AML Regulatory Compliance & Legal Framework 3

Question 1

Which provision of GDPR specifically grants individuals the right to contest automated decisions that produce legal or similarly significant effects?

Accepted Answer

Article 22

Answer

GDPR Article 22 grants individuals the right not to be subject to solely automated decisions with significant effects and to request human review.

Question 2

A hospital deploys an ML triage model. Which regulatory framework is most directly applicable in the US?

Accepted Answer

FDA Software as a Medical Device (SaMD) guidance

Answer

The FDA regulates ML-based software used in clinical decision-making as Software as a Medical Device (SaMD) under its digital health framework.

Question 3

The concept of 'red-teaming' in the context of AI regulatory compliance refers to:

Accepted Answer

Adversarial testing to identify model failures, biases, and safety risks

Answer

Red-teaming in AI compliance involves adversarially probing models to uncover failure modes, harmful outputs, and systemic biases before and after deployment.

Question 4

Section 5 of the FTC Act is relevant to ML deployments because it prohibits:

Accepted Answer

Unfair or deceptive acts or practices, including misleading algorithmic outputs

Answer

The FTC uses Section 5 authority to act against companies whose ML systems produce deceptive or unfair outcomes for consumers.

Question 5

Which of the following is a core requirement of the Colorado AI Act (SB 21-169) for high-risk AI systems?

Accepted Answer

Conducting impact assessments and providing adverse action notices

Answer

Colorado's AI Act requires developers and deployers of high-risk AI to conduct impact assessments and provide consumers with adverse action notices and explanations.

(AML) Advanced Machine Learning Certification Practice Test

(AML) Advanced Machine Learning Certification Practice Test

AML Regulatory Compliance & Legal Framework 3