The vendor acts solely for the company’s documented | AIGP
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The vendor acts solely for the company’s documented: Which prior assumption no longer holds?

AIGP Understanding How to Govern AI Deployment and Use Hard

Vendor training creates an additional purpose, undermining the assumption that processing occurs solely for the company’s extraction activity.

The question

A financial-services company uses a vendor to extract fields from customer documents. The company determines extraction purposes, while the vendor contract permits retaining documents to train the vendor’s general model. Under the GDPR in the European Union, the company must reassess roles and data use before approving the clause. Which prior assumption no longer holds?

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  1. Contract language can describe permitted data handling.
    Contract language can describe handling, but the proposed clause reveals that actual purposes must be reassessed under the GDPR facts.
  2. The documents remain relevant to financial administration.
    Relevance to administration may remain unchanged, while the new retention and training purpose changes the processing relationship.
  3. The company determines the extraction purpose.
    The company may still determine the extraction purpose, but that does not eliminate the vendor’s separate purpose for retained data.
  4. The vendor acts solely for the company’s documented extraction purpose. ✓
    General model training is an additional vendor purpose, so the assumption of processing solely for the company’s extraction purpose no longer holds.
The trap
When a supplier reuses data for its own objective, examine whether the original processing-purpose assumption still fits.

How to remember it

Vendor training creates an additional purpose, undermining the assumption that processing occurs solely for the company’s extraction activity.

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Part of the Certsqill AIGP question bank · Understanding How to Govern AI Deployment and Use · Every answer, right and wrong, comes with its own explanation.