Theprimary concernwhen auditing an AI-powered chatbot is ensuring thesafeguarding of personal datato comply with privacy regulations such asGDPR, CCPA, and ISO 27701. AI chatbots process customer inquiries, often handling sensitive personal data.

Safeguarding of Personal Data (Correct Answer – A)

Ensures compliance with data protection laws.

Reduces the risk of unauthorized access or data leakage.

Example:An AI chatbot collecting customer financial information must follow encryption and access control policies.

Compliance with Industry Standards (Incorrect – B)

Important, but protecting customer data takes priority over general compliance.

Speed and Accuracy of Chatbot Responses (Incorrect – C)

A performance metric, but not a primary audit focus.

AI’s Ability to Handle Multiple Queries (Incorrect – D)

Efficiency metric, but does not address security risks.