- A
Payment Card Industry Data Security Standard (PCI DSS)
Why wrong: PCI DSS is for cardholder data, not AI regulation.
- B
General Data Protection Regulation (GDPR)
GDPR specifically addresses automated individual decision-making and profiling.
- C
Health Insurance Portability and Accountability Act (HIPAA)
Why wrong: HIPAA is for protected health information, not general AI governance.
- D
Sarbanes-Oxley Act (SOX)
Why wrong: SOX pertains to financial disclosures.
Question 25 of 1,000
GDPR Automated Decision-Making and Profiling
This AI0-001 practice question tests your understanding of ai security, ethics and governance. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
An organization deploys an AI system that processes personal data of EU citizens. Which regulatory framework imposes strict requirements on automated decision-making and profiling?
Quick Answer
The General Data Protection Regulation (GDPR) is the correct regulatory framework because it is the only one among the options that specifically governs how organizations may use automated decision-making and profiling when processing the personal data of EU citizens. Under Articles 22 and 35, the GDPR grants individuals the right not to be subject to a decision based solely on automated processing, including profiling, which produces legal effects or similarly significant impacts, and it mandates Data Protection Impact Assessments for high-risk AI systems. On the CompTIA AI+ AI0-001 exam, this question tests your ability to distinguish global privacy laws from sector-specific US regulations; a common trap is confusing GDPR with HIPAA, which only applies to US healthcare data, or PCI DSS, which governs payment card security. To remember this, think of the acronym G-PRO: GDPR governs Profiling and automated decisions for Residents of the EU, while other laws are siloed by industry or geography.
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
✓
General Data Protection Regulation (GDPR)
The General Data Protection Regulation (GDPR) is the correct regulatory framework because it specifically governs the processing of personal data of EU citizens and imposes strict requirements on automated decision-making and profiling under Article 22. This article grants individuals the right not to be subject to a decision based solely on automated processing, including profiling, which produces legal effects or similarly significant effects. The GDPR also mandates data protection impact assessments and transparency obligations for such AI-driven processing.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Payment Card Industry Data Security Standard (PCI DSS)
Why it's wrong here
PCI DSS is for cardholder data, not AI regulation.
- ✓
General Data Protection Regulation (GDPR)
Why this is correct
GDPR specifically addresses automated individual decision-making and profiling.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Health Insurance Portability and Accountability Act (HIPAA)
Why it's wrong here
HIPAA is for protected health information, not general AI governance.
- ✗
Sarbanes-Oxley Act (SOX)
Why it's wrong here
SOX pertains to financial disclosures.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Cisco often tests candidates' ability to distinguish between data privacy regulations (GDPR) and industry-specific security standards (PCI DSS, HIPAA, SOX), trapping those who confuse data security with data protection governance for AI systems.
Detailed technical explanation
How to think about this question
Under the hood, GDPR Article 22 requires that any automated decision-making system, such as a credit-scoring AI, must provide meaningful information about the logic involved and allow for human intervention. A real-world scenario is a hiring AI that screens CVs: if it rejects a candidate solely based on a profiling algorithm, the candidate has the right to contest the decision and request manual review. This contrasts with PCI DSS, which focuses on encryption and access controls for cardholder data, not algorithmic transparency.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the AI0-001 exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this AI0-001 question test?
AI Security, Ethics and Governance — This question tests AI Security, Ethics and Governance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: General Data Protection Regulation (GDPR) — The General Data Protection Regulation (GDPR) is the correct regulatory framework because it specifically governs the processing of personal data of EU citizens and imposes strict requirements on automated decision-making and profiling under Article 22. This article grants individuals the right not to be subject to a decision based solely on automated processing, including profiling, which produces legal effects or similarly significant effects. The GDPR also mandates data protection impact assessments and transparency obligations for such AI-driven processing.
What should I do if I get this AI0-001 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jul 4, 2026
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