AI system ' s design, data inputs, outputs, and the potential impact on various stakeholders. This approach is crucial for maintaining public trust and adherence to regulatory requirements.

Developing an AI model internally creates a direct need for technical expertise covering model development, infrastructure, deployment, monitoring, retraining, security, testing, and maintenance. This makes A the strongest distinguishing issue. Third-party AI services can reduce this operational burden because the external provider supplies much of the model and underlying infrastructure; IAPP guidance specifically notes that third-party APIs can accelerate deployment and reduce the burden of managing complex infrastructure. B is incorrect because an internally developed model generally provides more , not less, technical control. C is not necessarily true because total costs depend on scale, licensing, infrastructure, and usage. D is also too absolute: although developing a system can create substantial provider obligations, responsibility under AI laws and governance frameworks may still be distributed among providers, deployers, vendors, processors, and other actors depending on the circumstances.

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Third-party risk management for AI systems should beproportional and risk-based, involvinginitial due diligenceandongoing monitoringthat reflects thelevel of risk posedby the third party ' s AI system.

From theAI Governance in Practice Report 2025:

“Third-party due diligence assessments to identify possible external risk and inform selection.” (p. 11)

“Legal due diligence may include verification of the personal data ' s lawful collection by the data broker, review of contractual obligations…” (p. 19)

Afocuses too narrowly on financial stability.

Cis excessive and not scalable or aligned with best practices.

Dinappropriately separates ethical and technical risks; both must be evaluated holistically.

Testing results need to bedocumented thoroughlyto ensuretraceability, accountability, and compliance. This is central to enabling audits, investigations, or regulatory inquiries into the system’s development and performance.

From theAI Governance in Practice Report 2025:

“Documentation and recordkeeping are essential components… to demonstrate AI system compliance, trace system behavior, and support audits and conformity assessments.” (p. 34–35)

“Maintaining audit trails across development and deployment enables transparency and accountability.” (p. 12)

AandBare benefits, but not theprimary governance justification.

D– Limiting future testing is not a recommended goal.

The NIST AI Risk Management Framework outlines several characteristics of trustworthy AI, including being secure and resilient, explainable and interpretable, and accountable and transparent. While being tested and effective is important, it is not explicitly listed as a characteristic of trustworthy AI in the NIST framework. The focus is more on the system ' s ability to function safely, securely, and transparently in a way that stakeholders can understand and trust. Reference: AIGP Body of Knowledge, NIST AI RMF section.

The most significant risk from combining the healthcare network’s existing data with the clinical research partner data is privacy risk. Combining data sets, especially in healthcare, often involves handling sensitive information that could lead to privacy breaches if not managed properly. De-identified data can still pose re-identification risks when combined with other data sets. Ensuring privacy involves implementing robust data protection measures, maintaining compliance with privacy regulations such as HIPAA, and conducting thorough privacy impact assessments. Reference: AIGP Body of Knowledge on Data Privacy and Security.

The primary concern for a company adopting a policy prohibiting the use of generative AI is the risk of accidental disclosure of confidential and proprietary information. Generative AI tools can inadvertently leak sensitive data during the creation process or through data sharing. This risk outweighs the other reasons listed, as protecting sensitive information is critical to maintaining the company’s competitive edge and legal compliance. This rationale is discussed in the sections on risk management and data privacy in the IAPP AIGP Body of Knowledge.

Anonymization is a privacy-enhancing technique that involves removing or permanently altering personal data elements to prevent the identification of individuals. In this case, the company obfuscated all personal data elements before training the model, which aligns with the definition of anonymization. This ensures that the data cannot be traced back to individuals, thereby protecting their privacy while still allowing the company to derive value from the dataset. Reference: AIGP Body of Knowledge, privacy-enhancing techniques section.

The correct answer is D because one of the most significant risks associated with generative AI is the potential leakage of sensitive, confidential, or proprietary information. AI governance frameworks emphasize data protection, confidentiality, and secure data handling as critical organizational responsibilities. When employees input sensitive data into generative AI tools, especially external or third-party systems, that information may be stored, reused, or exposed unintentionally. This creates legal, regulatory, and reputational risks. As a result, organizations may restrict or prohibit generative AI use to prevent unauthorized data disclosure. The other options relate to operational or business considerations, which are not primary governance drivers. Protecting sensitive information aligns with core AI governance principles such as privacy, security, and risk mitigation, making it the strongest justification for such a policy.

A privacy impact assessment (PIA) can be effectively leveraged to create an AI impact assessment. A PIA evaluates the potential privacy risks associated with the use of personal data and helps in implementing measures to mitigate those risks. Since AI systems often involve processing large amounts of personal data, the principles and methodologies of a PIA are highly applicable and can be extended to assess broader impacts, including ethical, social, and legal implications of AI. Reference: AIGP Body of Knowledge on Impact Assessments.

The correct answer is D because typical AI impact assessments focus on evaluating risks to individuals and society, particularly in areas such as fundamental rights, data protection, and safety. Frameworks like Data Protection Impact Assessments and Fundamental Rights Impact Assessments are designed to assess how AI systems may affect privacy, fairness, human rights, and potential harm to users. These assessments are core components of AI governance and are often required or recommended by regulations such as the GDPR and the EU AI Act. While options A, B, and C reference technical or operational considerations, they do not capture the broader societal and legal impacts that impact assessments are intended to address. AI governance emphasizes a human-centric approach, ensuring systems are safe, lawful, and respectful of individual rights before deployment.

The correct answer is D because conformity requirements are primarily intended to ensure that AI systems meet applicable legal, regulatory, and safety standards before deployment. AI governance frameworks, including the EU AI Act and international standards, require conformity assessments to verify that systems are safe, reliable, and compliant with risk management, documentation, and performance obligations. These assessments help identify and mitigate risks prior to market release, particularly for high-risk AI systems that may impact individuals’ rights, health, or safety. Conformity ensures accountability, transparency, and trustworthiness, which are central principles of responsible AI governance. The other options relate to usability or technical considerations, but they do not address the primary purpose of conformity assessments, which is regulatory compliance and risk mitigation prior to deployment.

Paid public generative AI services can be attractive because organizations can adopt them rapidly without developing and maintaining foundational models themselves. Commercial offerings may also provide organizational privacy, security, access-management, and administrative controls beyond those available through basic public access, while centrally managed services can receive frequent provider-driven feature enhancements. These characteristics support A, B, and C. However, payment does not guarantee transparency into proprietary model architecture, training data, weights, or decision processes, so D is incorrect. Nor does a paid service eliminate concerns regarding training-data provenance, intellectual property, personal information, confidential prompts, data retention, or generated outputs; consequently, E is incorrect. AI governance still requires vendor due diligence, contractual safeguards, acceptable-use controls, security assessment, and continuing monitoring when organizations depend on third-party generative AI services.

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The correct answer isB – The tech company. The party thatdevelops and trains the foundational modelis responsible for ensuring thelawful collection of training data.

From the AIGP ILT Guide – Foundational Models & Data Governance:

“Responsibility for the lawfulness of data collection typically lies with the party that trains the model—usually the provider or developer of the foundational model.”

AI Governance in Practice Report 2025 confirms:

“General Purpose AI providers are required to ensure that training data is lawfully acquired, including compliance with intellectual property and privacy requirements.”

The marketing agency is only auserordownstream integrator, not responsible for original data collection.

TheEU AI Actapplies extraterritorially, meaning it affects entitiesoutside the EUwhen their AI systemsimpact individuals within the EU. However, it doesnotapply to systems that are developed, sold, or usedentirely outside of the EU—such as in theUK, unless they affect the EU market or individuals.

From theAI Governance in Practice Report 2025:

“The act imposes regulatory obligations… depending on their capabilities, reach and computing power, certain GPAI systems are considered to present systemic risk and attract broadly similar obligations to those applicable to high-risk AI systems.” (p. 7)

“The EU AI Act is the world’s first comprehensive AI regulation… requirements apply to providers, deployers, importers, and distributors of AI systems when such systems are placed on the EU market.” (p. 7–8)

Thus:

A. Open source releasedoes not exclude applicability if deployed in the EU.

B. Deployment at an EU borderclearly invokes jurisdiction.

D. Training by an EU companycreates jurisdictional links.

C. Deployment only at UK checkpoints, withno EU use or impact, isoutside scope.

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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The correct answer isB – Procedural. TheOECD Framework for Classifying AI Systemscategorizescodes of conduct and collective agreementsasprocedural toolsbecause they guide internal governance and decision-making processes.

From the AIGP ILT Participant Guide – Global Governance Models:

“Procedural tools include internal codes of conduct, collective agreements, and procedural audits that guide governance without necessarily involving technical measurement.”

AI Governance in Practice Report 2025 elaborates:

“These procedural tools support internal accountability mechanisms and ethics compliance frameworks… they are part of soft governance.”

These toolsdo not measure or analyze technical performance, hence they arenot technical or analytic.

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Developing a social media presence for a non-profit is best served by non-AI solutions. This task primarily involves content creation, community engagement, and strategic planning, which are effectively managed by human expertise and traditional marketing tools. AI is more suitable for tasks requiring automation, large-scale data analysis, and personalized recommendations, such as e-commerce personalization, forecasting cost overruns, or automating customer service responses. Reference: AIGP Body of Knowledge on AI Use Cases and Applications.

The OECD ' s Ethical AI Governance Framework aims to ensure that AI development and deployment are carried out ethically while fostering innovation. The framework includes principles like transparency, accountability, and human rights protections to prevent societal harm. It does not focus solely on technical design or post-deployment monitoring (C), nor does it establish industry-specific requirements (B). While explainability is important, the primary goal is to balance innovation with ethical considerations (D).

When designing an integrated compliance strategy for responsible AI, the least likely step would be employing a new software platform to modernize existing compliance processes. While modernizing compliance processes is beneficial, it is not as directly related to the strategic integration of ethical principles and stakeholder concerns. More critical steps include conducting assessments of existing compliance programs to identify overlaps and integration points, consulting experts on ethical principles, and launching surveys to understand stakeholder concerns. These steps ensure that the compliance strategy is comprehensive and aligned with responsible AI principles. Reference: AIGP Body of Knowledge on AI Governance and Compliance Integration.

The correct answer isA. TheAcceptable Use Policy (AUP)sets the primary terms and conditions under which the AI model can be used, including limitations, prohibited uses, and operational constraints.

From the AIGP ILT Guide:

“The AUP is the most critical document to assess what you can and cannot do with the AI system. It governs use cases, outlines forbidden uses (e.g., disinformation), and supports responsible AI practices.”

Also confirmed in the AI Governance in Practice Report 2025 (Third-Party AI Assurance section):

“Reviewing and adhering to the acceptable use policy ensures that the model is being used in a manner that aligns with both provider expectations and ethical AI practices.”

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In selecting the specific type of algorithm for the AI solution, the healthcare network ' s data science team is most important. This team possesses the technical expertise and understanding of the data, the clinical context, and the performance requirements needed to make an informed decision about which algorithm is most suitable. While the cloud provider and consulting firm can offer support and infrastructure, and the AI governance committee provides oversight, the data science team’s specialized knowledge is crucial for selecting and implementing the appropriate algorithm. Reference: AIGP Body of Knowledge, AI governance and team roles section.

The correct answer is C, the Federal Trade Commission. The FTC plays a central role in U.S. AI governance by enforcing consumer protection and unfair or deceptive practices laws. In the context of AI systems such as companion chatbots, the FTC has authority to investigate risks related to user harm, transparency, safety, and misleading claims. AI governance frameworks emphasize regulatory oversight where AI systems may impact individuals psychologically, financially, or socially. Agencies like the FTC focus on ensuring that companies deploying AI systems do not cause harm through unsafe or de ceptive practices and that they provide adequate disclosures about risks and system behavior. This aligns with broader AI governance principles of accountability, transparency, and risk management highlighted in the AI Governance in Practice Report 2024 , which stresses the importance of regulatory involvement in managing AI-related risks.

According to the EU AI Act, providers of high-risk AI systems are required to register with an EU oversight agency before these systems can be placed on the market. This requirement is part of the Act ' s framework to ensure that high-risk AI systems comply with stringent safety, transparency, and accountability standards. High-risk systems are those that pose significant risks to health, safety, or fundamental rights. Registration with oversight agencies helps facilitate ongoing monitoring and enforcement of compliance with the Act ' s provisions. Systems categorized under other criteria, such as those trained on sensitive personal data or exhibiting " strong " general intelligence, also fall under scrutiny but are primarily covered under different regulatory requirements or classifications.

After completing model testing and validation, the most important step prior to deploying the model into production is to perform a readiness assessment. This assessment ensures that the model is fully prepared for deployment, addressing any potential issues related to infrastructure, performance, security, and compliance. It verifies that the model meets all necessary criteria for a successful launch. Other steps, such as defining a model-validation methodology, documenting maintenance teams and processes, and identifying known edge cases, are also important but come secondary to confirming overall readiness. Reference: AIGP Body of Knowledge on Deployment Readiness.

According to the GDPR, individuals have the right to not be subject to a decision based solely on automated processing, including profiling, which produces legal effects or similarly significantly affects them. However, there are exceptions to this right, one of which is when the decision is based on the data subject ' s explicit consent. This means that if an individual explicitly consents to the automated decision-making process, there is no requirement for human intervention to confirm or replace the decision. This exception ensures that individuals can have control over automated decisions that affect them, provided they have given clear and informed consent.

The most comprehensive way to identify a full range of risks — legal, ethical, operational, and societal — for a new AI model is through aformal impact assessment, such as aData Protection Impact Assessment (DPIA)orAlgorithmic Impact Assessment.

From theAI Governance in Practice Report 2025:

“Risk-based approaches are often distilled into organizational risk management efforts, which put impact assessments at the heart of deciding whether harm can be reduced.” (p. 29)

“DPIAs… help organizations identify, analyze and minimize data-related risks and demonstrate accountability.” (p. 30)

A. Environmental scanis too general.

B. Red teamingis useful for adversarial risk but not broad.

C. Integration testingfocuses on technical/system compatibility, not overall risk.

Third-party AI governance introduces issues that arise specifically because an organization depends on an external model provider. These include limited visibility into model architecture, training sources, capabilities and limitations; cybersecurity and information-security risks created through external integrations; and determining contractual responsibility and liability between the organization and vendor. These considerations make A, C, and D directly relevant to third-party governance. Back testing, by contrast, is primarily a model testing or validation methodology rather than a compliance consideration specific to the third-party relationship. Testing third-party AI systems remains an important governance practice, but the term " back testing " itself describes performance evaluation rather than vendor governance. NIST guidance emphasizes third-party transparency, due diligence, security, procurement controls, contractual expectations, and continuing risk management when organizations acquire or integrate external AI systems.

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Risk impact estimation occurs in the design phase of the AI life cycle. This step involves evaluatingpotential risks associated with the AI system and estimating their impacts to ensure that appropriate mitigation strategies are in place. It helps in identifying and addressing potential issues early in the design process, ensuring the development of a robust and reliable AI system. Reference: AIGP Body of Knowledge on AI Design and Risk Management.

Under the EU AI Act, high-risk AI systems like Crime Buster 9619 would require a detailed conformity assessment before being deployed in the EU market. This assessment ensures that the AI system complies with all relevant regulations and standards, addressing potential risks related to privacy, security, and discrimination. The company would not need to register the tool with the EU database (A), seek approval from an EU authority (B), or face a ban (D) as long as it meets the necessary conformity requirements​​​​.

The 1956 Dartmouth summer research project on AI is best known as a meeting focused on the founding of the AI field. This conference is historically significant because it marked the formal beginning of artificial intelligence as an academic discipline. The term " artificial intelligence " was coined during this event, and it laid the foundation for future research and development in AI.

The greatest risk from AI systems generatingrealistic synthetic mediaisdownstream harm, such asdeepfakes, misinformation, reputational damage, and erosion of trust.

From theAI Governance in Practice Report 2025:

“With generative AI, downstream harms such as deception, reputational damage, misinformation, and manipulation can emerge even if original use was lawful.” (p. 55–56)

The EU AI Act categorizes certain applications of AI as high-risk due to their potential impact on fundamental rights and safety. High-risk applications include those used in critical areas such as employment, education, and essential public services. A government-run social scoring tool, which assesses individuals based on their social behavior or perceived trustworthiness, falls under this category because of its profound implications for privacy, fairness, and individual rights. This contrasts with other AI applications like resume scanning tools or customer service chatbots, which are generally not classified as high-risk under the EU AI Act.

The correct answer is A because developing a social media presence typically does not require AI and can be effectively achieved through traditional digital marketing strategies, content planning, and manual engagement. AI governance principles emphasize that organizations should first determine whether AI is necessary or proportionate to the problem being solved. Using AI where simpler, deterministic, or human-driven solutions suffice can introduce unnecessary complexity, cost, and risk. In contrast, options B, C, and D involve tasks such as campaign optimization, personalization, and automation, which benefit significantly from AI capabilities like pattern recognition, predictive analytics, and natural language processing. Responsible AI governance encourages a “fit-for-purpose” approach, ensuring AI is only deployed when it provides clear added value over non-AI alternatives.

Theprimary considerationin selecting any AI system, especially aproprietary model, is itsfit for business purpose. Whether it serves the intended goals is foundational before evaluating technical or governance features.

From theAI Governance in Practice Report 2025:

“AI governance starts with defining the corporate strategy for AI… and aligning systems with business purpose and operational context.” (p. 11)

B, C, Dare relevant for evaluation, but onlyafterconfirming business applicability.

The three most directly relevant risks are misinformation, source credibility, and unauthorized or inappropriate access to restricted information. Generative AI can produce inaccurate or misleading summaries, making B an important information-integrity consideration. Because the system crawls online sources and transforms them into authoritative-looking summaries, the process used to determine credible sources is also essential, making D correct. Accessing information from restricted social-media profiles raises significant privacy, authorization, and data-governance concerns, supporting E. NIST ' s Generative AI Profile identifies confabulation, information integrity, privacy, and content provenance as important generative-AI risks. Environmental impact is a legitimate broader AI governance consideration, but it is less specific to this particular web-crawling and profiling use case than B, D, and E. Physical safety procedures have no material connection to the described system.

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The correct answer is D because it directly reflects core data and model quality principles such as accuracy, performance consistency, and real-world effectiveness across different user groups. AI governance frameworks emphasize that quality must be evaluated based on whether outputs are accurate, complete, and fit for purpose in real-world conditions. Measuring accuracy by user group also supports fairness and bias detection, which are essential components of trustworthy AI. Option D captures outcome-based performance and aligns with continuous monitoring expectations across the AI lifecycle. In contrast, options A and C focus more on operational or technical metrics, while B reflects user sentiment rather than objective quality. According to AI governance principles, high-quality AI systems require ongoing evaluation of outputs against real-world results to ensure reliability, validity, and safe deployment.

Once a company moves from being adeployerto also acting as aprovider or developer, it assumesnew obligationsunder regulations like the EU AI Act. One of the core requirements for providers is to produce and maintaintechnical documentation, including descriptions of the model, associated risks, and mitigation strategies.

From theAI Governance in Practice Report 2025:

“Providers of high-risk AI systems must draw up technical documentation demonstrating the system’s conformity with the requirements... including potential risks and safeguards applied.” (p. 34)

“This documentation must be available before placing the system on the market.” (p. 35)

Retraining the model with data that reflects demographic parity is the best strategy to mitigate the bias uncovered in the loan applications. This approach addresses the root cause of the bias by ensuring that the training data is representative and balanced, leading to more equitable decision-making by the AI model.

The correct answer isA. Sending ads to construction companies (business entities) rather than individual workers isa business targeting decision, not inherently a biased AI output.

From the AIGP ILT Participant Guide – Bias & Fairness Module:

“Biased outputs often include stereotyping, exclusion of underrepresented groups, or reinforcing harmful societal assumptions.”

Examples likeinsufficient representation of minority groupsorgender-stereotyping in visuals or languageare typical manifestations of bias.

AI Governance in Practice Report 2025 also notes:

“Bias in generative models may manifest in representation gaps, stereotyping, or unequal performance across demographic groups.”

Option A, by contrast, describes adistribution strategy, not a bias generated by the AI model.

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The correct answer is A because the most immediate governance step when a significant AI issue is identified is to formally log the incident within the organization’s incident management system. AI governance frameworks emphasize structured incident response processes to ensure issues are properly documented, tracked, escalated, and addressed in a controlled manner. Logging the incident triggers established workflows, including investigation, stakeholder notification, and remediation planning. While notifying stakeholders, auditing the system, or retraining the model are important follow-up actions, they should occur after the issue is formally recorded and managed through governance channels. This ensures accountability, traceability, and consistent handling of risks, particularly in cases involving bias and potential discrimination.

The Singapore Model AI Governance Framework recommends several measures to promote the responsible use of AI, such as determining the level of human involvement in decision-making, adapting governance structures, and establishing communications and collaboration among stakeholders. However, employing human-over-the-loop protocols is not specifically mentioned in this framework. The focus is more on integrating human oversight appropriately within the decision-making process rather than exclusively employing such protocols. Reference: AIGP Body of Knowledge, section on AI governance frameworks.