AI and Personal Data Protection – How to Meet Legal Regulations in Practice?
The development of artificial intelligence (AI) technology is changing the way companies, public solutions, and entire economic sectors operate. Algorithms icreasingly support decision-making processes, recruitment, customer service, and user bahavior analysis. Although AI brings enormous benefits in terms of efficiency and automation, it also raises serious questions about the security and privacy of personal data.
How to meet legal regulations in practice?
Models learning on large datasets can potentially reveal information that enables the identification of individuals, even if this data was previously anonymized. Furthermore, automated decision-making systems can lead to discrimination or erroneous assessments, which requires special attention and the application of appropriate control mechanisms. This makes personal data protecion in the context of AI one of the key topics in modern cybersecurity and legal compliance.
GDPR and the AI Act as regulatory pillars
Data controllers are obliged to apply GDPR principles – primarily to minimize the scope of processed data, ensure the trasparency of the process, and respect the rights of data subjects.
The legal basis of personal data protection in the European Union remains the General Data Protection Regulation (GDPR). In August 2024, a new EU legal act joined this framewok – the AI Act, introducing regulations regarding artificial intelligence systems. Both acts are intended to complement each other, but their integration and practical application still require additional clarifications, which are provided, among others, by the positions of the Personal Data Protection Office (UODO – Polish DPA) and the European Data Protection Board (EDPB).
Key guidelines of the EDPB and UODO
In December 2024, the EDPB published an opinion regarding the use of personal data in the development and application of AI models. This authority emphasized that data anonymity is a relative concept – event anonymized data can be susceptible to re-identification, especially when using advanced artificial intelligence techniques. Therefore, the processing of such data should be preceded by a through risk assessment.
The EDPB also pointed out that the controller’s legitimate interest (Art. 6(1)(f) of the GDPR) can constitute a legal basis for data processing for AI purposes, but this requires balancing the company’s interests with the rights of the data subjects. It is also necessary to apply data protection measures, ensure transparency, and enable the exercise of individuals’ rights.
The Polish regulator – UODO, points out that the implementation of AI systems must go hand in hand with the full protection of individuals’ rights, including ensuring the transparency of decision- making processes and the ability to appeal automaticlly made decisions. The regulator also emphasizes the necessity of conducting a Data Protection Impact Assessment (DPIA) in the case of high-risk systems.
How to ensure AI legal compliance
In light of the EDPB and UODO guidelines, data controllers should take actions to minimize the risks associated with the use of AI. Comprehensive risk management procedures are essential in this regard, including:
Risk analysis and DPIA – identifying potential threats resulting form the use of AI.
Data minimization – limiting the scope of data to the absolute minimum necessary.
Process transparency – informing users about the operating principles of AI systems.
Verification of data sources – ensuring that the data used to train models was acquired legally.
Technical and organizational security – applying encryption, acess control, audit, and penetration tests.
Staff training and awareness – educating teams responsible for the implementiation and oversight of AI systems.
The balance between innovation and privacy protection
Implementing AI requires maintaining a balance between innovation and responsibility. Enterprises must be aware that every data-driven decision poses a potential risk of privacy violation.
In practise, this means that artifical intelligence does not exempt one from the obligations arising from the GDPR – on the contrary, it requires even greater attention and transparency.
Companies that manage to combine security, compliance, and ethics will gain not onlt a competetive advantage but also the trust of customers and regulators.
FAQ - Frequently Asked Questions
Does the GDPR always apply to the data used by AI?
Yes, if the identification of a natural person is possible – even indirectly. Even pseudonymized or anonymized data may be subject to GDPR regulations if it can be linked to a specific person.
Does the AI Act replace the GDPR?
No. The AI Act does not replace the GDPR – both legal acts complement each other. The AI Act regulates issues of liability and security of artificial intelligence systems, while the GDPR protects the personal data of natural persons.
What data can be used to train AI models?
Only data obtained legally, in accordance with the principles of data minimization, purpose limitation, and transparency. Using data without consent or from illegal sources is strictly prohibited.
What are the penalties for a company violating data protection rules when using AI?
Administrative fines under the GDPR can reach up to 20 million euros or 4% of the company’s total worldwide annual turnover. Additionally, the AI Act provides its own penalties for violations related to the security of AI systems.
How can companies mitigate the risks associated with AI?
By implementing a DPIA (Data Protection Impact Assessment), ensuring model auditability, maintaining records of processing activities (RoPA), applying encryption, and monitoring data sources.
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