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Generative AI Leader Practice Question: A healthcare organization is deploying a…

A healthcare organization is deploying a generative AI application that processes Protected Health Information (PHI). They must ensure compliance with HIPAA. Which Google Cloud offering should they use?

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

✓

Vertex AI APIs with data residency and HIPAA compliance enabled

Vertex AI APIs with data residency and HIPAA compliance enabled is the correct choice because it meets regulatory requirements for PHI. Other options either lack HIPAA coverage or introduce unnecessary complexity.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✗

    Google Workspace with Duet AI

    Why it's wrong here

    Google Workspace with Duet AI covers productivity apps, not a BAA-backed generative AI platform for building PHI-processing applications, so it cannot satisfy HIPAA for this workload. It suits drafting documents and email assistance inside Workspace, where Vertex AI with a BAA would be the compliant choice.

  • ✗

    Model Garden open-source models deployed on Compute Engine

    Why it's wrong here

    Self-deployed open-source models on Compute Engine carry no Google BAA covering the model or its outputs, leaving PHI handling outside HIPAA safeguards. It appeals when teams want full control over weights and hosting, but Vertex AI, which includes BAA coverage, is the compliant platform for PHI.

  • ✗

    Gemini API with default settings

    Why it's wrong here

    Default Gemini API settings do not include a HIPAA Business Associate Agreement or the data-handling controls PHI demands, so protected data could be used or retained outside compliance boundaries. It tempts teams wanting quick prototyping, but Vertex AI on Google Cloud with a signed BAA is the compliant route.

  • ✓

    Vertex AI APIs with data residency and HIPAA compliance enabled

    Why this is correct

    Vertex AI APIs with data residency and HIPAA compliance enabled provide a Business Associate Agreement and keep PHI within approved regions, satisfying HIPAA's safeguards for protected health information. Generic AI services lacking these contractual and residency controls cannot lawfully process PHI.

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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.