CyberCertPrepAI Security FundamentalsAI Governance, Risk & FrameworksEASYFree question
A procurement lead is evaluating an AI vendor's credit-scoring product for use in consumer lending decisions. Under the EU AI Act, which statement about this use case is correct?
- A.B. Credit scoring AI for consumers is listed in Annex III as a high-risk AI system, requiring conformity assessment
- B.A. Credit scoring AI is unregulated at the EU level and only subject to existing financial services law
- C.C. Credit scoring AI is a prohibited practice under Article 5 of the EU AI Act
- D.D. Credit scoring AI is limited-risk and only requires a disclosure notice to borrowers
Why A is correct
EU AI Act Annex III explicitly lists AI used for creditworthiness assessment and credit scoring of natural persons as a high-risk application under the 'Access to essential private services' category. High-risk AI systems require conformity assessment, technical documentation, human oversight mechanisms, and in many cases registration in the EU AI database. It is not prohibited, and it is not limited-risk.
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