Which risk category involves threats arising from fragmented AI regulations across regions?

• A. Data Poisoning
• B. AI Regulatory Risk
• C. Insider Threats
• D. Unbounded Consumption

Answer: (B)

Regulatory fragmentation across regions drives AI Regulatory Risk. When AI rules differ from one jurisdiction to another, organizations must navigate multiple, sometimes conflicting, requirements around data privacy, model governance, accountability, and safety. This creates legal uncertainty, increases compliance overhead, and can lead to penalties or restrictions if any region’s rules are not properly followed. It also complicates cross-border data flows and deployment strategies. So, the risk category that specifically covers threats arising from uneven AI regulations across regions is AI Regulatory Risk. Data poisoning targets manipulated data; insider threats involve internal misuse; unbounded consumption concerns uncontrolled use—none of these center on regulatory differences.