AI0-001 AI Governance and Ethics Practice Question
A software company is developing an AI-powered code generation tool that suggests code snippets to developers. The company wants to align with the EU AI Act's transparency requirements. Which two actions should the company take? (Choose two.)
⚠ Common exam trap
The trap here is conflating transparency with open-sourcing training data or obtaining consent, which are not required by the EU AI Act for this type of tool.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Provide documentation to developers about the AI system's capabilities and limitations
The EU AI Act's transparency obligations for AI systems that interact with users require clear disclosure that the user is interacting with an AI, and for providers to supply instructions for use that describe capabilities and limitations. For a code generation tool, informing developers that suggestions are AI-generated and documenting the tool's limitations fulfills these duties.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Provide documentation to developers about the AI system's capabilities and limitations
Why this is correct
The EU AI Act requires that providers of certain AI systems supply instructions for use, including information about the system's capabilities and limitations. For a code generation tool, documenting potential inaccuracies or biases helps developers use the tool responsibly and aligns with transparency obligations.
- ✗
Publish the full training dataset used to train the code generation model
Why it's wrong here
Publishing the full training dataset is not required by the EU AI Act and could violate copyright or trade secrets. Transparency obligations focus on informing users about the AI's operation and limitations, not on disclosing proprietary training data. The Act does require data governance for high-risk systems, but this tool is not necessarily high risk.
- ✗
Ensure the AI system marks AI-generated code with a machine-readable watermark
Why it's wrong here
The EU AI Act's transparency requirements for AI-generated content focus on deepfakes and certain text published to inform the public, not on code suggestions. Watermarking code is not a mandated transparency measure under the Act, and it could interfere with compilation or version control. The obligation is to inform users, not to watermark code.
- ✓
Clearly disclose that the code suggestions are generated by an AI system and not by a human
Why this is correct
The EU AI Act requires that users be informed when they interact with an AI system, unless it is obvious from the context. Developers using a code generation tool may not always know whether suggestions are AI-generated, so explicit disclosure ensures transparency and aligns with the Act's requirements.
- ✗
Obtain explicit consent from every developer before they use the tool
Why it's wrong here
The EU AI Act does not require explicit consent for using an AI code generation tool. Consent is a GDPR concept for processing personal data, but this scenario involves tool usage, not personal data processing. The Act's transparency requirements are about informing users, not obtaining consent.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official CompTIA exam blueprint
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