- A
Enable prompt logging and retention for 5 years for auditing
Why wrong: GDPR requires data minimization; retaining logs for 5 years may be excessive unless justified.
- B
Use a model that has been fine-tuned on all customer transcripts globally
Why wrong: This would involve processing personal data from EU users without proper controls.
- C
Use a non-EU region to reduce latency
Why wrong: This violates data residency requirements.
- D
Configure the Vertex AI endpoint to use an EU region for data processing
Using an EU region ensures data residency within the EU.
- E
Disable prompt logging entirely to minimize data processing
Minimizing data processing aligns with GDPR's data minimization principle.
Question 808 of 997
Generative AI Leader Data residency Practice Question
This Generative AI Leader practice question tests your understanding of responsible ai and data governance. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. A key principle to apply: data residency. 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.
A data architect is designing a system that uses a generative AI model to summarize customer support transcripts. The system must comply with GDPR and company policy requiring data residency in the EU. Which TWO controls should they implement?
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
✓
Configure the Vertex AI endpoint to use an EU region for data processing
Option D is correct because configuring the Vertex AI endpoint to use an EU region ensures that all data processing, including model inference and any intermediate data handling, occurs within the EU, satisfying GDPR data residency requirements. This control directly enforces geographic data localization without relying on data transfer mechanisms like Standard Contractual Clauses (SCCs).
Key principle: Data residency
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Enable prompt logging and retention for 5 years for auditing
Why it's wrong here
GDPR requires data minimization; retaining logs for 5 years may be excessive unless justified.
- ✗
Use a model that has been fine-tuned on all customer transcripts globally
Why it's wrong here
This would involve processing personal data from EU users without proper controls.
- ✗
Use a non-EU region to reduce latency
Why it's wrong here
This violates data residency requirements.
- ✓
Configure the Vertex AI endpoint to use an EU region for data processing
Why this is correct
Using an EU region ensures data residency within the EU.
Related concept
Data residency
- ✓
Disable prompt logging entirely to minimize data processing
Why this is correct
Minimizing data processing aligns with GDPR's data minimization principle.
Related concept
Data residency
Common exam traps
Common exam trap: answer the scenario, not the keyword
A common pitfall is assuming that disabling prompt logging entirely is not GDPR compliant because auditing is required. However, GDPR does not mandate logging if data processing is minimized; in this scenario, disabling logging reduces data exposure and can be a valid control when combined with other measures like region restriction.
Detailed technical explanation
How to think about this question
Vertex AI endpoints allow you to specify a region for model deployment, which determines where the underlying compute resources (e.g., TPUs or GPUs) and data processing occur; this is enforced at the infrastructure level via Google Cloud's regional endpoints (e.g., europe-west4). Disabling prompt logging entirely (Option E) is a valid control under GDPR's data minimization principle, as it avoids storing any user input data that could contain personal information, but it must be balanced with operational needs like debugging or compliance audits, where anonymized or pseudonymized logging might be preferred.
KKey Concepts to Remember
- Data residency
- Data minimization
- Vertex AI endpoints
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
Data residency
Real-world example
How this comes up in practice
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Data residency Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
Review data residency, then practise related Generative AI Leader questions on the same topic to reinforce the concept.
- →
Responsible AI and Data Governance — study guide chapter
Learn the concepts, then practise the questions
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Responsible AI and Data Governance practice questions
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FAQ
Questions learners often ask
What does this Generative AI Leader question test?
Responsible AI and Data Governance — This question tests Responsible AI and Data Governance — Data residency.
What is the correct answer to this question?
The correct answer is: Configure the Vertex AI endpoint to use an EU region for data processing — Option D is correct because configuring the Vertex AI endpoint to use an EU region ensures that all data processing, including model inference and any intermediate data handling, occurs within the EU, satisfying GDPR data residency requirements. This control directly enforces geographic data localization without relying on data transfer mechanisms like Standard Contractual Clauses (SCCs).
What should I do if I get this Generative AI Leader question wrong?
Review data residency, then practise related Generative AI Leader questions on the same topic to reinforce the concept.
What is the key concept behind this question?
Data residency
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Last reviewed: Jul 4, 2026
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