AI Associate Ethical AI and Data Privacy Practice Question
A company is subject to GDPR and wants to use customer purchase history to predict future buying behavior. What is the primary requirement they must fulfill under GDPR when using customer data for AI predictions?
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
✓
Obtain explicit consent from customers to use their data for AI predictions
GDPR requires a lawful basis for processing personal data, such as consent or legitimate interest. The right to explanation is also relevant for automated decisions, but the primary requirement is obtaining a lawful basis (e.g., consent) before using the data.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Obtain explicit consent from customers to use their data for AI predictions
Why this is correct
GDPR requires a lawful basis; consent is often required for processing personal data for profiling or predictive analytics.
- ✗
Ensure the AI model is hosted in the same country as the customer
Why it's wrong here
Data localization may be a separate requirement but is not the primary GDPR requirement for using data for predictions.
- ✗
Provide a discount to customers who opt in to data usage
Why it's wrong here
Incentives are not required by GDPR; consent must be freely given.
- ✗
Anonymize all customer data before training the model
Why it's wrong here
Anonymization can reduce privacy risks but is not mandatory if you have a lawful basis; it is one possible approach.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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