Start-up company MagicAl is developing an AI system that will be part of a medical...

Under Article 9 of the GDPR, processing of special category data (e.g., ethnicity, health data) is prohibited unless an exception applies​.

Why is C the correct answer?

AI-based medical devices fall under "preventive or occupational medicine" as per GDPR Article 9(2)(h)​.

The AI system is used to detect skin cancer, a form of preventive medicine, making this the appropriate basis.

Why are other answers incorrect?

A (Scientific research or statistical purposes) → While scientific research can be a legal basis, it requires additional safeguards such as anonymization, which may not be feasible in this case​.

B (Substantial public interest) → While public health is important, this processing is specific to medical diagnosis, making Article 9(2)(h) more appropriate​.

D (Defense of legal claims) → Legal claims are not relevant here, as the processing is for bias mitigation in AI training​.