Has Advanced Analytics and AI-Enabled Tools Rendered GDPR Useless?

Has Advanced Analytics and AI-Enabled Tools Rendered GDPR Useless?

The European Union (EU) passed the General Data Protection Regulation (EU-GDPR), which was deemed revolutionary in strengthening individuals’ fundamental rights in the digital age. It also helped put in place privacy rules associated with the processing of personal data, and privacy laws while using data for analytic purposes. Some see this as an opportunity to solve other challenges when performing analytics on customer data as organizations investigate how to use innovative solutions to protect individuals’ most sensitive data. In this blog, you will learn more about the GDPR AI effect and how the scope of data protection regulation is widened by the use of artificial intelligence to supplant decision-making.

GDPR “Right to Explanation” and Transparency

The discussions of algorithmic transparency, accountability, and explainability of AI systems take place outside of the confines of GDPR. Artificial intelligence’s fair and ethical use can be significantly aided by ensuring data quality, removing algorithmic biases, and implementing enhanced methods for code interpretability.  Aside from intellectual property issues around the source code, would explaining the algorithm to the individual be useful?  At Payoda we are fairly certain that it would be more meaningful to provide the input data used to draw out an automated decision rather than producing the information related to the algorithm used in the decision-making process.

On the other hand, GDPR’s “right to explanation” is one of the most frequently debated topics in GDPR and AI discussions. Considering Article 22 of GDPR’s regulations, “meaningful information about the logic involved” should be understood if the algorithmic method is adopted, rather than an explanation of the reasoning behind an automated decision. For instance, if a loan application is denied, Article 22 may call for the processor to reveal details regarding the input data about the person and the general parameters established in the algorithm that allowed the automated decision. However, Article 22 would not call for a justification of the source code or the reasoning behind that particular choice.

GDPR’s New Norms for AI and Machine Learning

The AI community must prepare for the new EU consumer rights directive that governs areas essential to AI use and development. Examples include provisions mandating that openness and access to data be incorporated into algorithms used in connection with a ranking. This is part of a recently proposed law on promoting fairness and transparency for business users of online intermediation services. The EU consumer rights directive is another example. This requires that agreements made in online marketplaces disclose the key factors and underlying algorithms used to rank the offerings displayed to customers conducting online searches.

GDPR and AI Deepening Bond

The handling of personal data in an AI setting is sometimes restricted by the GDPR or, at the very least, made more complicated. But as we move closer to a wholly regulated data market, it might eventually assist in building the confidence required for consumer and governmental acceptance of AI. As more AI and data-specific legislation emerge in Europe and worldwide, their relationship will only develop and strengthen.

Payoda and GDPR Compliance

Payoda Technology is a provider of award-winning AI/ML engineers to some of the world’s most valuable enterprises from global brands to innovative startups.  Let Payoda’s GDPR experts help your organization navigate risks associated with compliance by giving you the tools to execute your data initiatives seamlessly.

To learn more about GDPR, data privacy, and protection, please visit us at Payoda Technology to schedule a consultation with a data privacy expert to determine the best option for your business.

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