AIGP domain - 21% of the exam

Understanding the foundations of AI governance

Understanding the foundations of AI governance is 21% of the AI Governance Professional (AIGP) (AIGP) exam. These are the objectives it covers, each with practice questions and worked explanations.

Objectives in this domain

Sample question from this domain

Free sampleUnderstanding the foundations of AI governanceeasy

A facilities team builds a heating controller whose behaviour is fixed entirely by rules a programmer wrote, such as switching the boiler on whenever a sensor reads below 18 degrees. A governance lead is asked why this controller does not meet the widely used OECD and EU AI Act definition of an AI system. Which characteristic, present in that definition, does the controller lack?

  • AIt infers from the inputs it receives how to generate outputs such as predictions or decisions, rather than only executing rules a human wrote. Correct
  • BIt runs continuously rather than only when an operator manually triggers each individual action through the interface.
  • CIt connects to the internet so that it can transmit its sensor readings to a remote server for storage.
  • DIt stores a historical log of past temperature readings that an engineer can later download and inspect.
An AI system, under the OECD and EU AI Act definition, infers outputs from inputs rather than only executing human-written rules. The shared OECD and EU AI Act definition hinges on inference: the system derives outputs such as predictions, recommendations or decisions from the input it receives, which distinguishes it from deterministic software whose every response is hand-coded by a programmer.

Why A is correct: The OECD and EU AI Act definition centres on a system that infers from input how to produce outputs like predictions, content, recommendations or decisions, which a fixed rules-only controller does not do.

Why B is wrong: Running continuously is tempting because people associate AI with always-on services, but autonomous scheduling is not what the definition turns on, and many simple automated devices run continuously without being AI.

Why C is wrong: Network connectivity sounds modern and AI-like, yet the definition says nothing about connectivity, and an offline model is still AI while a connected thermostat is not.

Why D is wrong: Keeping a data log feels relevant because AI uses data, but merely recording readings is passive storage and is not the inference of outputs that the definition requires.

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