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CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Artificial Intelligence - Introduction and Basics

An Indian e-commerce firm trains a recommendation model on customer purchase histories. Which statement correctly identifies a data-protection risk of this AI use?

The correct statement is that personal data may be used beyond the purpose the customer consented to. AI training can stretch data use, raising consent and purpose-limitation concerns. Training does not anonymise data or remove the data protection obligations of the firm.

  1. APersonal data may be processed for purposes beyond what the customer agreed to, creating consent and purpose-limitation issuesCorrect
  2. BPersonal data used for training automatically becomes anonymous once a model is trained
  3. CData protection rules do not apply to data used only for training models
  4. DCustomers lose all rights over their data once it is fed to an algorithm

Explanation

Using personal data for training can exceed the purpose for which consent was given, raising consent and purpose-limitation concerns under data protection law. Training does not automatically anonymise data, and rules are not switched off for training.

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