A company must keep customer data within a specific jurisdiction. Its data is stored in a compliant region, and a generative feature calls a foundation model hosted elsewhere. What is the position?

• AResidency is satisfied, because the system of record remains in the permitted region.
• BResidency is breached, because inference sends the data outside the permitted region.
• CResidency is satisfied provided the response is not stored outside the region.
• DResidency is satisfied because inference is transient rather than storage.