NCA-GENL Question 216
Select 3A company is training a large language model (LLM) using customer data. While designing the data pipeline, the team wants to ensure compliance with data privacy regulations and maintain customer trust. Which of the following practices best balance data privacy and the importance of data consent?
- A
Obtain explicit consent from customers before using their data for training the LLM.
- B
Anonymize all customer data before feeding it into the training process.
- C
Use publicly available datasets to avoid the need for customer data consent.
- D
Provide customers with clear, accessible options to opt out of data collection.
- E
Store raw customer data indefinitely to ensure future retraining capabilities.
Show answer and explanation
Correct answers: A, B, D
Explanation
Balancing data privacy and consent requires implementing practices that prioritize customer trust, ethical data usage, and compliance with regulations. Obtaining explicit consent, anonymizing data, and offering opt-out options are key strategies to achieve this balance while mitigating risks. However, practices like storing data indefinitely or overly relying on public datasets may undermine privacy and trust.
- A. Correct.
Obtaining explicit consent ensures that customers are fully aware of how their data will be used, aligning with ethical and regulatory standards.
- B. Correct.
Anonymizing data helps mitigate privacy risks by removing identifiable information, reducing the likelihood of exposing sensitive customer data.
- C. Incorrect.
While publicly available datasets may bypass the need for consent, they often lack domain-specific insights from customer data, making this an inadequate practice to balance privacy and consent.
- D. Correct.
Providing opt-out options empowers customers to make decisions about their data, fostering trust and compliance with privacy regulations.
- E. Incorrect.
Storing raw customer data indefinitely increases the risk of data breaches and violates many data privacy regulations, such as GDPR or CCPA, which mandate data minimization.