Artificial Intelligence Governance Professional AIGP · Free Practice Question Medium
Question 28
A financial services provider deploys an AI to monitor transaction patterns for fraud and considers using the same data for targeted marketing. What privacy law requirement is most relevant in this scenario?
- A Assume consent since the data was collected for fraud detection
- B Obtain new user consent for marketing and provide clear notice of the change
- C Only inform users in annual privacy policy updates
- D Limit data use only to fraud detection purposes
Reveal correct answer
Correct answer: B
Explanation
Notice, consent, and purpose limitation ensure data is not repurposed for AI applications beyond the scope originally agreed by users.A. Fraud monitoring consent does not extend to marketing purposes.
B. Using transaction data for a different purpose demands explicit notice and user consent.
C. Annual updates are insufficient for material changes in data use.
D. Limiting to original purpose is safe, but using for new purposes requires compliance with consent requirements.
Discussion
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