A hospital is developing an AI system to assist doctors in diagnosing diseases based on...

Data residency is the principle and practice of ensuring that data remains within a specific geographic location or jurisdiction, often to comply with local regulations and privacy laws (such as HIPAA, GDPR, or national healthcare laws). Data residency policies prevent sensitive data (such as patient records) from being transferred or accessed outside the designated country, thus protecting privacy and ensuring regulatory compliance.

A is correct:

“Data residency refers to where data is stored geographically, and often organizations need to ensure that certain data does not leave a particular country or region to comply with legal or regulatory requirements.”

(Reference: AWS Data Residency Whitepaper, AWS Responsible AI & Data Privacy)

B (data quality) refers to the accuracy and reliability of data, not its location.

C (data discoverability) is about being able to find and access data, not restricting its movement.

D (data enrichment) is about enhancing data with additional information.

“Maintaining data residency is critical in healthcare and regulated industries to ensure data does not leave the prescribed jurisdiction.”

(Reference: AWS Data Residency)