Generative AI Leader Practice Question: Business Strategies for Generative AI Solutions
A financial services firm must comply with regulations when using gen AI. Which two measures are critical?
⚠ Common exam trap
Google Cloud often tests the misconception that 'closed-source models are inherently more compliant' or that 'synthetic data eliminates privacy risks,' when in reality, compliance hinges on transparency, auditability, and risk assessment rather than the model's source or data origin.
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
✓
Implement audit trails
Audit trails are critical for compliance because they provide a tamper-evident, chronological record of all AI model inputs, outputs, and decisions. This enables firms to demonstrate regulatory adherence (e.g., under GDPR or SOX) by reconstructing the exact sequence of events that led to a specific AI-generated output, which is essential for accountability and forensic review.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Implement audit trails
Why this is correct
Audit trails provide accountability and support regulatory reviews.
- ✗
Deploy without risk assessment
Why it's wrong here
Risk assessment is mandatory to identify and mitigate compliance issues.
- ✗
Use a closed-source model
Why it's wrong here
Closed-source does not inherently ensure compliance; transparency is needed.
- ✓
Use explainable AI
Why this is correct
Explainability is often required for model decisions in regulated industries.
- ✗
Use only synthetic data
Why it's wrong here
Synthetic data may not capture all real-world scenarios and can introduce risks.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This Generative AI Leader practice question is part of Courseiva's free Google Cloud certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the Generative AI Leader exam.