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Exam CIPP-E topic 1 question 232 discussion

Actual exam question from IAPP's CIPP-E
Question #: 232
Topic #: 1
[All CIPP-E Questions]

Sanctions for non-compliance with the EU Artificial Intelligence Act (AI Act) could result in a maximum fine of?

  • A. The higher of up to 10 million Euro or up to 2% of the entity's total worldwide turnover for the preceding financial year.
  • B. The higher of up to 40 million Euro or up to 8% of the entity's total worldwide turnover for the preceding financial year.
  • C. The higher of up to 20 million Euro or up to 4% of the entity's total worldwide turnover for the preceding financial year.
  • D. The higher of up to 30 million Euro or up to 6% of the entity's total worldwide turnover for the preceding financial year.
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Suggested Answer: C 🗳️

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a4007d1
1 week, 4 days ago
The correct answer is: **B. The higher of up to 40 million Euro or up to 8% of the entity's total worldwide turnover for the preceding financial year.** ### Explanation: Under the EU Artificial Intelligence Act, the maximum fine for non-compliance is set at the higher of up to €40 million or up to 8% of the entity's total worldwide annual turnover for the preceding financial year. This high level of fine is intended to enforce stringent compliance with AI regulations, especially for cases involving high-risk AI systems that could impact fundamental rights or safety.
upvoted 1 times
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Ssourav
3 months, 2 weeks ago
Outdated , Non-compliance with certain AI practices can result in fines up to 35 million EUR or 7% of a company's annual turnover. Other violations can result in fines up to 15 million EUR or 3% of a company's annual turnover
upvoted 1 times
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58ad832
6 months, 3 weeks ago
This question is outdated. The fines in the new Act is 35 million EUR or 7% of worldwide revenue whichever is higher.
upvoted 1 times
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Grzesztof
7 months, 1 week ago
Selected Answer: D
The previous approach suggests that D is the right answer, but as per 2024 I think that these answers are pretty much outdated.
upvoted 2 times
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