QuestionQ56

AI Governance and Risk

A retail organization uses an AI model to analyze customers’ purchase histories to provide personalized discounts. Which of the following practices is the MOST ethical use of customer data?

Explanation

Ethical use of customer purchase data requires informed, explicit consent for its processing and a practical ability for customers to withdraw or opt out. This preserves individual control over personal data and limits processing to an authorized purpose. The UK Information Commissioner’s Office states that valid consent requires a clear affirmative action and that people must be able to withdraw consent at any time.

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