Contractors, how will you stop Artificial Intelligence clashing with the GDPR?

It’s a known fact that Artificial Intelligence (AI) is growing exponentially in the world of IT and contracting. Therefore, addressing the possible conflicts between AI and the General Data Protection Regulation (GDPR) is crucial, writes Maryam Rana of commercial law firm Gerrish Legal. 

This problem, articulated here by Bobby Armstrong of technology courses provider Firebrand Training, emphasises the need for contractors and organisations to manage the complexity of matching AI  breakthroughs with strict, uncompromising and penalty-backed data protection regulations.  

Understanding GDPR compliance and its four key principles

The GDPR, which entered into force in May 2016 and has been applied since May 2018, establishes strict/rigid data protection and privacy regulations in the European Union.

The GDPR’s key principles are:

1. data minimisation,
2. purpose limitation,
3. transparency, and
4. accountability.

These concepts have a direct influence on AI applications, particularly those requiring automated decision-making, data processing, and data transfers.  

For example, Article 22 of the GDPR outright prohibits automated decision-making, thus, having a major impact unless certain requirements are satisfied, such as explicit consent of a contract.

Furthermore, the GDPR requires the appointment of a Data Protection Officer (DPO) in organisations where data processing entails large-scale monitoring or sensitive data, as is frequently the case with AI applications.

Balancing AI use with GDPR compliance  

To effectively balance AI usage with GDPR compliance, both IT contractors and organisations must take proactive measures.  

Conducting Data Protection Impact Assessments (DPIAs) will be of use, as these will be able to identify and manage risks connected with data processing operations, particularly when using emerging technologies like AI.

Contractors should undertake DPIAs before installing AI systems to evaluate potential privacy concerns.  

Privacy by design, documentation, evaluation

To ensure privacy, AI systems should be designed and operated with privacy principles in mind. This method, known as ‘privacy by design,’ guarantees that data protection is considered from the start and continues throughout the AI system’s lifecycle. Organisations should adopt privacy-enhancing technology, and policies, which protect personal information.

Keep in mind, the GDPR requires complete records of data-processing activities. So contractors and organisations should document the purposes of data-processing, data retention periods, and measures taken to protect data.

This paperwork is critical in establishing compliance during audits or inquiries – such as if the Information Commissioner’s Office should get in touch.

Furthermore, organisations should evaluate AI providers to guarantee they meet the requirements of the GDPR. This involves evaluating a supplier’s data protection policies, security procedures, and compliance certifications.

What’s in your AI supplier data protection agreement?

Contracts with AI suppliers should contain data protection agreements and mechanisms for periodic audits. It is crucial to develop and enforce strong policies and processes for using Artificial Intelligence.

These policies should ensure coverage of data protection, risk management, and accountability. Contractors should be familiar with these policies and ensure they adhere to them in their AI-related projects.  

Related, continuous education and training are critical for ensuring that all staff – even external personnel - understand their roles and responsibilities in GDPR compliance.

Could you tell a client without blushing you’re on top of the AI-GDPR mismatch?

Consultants and contractors should therefore take steps to stay abreast of developments and innovations regarding data protection and AI, so they can assert with honesty and confidence that they are effectively navigating the evolving regulatory landscape.

Data protection contractors play an important role in assisting organisations to achieve compliance while embracing AI.

But as the need for AI knowledge develops, contractors must become more proficient in both AI technology and GDPR. This combined competence provides considerable employment potential, but it also poses obstacles, since contractors must keep up with rapid technical improvements and changing legal frameworks.  

To that extent, the integration of AI into the technology contracting world brings both opportunities and challenges. Balancing AI usage with GDPR compliance is and will continue to be critical for maintaining data privacy and avoiding legal wrangles.

How to use AI but not fall foul of the GDPR; in a nutshell…

As advised, contractors and organisations may effectively negotiate these complications by performing DPIAs, integrating privacy by design, vetting vendors and adhering to strict policies. Continuous education and monitoring the legal landscape will similarly be essential for ensuring compliance and harnessing the full potential of AI.