A lender pilots Claude to produce recommended credit-limit decisions for small-business applicants in the EU, which staff currently approve in bulk. The product owner wants to remove staff approval to meet a throughput target. Which response best balances compliance and the business goal?

Answer: C — Automate clear cases with documented basis and a contest route, and give staff real authority to review the rest

Decisions with significant effects on individuals call for safeguards: meaningful human intervention, an explanation grounded in verifiable inputs, and a way to contest. Involve privacy counsel on whether full automation is permissible for each case. (a) relies on generated reasoning as the explanation and drops human review entirely. (b) treats rubber-stamping as meaningful oversight. (d) overstates the regulation.