Question 1
IIAn organization deploys an AI system that processes personal information as part of its operation. Based on the source material, how should existing data privacy laws be treated in relation to that AI activity?
Correct answer: B
Explanation
Existing data privacy laws apply to AI systems when those systems process personal information as part of AI-related activities. The presence of AI does not place the processing outside the scope of privacy law. — aigp-study-guide-2026.pdf
Why each option is right or wrong
A. Data privacy laws apply only if the AI system makes fully automated decisions without human involvement.
Data privacy laws apply to AI systems and AI-related processing activities, not only to fully automated decisions.
B. Existing data privacy laws apply to AI systems and AI-related processing activities involving personal information.
The source material states that existing data privacy laws cover AI systems and AI-related processing activities. Because the scenario involves an AI system processing personal information, that activity falls within the application of those laws.
C. Data privacy laws apply only when AI is used for consumer marketing rather than internal operational purposes.
The source material covers AI systems and AI-related processing activities generally, without limiting application to marketing uses.
D. Existing privacy laws do not apply unless a new AI-specific privacy statute has been enacted.
Existing data privacy laws can apply to AI even without a separate AI-specific privacy statute.