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Actual exam question for IAPP's AIGP exam Question #: 160 Topic #: 2
CASE STUDY A global marketing agency is adapting a large language model ("LLM") to generate content for an upcoming marketing campaign for a client's new product: a hard hat designed for construction workers of any gender to better protect them from head injuries. The marketing agency is accessing the LLM through an application programming interface ("API")developed by a third-party technology company. They want to generate text to be used for targeted advertising communications that highlight the benefits of the hard hat to potential purchasers. Both the marketing agency and the technology company have taken reasonable steps to address Al governance. The marketing company has: * Entered into a contract with the technology company with suitable representations and warranties. * Completed an impact assessment on the LLM for this intended use. * Built technical guidance on how to measure and mitigate bias in the LLM. * Enabled technical aspects of transparency, explainability, robustness and privacy. * Followed applicable regulatory requirements. * Created specific legal statements and disclosures regarding the use of the Al on its client's advertising. The technology company has: * Provided guidance and resources to developers to address environmental concerns. * Build technical guidance on how to measure and mitigate bias in the LLM. * Provided tools and resources to measure bias specific to the LLM. * Enabled technical aspects of transparency, explainability, robustness and privacy. * Mapped and mitigated potential societal harms and large-scale impacts. * Followed applicable regulatory requirements and industry standards. * Created specific legal statements and disclosures regarding the LLM. including with respect to IP and rights to data. The agency has taken governance actions such as: * Conducting an impact assessment * Providing legal disclosures * Enabling bias mitigation and explainability * Complying with regulatory requirements Which of the following should be included in the marketing company's disclosures about the use of the LLM EXCEPT?
The correct answer isB - Proprietary methods. While transparency is important, organizations arenot obligated to disclose proprietary algorithms, methods, or trade secretsin public disclosures. From the AIGP Body of Knowledge - Transparency & Disclosures: "AI system users should disclose the purpose, capabilities, limitations, and applicable legal context-but not sensitive IP." AI Governance in Practice Report2025(Transparency Section) states: "Disclosure requirements balance public understanding with the need to protect proprietary business interests. Proprietary training methods are not expected to be disclosed." Thus, while it's best practice to disclose theintended purpose, legal compliance, and system limitations, internal proprietary techniquesare usually excluded.
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