• Pascal's Chatbot Q&As
  • Posts
  • How feasible is it for AI to comply with General Data Protection Regulation anytime soon?

How feasible is it for AI to comply with General Data Protection Regulation anytime soon?

Bing Chat's advice for AI Startups: start taking data protection seriously. GDPR is not only a legal requirement but also a competitive advantage and an ethical duty

Question 1 of 5 for AI Services: Considering that AI in its current state and being present in Web, Mobile and Desktop Applications, Microsoft Services, Office and Windows 11, Chatbots, Virtual Assistants, Educational Platforms, Gaming, Research, Content Creation Tools, while allowing for downloading and uploading of content and capturing and retaining Personal and Professional Information, Communication Data, Work Product, Behavioral Data, Device Information, Usage Data, Company Information, Sensitive Information, Biometric Data and Location Data it would seem to me that it's going to be complicated to allow users to request or pull info about themselves or to communicate to those users where all their stuff is residing, how and how long it is being retained and to whom their info is being disseminated and for what purpose. I mean, AI plugin stores are likely to be a free-for-all, only allowing for reactive action against non-compliant activities. As such, how realistic and feasible is it going to be for AI services to comply with GDPR rules anytime soon? Which GDPR provisions will be most challenging for AI services?

ChatGPT-4’s answer:Complying with the General Data Protection Regulation (GDPR) is indeed a complex task for AI services, especially considering the vast amount of data they handle and the diverse contexts in which they operate. However, it is not only feasible but also mandatory for any AI service operating within the European Union or dealing with data of EU citizens.

Here are some of the key challenges:

  1. Data Minimization and Purpose Limitation: AI systems often require large amounts of data for training and operation. Ensuring that only the necessary data is collected for a specific purpose, and not used beyond that purpose, can be challenging.

  2. Right to Explanation: Under GDPR, individuals have the right to understand the logic, significance, and consequences of automated decisions that affect them. This can be difficult with complex AI models, like deep learning, which are often described as "black boxes" due to their lack of interpretability.

  3. Data Accuracy: AI systems need accurate data to function effectively. However, GDPR gives individuals the right to correct inaccurate personal data. Balancing these needs can be challenging.

  4. Data Portability: GDPR gives individuals the right to receive their personal data in a structured, commonly used, and machine-readable format. Implementing this in AI systems can be technically challenging.

  5. Right to Erasure (or 'Right to be Forgotten'): Implementing this right can be complex in AI systems, especially those that have used the data for training.

  6. Consent Management: Obtaining and managing user consent for data collection and processing can be complex, especially in systems that interact with users through multiple touchpoints.

  7. Data Protection by Design and by Default: This requires integrating data protection into the design of AI systems. It can be challenging to retrofit existing systems to comply with this principle.

  8. Transparency: Providing clear and understandable information about data processing can be difficult, especially when complex AI systems are involved.

To overcome these challenges, companies will need to invest in technical and organizational measures, such as privacy-enhancing technologies, data protection impact assessments, and strong governance structures. They may also need to collaborate with regulators, industry groups, and civil society to develop standards and best practices for AI and data protection.

Google Bard’s answer:The General Data Protection Regulation (GDPR) is a regulation in EU law on data protection and privacy for all individuals within the European Union (EU) and the European Economic Area (EEA). The GDPR aims primarily to give control back to citizens and residents over their personal data and to simplify the regulatory environment for international business by unifying the regulation within the EU. It does this by replacing the data protection directive (Directive 95/46/EC) of 1995. The regulation has been in effect since May 25, 2018.

AI services are likely to face a number of challenges in complying with the GDPR. Some of the most challenging provisions include:

  • Transparency: The GDPR requires organizations to be transparent about how they collect, use, and share personal data. This can be difficult for AI services, which often use complex algorithms and data sets that are not easily explained to users.

  • Consent: The GDPR requires organizations to obtain consent from users before collecting or processing their personal data. This can be difficult for AI services, which often collect data passively, without the user's knowledge or consent.

  • Data minimization: The GDPR requires organizations to only collect the personal data that is necessary for the specific purpose for which it is being collected. This can be difficult for AI services, which often collect large amounts of data in order to train their algorithms.

  • Data security: The GDPR requires organizations to take all reasonable steps to protect personal data from unauthorized access, use, disclosure, alteration, or destruction. This can be difficult for AI services, which often store data in the cloud or on other shared platforms.

Despite these challenges, it is possible for AI services to comply with the GDPR. By taking steps to be transparent, obtain consent, minimize data collection, and protect data security, AI services can ensure that they are meeting their obligations under the GDPR.

In addition to the above, some other GDPR provisions that may be challenging for AI services include:

  • Right of access: Individuals have the right to access their personal data that is held by an organization. This can be difficult for AI services, which may not have a clear understanding of what personal data they hold about each individual.

  • Right to rectification: Individuals have the right to have their personal data rectified if it is inaccurate or incomplete. This can be difficult for AI services, which may not have the ability to easily correct personal data.

  • Right to erasure: Individuals have the right to have their personal data erased in certain circumstances. This can be difficult for AI services, which may rely on personal data to provide their services.

  • Right to object: Individuals have the right to object to the processing of their personal data in certain circumstances. This can be difficult for AI services, which may need to process personal data in order to provide their services.

The GDPR is a complex regulation, and it is important for AI services to seek legal advice to ensure that they are complying with its requirements.

Bing Chat’s answer:That’s a very interesting and complex question. The General Data Protection Regulation (EU) 2016/679 (GDPR) does not refer to AI specifically, but rather regulates the processing of personal data regardless of the technology used1. As a consequence, any technology that is designed to process personal data, including AI, is fully captured by the regime1.

Some of the main challenges for AI services to comply with GDPR rules are:

  • The risk-based approach that requires the data controller to consider the nature, scope, context and purposes of processing, as well as the risks for data subjects’ rights and freedoms2. This may be difficult for AI systems that are not transparent or predictable in their decision-making process.

  • The accountability principle that requires the data controller to demonstrate compliance with the GDPR and to implement appropriate technical and organizational measures2. This may require AI systems to provide explanations, counterfactuals or other measures to show how they reached a certain outcome or why they are fair and lawful2.

  • The data subject rights that grant individuals the right to access, rectify, erase, restrict, object or port their personal data processed by AI systems3. This may pose challenges for AI systems that rely on large and complex datasets, or that use personal data for purposes beyond the original consent or legitimate interest3.

  • The specific provisions that apply to certain types of processing, such as automated decision-making, profiling, biometric data, sensitive data or cross-border transfers4. These may require AI systems to obtain explicit consent, conduct impact assessments, implement safeguards or obtain authorizations from supervisory authorities4.

In addition to the GDPR, the EU has also proposed a new regulation on Artificial Intelligence (AI Act) that aims to harmonize the rules on AI across the single market and ensure that AI systems are lawful, safe and trustworthy2. The AI Act introduces a risk-based classification of AI systems into four categories: unacceptable, high-risk, limited-risk and minimal-risk2. Depending on the category, different obligations and prohibitions apply to the providers and users of AI systems2. The AI Act also establishes a governance system at both the EU and national levels, with designated supervisory authorities and a European Artificial Intelligence Board2.

The interplay between the GDPR and the AI Act is not always clear or consistent. For example, under the GDPR, the bulk of obligations, liability and accountability for how personal data are processed are assigned to ‘controllers’. It is the AI Act’s ‘users’ who will rather be the ‘controllers’ under the GDPR in the deployment phase of AI systems5. Another example is the definition of ‘high-risk’ AI systems under the AI Act, which does not align with the notion of ‘high-risk’ processing under the GDPR5. Therefore, it is likely that some challenges and uncertainties will arise in applying both regulations to AI services.

I hope this helps you understand some of the main issues and implications of GDPR rules for AI services. If you want to learn more about this topic, you can check out some of these sources:

  • 1 Artificial Intelligence and Data Protection How the GDPR Regulates AI

  • 2 AI & the GDPR: Regulating the minds of machines - Linklaters

  • 3 Artificial Intelligence and the GDPR: a guide - data-en-maatschappij.ai

  • 4 Dentons - AI and GDPR: A tight affair

  • 5 GDPR and the AI Act interplay: Lessons from FPF’s ADM Case-Law Report

Question 2 of 5 for AI Services: What's your view regarding the statement that it is highly unlikely that AI will be compliant with GDPR in the next 5-10 years due to the speed with which the technology and its many derivates are being developed and the complexity of both the GDPR itself and the global AI infrastructure?

ChatGPT-4’s answer: As an AI, I don't have personal views or opinions. However, I can provide an analysis based on the information available up to my last update in September 2021.

The statement you mentioned reflects a common concern among experts and industry observers. The rapid pace of AI development, combined with the complexity of GDPR and the global AI infrastructure, does present significant challenges for achieving full compliance. However, it's important to note a few key points:

  1. Regulatory Focus: There is increasing regulatory focus on AI and data protection worldwide. This is likely to drive faster adoption of GDPR-compliant practices in AI development.

  2. Technological Advances: Technological solutions are being developed to address some of the challenges of GDPR compliance in AI, such as differential privacy for data anonymization, and explainable AI for transparency.

  3. Organizational Commitment: Many organizations are investing heavily in data protection and privacy, recognizing their importance for customer trust and legal compliance. This includes hiring data protection officers, conducting data protection impact assessments, and integrating data protection into the design of AI systems.

  4. Collaborative Efforts: There are ongoing efforts by industry groups, regulators, and civil society to develop standards and best practices for AI and data protection. These collaborative efforts can help accelerate the path to GDPR compliance.

In conclusion, while there are significant challenges to achieving full GDPR compliance in AI, it's not accurate to say it's "highly unlikely" in the next 5-10 years. The timeline will depend on a variety of factors, including technological advances, regulatory pressures, and the commitment of organizations to data protection.

Google Bard’s answer:I think it is unlikely that AI will be fully compliant with GDPR in the next 5-10 years. The GDPR is a complex regulation, and it is difficult for AI services to keep up with the speed at which the technology is developing. Additionally, the global AI infrastructure is complex and fragmented, which makes it difficult to ensure compliance.

However, I do believe that AI services will make progress in complying with GDPR in the next 5-10 years. There are a number of organizations working to develop tools and resources to help AI services comply with GDPR. Additionally, the GDPR is a living document, and it is likely that the European Commission will continue to clarify and update the regulation in the coming years.

Here are some of the challenges that AI services face in complying with GDPR:

  • Transparency: AI services often use complex algorithms and data sets that are not easily explained to users. This makes it difficult for AI services to be transparent about how they collect, use, and share personal data.

  • Consent: AI services often collect data passively, without the user's knowledge or consent. This makes it difficult for AI services to obtain consent from users before collecting or processing their personal data.

  • Data minimization: AI services often collect large amounts of data in order to train their algorithms. This can make it difficult for AI services to only collect the personal data that is necessary for the specific purpose for which it is being collected.

  • Data security: AI services often store data in the cloud or on other shared platforms. This makes it difficult for AI services to take all reasonable steps to protect personal data from unauthorized access, use, disclosure, alteration, or destruction.

Despite these challenges, there are a number of things that AI services can do to comply with GDPR:

  • Be transparent: AI services should provide users with clear and concise information about how they collect, use, and share personal data. This information should be easy to understand and should be accessible to users in a variety of formats.

  • Obtain consent: AI services should obtain consent from users before collecting or processing their personal data. Consent should be freely given, specific, informed, and unambiguous.

  • Minimize data collection: AI services should only collect the personal data that is necessary for the specific purpose for which it is being collected.

  • Protect data security: AI services should take all reasonable steps to protect personal data from unauthorized access, use, disclosure, alteration, or destruction. This includes using appropriate security measures, such as encryption and access controls.

By taking these steps, AI services can help to ensure that they are complying with GDPR and protecting the privacy of their users.

Bing Chat’s answer:Thank you for your follow-up question. I think it is a matter of perspective and opinion whether AI will be compliant with GDPR in the next 5-10 years. Some might argue that AI is already compliant with GDPR, or at least can be made compliant with some adjustments and safeguards. Others might contend that AI poses inherent challenges and risks for GDPR compliance that are not easy to overcome or mitigate.

As I mentioned in my previous answer, there are many legal and human rights issues related to AI, such as purpose limitation, fairness and discrimination, data minimization, transparency, automated decision-making, profiling, biometric data, sensitive data and cross-border transfers1234. These issues may arise due to the nature of AI systems, such as their complexity, opacity, unpredictability, adaptability and scalability5. Moreover, these issues may vary depending on the type, context and purpose of AI systems, such as whether they are unacceptable, high-risk, limited-risk or minimal-risk2.

Therefore, it is not a simple or straightforward task to ensure that AI services are compliant with GDPR rules. It requires a combination of legal and technical measures, such as obtaining consent, conducting impact assessments, implementing safeguards, providing explanations, ensuring accountability and adopting data protection by design and by default1234. It also requires a governance system that involves coordination and cooperation among different actors and stakeholders, such as providers, users, regulators, supervisory authorities and civil society25.

However, this does not mean that AI compliance with GDPR is impossible or unrealistic. On the contrary, there are many initiatives and efforts underway to address the challenges and opportunities of AI for data protection and human rights. For example:

  • The EU has proposed the AI Act that aims to harmonize the rules on AI across the single market and ensure that AI systems are lawful, safe and trustworthy2.

  • The European Data Protection Board (EDPB) and the European Data Protection Supervisor (EDPS) have issued joint opinions and guidelines on various aspects of AI and GDPR, such as automated decision-making, facial recognition and data governance6.

  • The Council of Europe has adopted a Recommendation on the human rights impacts of algorithmic systems that provides a set of principles and measures for member states to ensure respect for human rights in the design, development and use of algorithmic systems.

  • The OECD has developed a set of Principles on Artificial Intelligence that promote a human-centric approach to trustworthy AI that respects human rights and democratic values.

  • The IEEE has launched a series of Standards Projects that address ethical aspects of AI systems, such as transparency, accountability, bias mitigation and privacy.

These are just some examples of the ongoing work and progress in the field of AI and GDPR. Of course, there are still many challenges and uncertainties ahead. But there are also many opportunities and benefits for individuals and society. Therefore, I think it is important to keep an open mind and a constructive attitude towards AI compliance with GDPR. In this context, a human might say that it is not a matter of if but how AI will be compliant with GDPR in the next 5-10 years.

I hope this gives you some food for thought. If you want to explore more about this topic, you can check out some of these sources:

  • 1 GDPR Compliance challenges of AI projects and how to solve them

  • 2 The impact of the General Data Protection Regulation (GDPR) on artificial intelligence | Think Tank | European Parliament

  • 3 Legal and human rights issues of AI: Gaps, challenges and vulnerabilities - ScienceDirect

  • 4 Making AI GDPR Compliant - ISACA

  • 5 AI Compliance – Challenges of Bridging Data Science and Law

  • 6 EDPB-EDPS Joint Opinion 5/2021 on the proposal for a Regulation laying down harmonised rules on artificial intelligence (Artificial Intelligence Act) | European Data Protection Board (europa.eu)

  • Recommendation CM/Rec(2020)1 of the Committee of Ministers to member States on the human rights impacts of algorithmic systems (coe.int)

  • OECD Principles on Artificial Intelligence - OECD

  • IEEE P7000™—Model Process for Addressing Ethical Concerns During System Design - IEEE SA

Question 3 of 5 for AI Services: If indeed AI services are not fully compliant with GDPR in the next 5-10 years, what are the potential negative consequences for the AI developers and their businesses?

ChatGPT-4’s answer:Non-compliance with GDPR can have several serious consequences for AI developers and their businesses:

  1. Financial Penalties: One of the most immediate consequences of GDPR non-compliance is the potential for hefty fines. Under GDPR, organizations can be fined up to €20 million or 4% of their annual global turnover, whichever is higher, for serious infringements.

  2. Reputational Damage: Non-compliance with GDPR can lead to significant reputational harm. Customers are increasingly concerned about their data privacy, and breaches or non-compliance can lead to loss of trust and damage to the brand.

  3. Loss of Business: If a company is found to be non-compliant, it may lose the ability to process personal data, which could severely impact its operations. Additionally, customers or partners may choose to stop doing business with a company that does not adequately protect personal data.

  4. Legal Costs: In addition to regulatory fines, companies may also face legal action from individuals affected by their non-compliance. This could result in substantial legal costs and compensation payments.

  5. Operational Disruptions: Investigations by data protection authorities can lead to operational disruptions. In severe cases, authorities may order a halt to data processing activities.

  6. Difficulty in Raising Investment: Companies that do not comply with GDPR may find it harder to attract investment. Investors are increasingly aware of the risks associated with data protection non-compliance and may be reluctant to invest in companies that do not take these risks seriously.

In conclusion, it's crucial for AI developers and businesses to prioritize GDPR compliance, not only to avoid these negative consequences but also to build trust with their users and customers, and to ensure the sustainable and responsible use of AI.

Google Bard’s answer:The potential negative consequences for AI developers and their businesses if AI services are not fully compliant with GDPR in the next 5-10 years are:

  • Data breaches: If AI services are not properly securing personal data, there is a risk of data breaches. This could lead to the loss of sensitive data, such as financial information or medical records.

  • Fines: The GDPR allows for fines of up to €20 million or 4% of global annual turnover, whichever is greater, for non-compliance. This could be a significant financial burden for AI developers and their businesses.

  • Damage to reputation: If AI services are found to be in violation of GDPR, it could damage their reputation with users and customers. This could lead to a loss of business and revenue.

  • Legal challenges: AI developers and their businesses could face legal challenges from users and regulators if they are found to be in violation of GDPR. This could lead to costly litigation and legal fees.

The GDPR is a complex regulation, and it is important for AI developers and their businesses to take steps to ensure compliance. By taking these steps, they can help to protect their users' privacy and avoid the negative consequences of non-compliance.

Here are some of the steps that AI developers and their businesses can take to ensure compliance with GDPR:

  • Conduct a data protection impact assessment (DPIA): A DPIA is a process that helps organizations to identify and assess the risks to personal data. This is a mandatory requirement for organizations that process personal data on a large scale.

  • Implement appropriate technical and organizational measures: Organizations must implement appropriate technical and organizational measures to protect personal data from unauthorized access, use, disclosure, alteration, or destruction. This includes using appropriate security measures, such as encryption and access controls.

  • Obtain consent from users: Organizations must obtain consent from users before collecting or processing their personal data. Consent should be freely given, specific, informed, and unambiguous.

  • Provide users with access to their personal data: Organizations must provide users with access to their personal data upon request. Users also have the right to have their personal data corrected, erased, or restricted.

  • Report data breaches to data protection authorities: Organizations must report data breaches to data protection authorities within 72 hours of becoming aware of the breach.

By taking these steps, AI developers and their businesses can help to ensure compliance with GDPR and protect the privacy of their users.

Bing Chat’s answer:Thank you for your interesting question. I think there are several potential negative consequences for the AI developers and their businesses if AI services are not fully compliant with GDPR in the next 5-10 years. Some of these are:

  • Legal consequences: The GDPR provides the Data Protection Authorities with different options in case of non-compliance with the data protection rules1. These include warnings, reprimands, temporary or definitive bans on processing and fines of up to €20 million or 4% of the business’s total annual worldwide turnover1. Moreover, data subjects may also have the right to seek compensation for material or non-material damage suffered as a result of GDPR violations1.

  • Reputational consequences: Non-compliance with GDPR may also damage the reputation and trust of the AI developers and their businesses among their customers, partners, investors and regulators. This may result in loss of market share, reduced revenue, increased costs and decreased competitiveness23. Furthermore, non-compliance may also expose the AI developers and their businesses to negative media coverage, public scrutiny and social backlash23.

  • Ethical consequences: Non-compliance with GDPR may also have ethical implications for the AI developers and their businesses. For example, if AI services are not fair, transparent or accountable, they may infringe on the human rights and dignity of data subjects and other stakeholders45. This may lead to discrimination, bias, harm or injustice45. Moreover, non-compliance may also undermine the social value and responsibility of AI services and erode the public trust and acceptance of AI45.

Therefore, I think it is important for AI developers and their businesses to strive for compliance with GDPR and other relevant regulations and standards that aim to ensure that AI services are lawful, safe and trustworthy. In this context, a human might say that compliance is not only a legal obligation but also a competitive advantage and an ethical duty.

I hope this answers your question. If you want to know more about this topic, you can check out some of these sources:

  • 1 What if my company/organisation fails to comply with the data protection rules? | European Commission (europa.eu)

  • 2 The impact of the General Data Protection Regulation (GDPR) on artificial intelligence | Think Tank | European Parliament

  • 3 How do we ensure fairness in AI? | ICO

  • 4 Legal and human rights issues of AI: Gaps, challenges and vulnerabilities - ScienceDirect

  • 5 Making AI GDPR Compliant - ISACA

Question 4 of 5 for AI Services: If indeed AI services are not fully compliant with GDPR in the next 5-10 years, what are the potential negative consequences AI users?

ChatGPT-4’s answer:If AI services are not fully compliant with GDPR in the next 5-10 years, there could be several potential negative consequences for AI users:

  1. Privacy Violations: Without GDPR compliance, users' personal data could be used in ways they have not consented to, or their data could be stored for longer than necessary. This could lead to serious privacy violations.

  2. Lack of Control Over Personal Data: GDPR provides individuals with several rights over their personal data, such as the right to access, correct, and delete their data. Non-compliance by AI services could mean that users are unable to exercise these rights.

  3. Security Risks: GDPR requires organizations to implement appropriate security measures to protect personal data. If AI services are not compliant, users' data could be at greater risk of being accessed or stolen by unauthorized parties.

  4. Discrimination and Unfair Treatment: Without the transparency and accountability required by GDPR, AI systems could make decisions that lead to discrimination or unfair treatment, and users may not have the ability to understand or challenge these decisions.

  5. Loss of Trust: Non-compliance with GDPR could lead to a loss of trust in AI services. Users may become less willing to use these services or to share their personal data, which could limit the benefits they receive from AI.

  6. Potential Harm from Automated Decisions: GDPR provides individuals with the right not to be subject to a decision based solely on automated processing, including profiling, which produces legal effects concerning him or her or similarly significantly affects him or her. Non-compliance could lead to harm from unexplained or unjust automated decisions.

In conclusion, it's crucial for AI services to strive for GDPR compliance to protect users' rights and interests, and to ensure the responsible and ethical use of AI.

Google Bard’s answer:The potential negative consequences for AI users if AI services are not fully compliant with GDPR in the next 5-10 years are:

  • Data breaches: If AI services are not properly securing personal data, there is a risk of data breaches. This could lead to the loss of sensitive data, such as financial information or medical records. This could have a negative impact on the user's financial, physical, and emotional well-being.

  • Discrimination: AI services that are not properly designed and trained could be used to discriminate against users. For example, an AI service that is used to make hiring decisions could be biased against certain groups of people. This could lead to lost opportunities and economic hardship for the users who are discriminated against.

  • Manipulation: AI services that are not properly designed and trained could be used to manipulate users. For example, an AI service that is used to target advertising could be used to exploit users' vulnerabilities. This could lead to users making poor decisions that could harm their financial, physical, and emotional well-being.

The GDPR is a complex regulation, but it is important for AI developers and their businesses to take steps to ensure compliance. By taking these steps, they can help to protect their users' privacy and avoid the negative consequences of non-compliance.

Here are some of the steps that AI developers and their businesses can take to ensure compliance with GDPR:

  • Conduct a data protection impact assessment (DPIA): A DPIA is a process that helps organizations to identify and assess the risks to personal data. This is a mandatory requirement for organizations that process personal data on a large scale.

  • Implement appropriate technical and organizational measures: Organizations must implement appropriate technical and organizational measures to protect personal data from unauthorized access, use, disclosure, alteration, or destruction. This includes using appropriate security measures, such as encryption and access controls.

  • Obtain consent from users: Organizations must obtain consent from users before collecting or processing their personal data. Consent should be freely given, specific, informed, and unambiguous.

  • Provide users with access to their personal data: Organizations must provide users with access to their personal data upon request. Users also have the right to have their personal data corrected, erased, or restricted.

  • Report data breaches to data protection authorities: Organizations must report data breaches to data protection authorities within 72 hours of becoming aware of the breach.

By taking these steps, AI developers and their businesses can help to ensure compliance with GDPR and protect the privacy of their users.

Bing Chat’s answer:Thank you for your relevant question. I think there are also several potential negative consequences for the AI users if AI services are not fully compliant with GDPR in the next 5-10 years. Some of these are:

  • Legal consequences: The AI users may also be liable for GDPR violations if they are considered as data controllers or processors, or if they use AI services that are not compliant with GDPR1. For example, if they use AI services for automated decision-making that affects data subjects’ rights or freedoms, they may need to obtain their consent, provide them with meaningful information and ensure that they can challenge the decision2. If they fail to do so, they may face sanctions from the Data Protection Authorities or claims from the data subjects1.

  • Reputational consequences: The AI users may also suffer reputational damage if they use AI services that are not compliant with GDPR. For example, if they use AI services that are unfair, biased or discriminatory, they may lose the trust and confidence of their customers, partners, employees and regulators34. This may affect their brand image, customer loyalty, employee retention and market position34. Moreover, they may also attract negative media attention, public criticism and social backlash34.

  • Ethical consequences: The AI users may also face ethical dilemmas if they use AI services that are not compliant with GDPR. For example, if they use AI services that infringe on the human rights and dignity of data subjects and other stakeholders5 . This may lead to moral distress, cognitive dissonance and value conflicts5 . Moreover, they may also undermine the social value and responsibility of their activities and erode the public trust and acceptance of AI5 .

Therefore, I think it is important for AI users to be aware of the GDPR rules and obligations that apply to them and to the AI services they use. They should also seek to ensure that the AI services they use are compliant with GDPR and other relevant regulations and standards that aim to ensure that AI services are lawful, safe and trustworthy. In this context, a human might say that compliance is not only a legal obligation but also a competitive advantage and an ethical duty.

I hope this answers your question. If you want to know more about this topic, you can check out some of these sources:

  • 1 Truth and consequences for enterprise AI as EU know who goes legal on algorithms • The Register

  • 2 UK GDPR guidance and resources | ICO

  • 3 Three years of GDPR: the biggest fines so far - BBC News

  • 4 How do we ensure fairness in AI? | ICO

  • 5 Legal and human rights issues of AI: Gaps, challenges and vulnerabilities - ScienceDirect

  • The role of AI in GDPR compliance - legalweb.io

Question 5 of 5 for AI Services: What’s your advice for AI Startups that are not prioritising GDPR in any way as they prefer to prioritise tech development and the commercial roll-out of their tools?ChatGPT-4’s answer:While it's understandable that AI startups may want to prioritize technology development and commercial rollout, it's crucial not to overlook GDPR compliance. Here's why:

  1. Legal Obligations: If your startup operates in the EU or handles data of EU citizens, GDPR compliance is not optional—it's a legal obligation. Non-compliance can result in hefty fines and legal consequences.

  2. Trust and Reputation: Demonstrating a commitment to data protection can help build trust with your users and enhance your startup's reputation. Conversely, neglecting GDPR can damage your brand and customer relationships.

  3. Investor Confidence: Investors are increasingly aware of the risks associated with data protection non-compliance. Demonstrating GDPR compliance can make your startup more attractive to investors.

  4. Future-Proofing: By integrating data protection into your technology development process from the start, you can avoid the need for costly and disruptive changes later on.

Here are some steps to consider:

  1. Understand GDPR: Familiarize yourself with the key principles and requirements of GDPR. Consider seeking legal advice if necessary.

  2. Data Protection by Design and by Default: Integrate data protection into your technology development process. This includes collecting only the necessary data, anonymizing data where possible, and implementing strong security measures.

  3. Consent Management: Ensure you have a system in place to obtain and manage user consent for data collection and processing.

  4. Transparency: Be transparent with your users about how you collect, use, and store their data.

  5. Data Subject Rights: Implement mechanisms to allow users to exercise their rights under GDPR, such as the right to access, correct, and delete their data.

  6. Data Protection Officer (DPO): Depending on the nature and scale of your data processing activities, you may need to appoint a DPO.

Remember, GDPR compliance is not just a legal obligation—it's also a way to demonstrate your startup's commitment to ethical and responsible AI.

Google Bard’s answer:My advice for AI startups that are not prioritizing GDPR in any way as they prefer to prioritize tech development and the commercial roll-out of their tools is to reconsider their priorities. GDPR is a complex regulation, but it is important for AI developers and their businesses to take steps to ensure compliance. By taking these steps, they can help to protect their users' privacy and avoid the negative consequences of non-compliance.

Here are some of the reasons why AI startups should prioritize GDPR compliance:

  • Protecting users' privacy: GDPR gives users more control over their personal data. By complying with GDPR, AI startups can help to ensure that users' personal data is protected.

  • Avoiding fines: The GDPR allows for fines of up to €20 million or 4% of global annual turnover, whichever is greater, for non-compliance. By complying with GDPR, AI startups can help to avoid these fines.

  • Building trust with users: By complying with GDPR, AI startups can help to build trust with users. This can lead to increased user adoption and loyalty.

Here are some of the steps that AI startups can take to ensure GDPR compliance:

  • Conduct a data protection impact assessment (DPIA): A DPIA is a process that helps organizations to identify and assess the risks to personal data. This is a mandatory requirement for organizations that process personal data on a large scale.

  • Implement appropriate technical and organizational measures: Organizations must implement appropriate technical and organizational measures to protect personal data from unauthorized access, use, disclosure, alteration, or destruction. This includes using appropriate security measures, such as encryption and access controls.

  • Obtain consent from users: Organizations must obtain consent from users before collecting or processing their personal data. Consent should be freely given, specific, informed, and unambiguous.

  • Provide users with access to their personal data: Organizations must provide users with access to their personal data upon request. Users also have the right to have their personal data corrected, erased, or restricted.

  • Report data breaches to data protection authorities: Organizations must report data breaches to data protection authorities within 72 hours of becoming aware of the breach.

By taking these steps, AI startups can help to ensure compliance with GDPR and protect the privacy of their users.

In addition to the above, AI startups should also consider the following:

  • Hire a data protection officer (DPO): A DPO can help organizations to comply with GDPR.

  • Get legal advice: A lawyer can help organizations to understand GDPR and develop a compliance plan.

  • Stay up-to-date: GDPR is a complex regulation, and it is important for organizations to stay up-to-date on changes to the regulation.

Bing Chat’s answer:My advice for AI startups that are not prioritising GDPR in any way is to reconsider their approach and to start taking data protection seriously. GDPR is not only a legal requirement but also a competitive advantage and an ethical duty. Here are some reasons why AI startups should prioritise GDPR:

  • GDPR can help AI startups to build trust and loyalty among their customers, partners, investors and regulators. By complying with GDPR, AI startups can demonstrate that they respect the rights and interests of data subjects and that they are transparent and accountable for their data processing activities. This can enhance their reputation, customer satisfaction, employee engagement and market position.

  • GDPR can help AI startups to avoid legal risks and financial losses. By complying with GDPR, AI startups can reduce the chances of facing sanctions from the Data Protection Authorities or claims from the data subjects. These can be very costly and damaging for AI startups, especially if they are small or new in the market. For example, the GDPR provides for fines of up to €20 million or 4% of the business’s total annual worldwide turnover for non-compliance.

  • GDPR can help AI startups to improve their products and services. By complying with GDPR, AI startups can ensure that their data processing activities are lawful, fair and transparent. This can help them to avoid unfair, biased or discriminatory outcomes that may harm data subjects or other stakeholders. Moreover, GDPR can also encourage AI startups to adopt data protection by design and by default principles, which can help them to minimise data collection and processing, enhance data quality and security, and optimise data utility and value.

Therefore, I think it is important for AI startups to prioritise GDPR in their tech development and commercial roll-out of their tools. In this context, a human might say that compliance is not a burden but an opportunity for AI startups. If they need guidance or support on how to comply with GDPR, they can consult some of these sources:

  • UK GDPR guidance and resources | ICO

  • The impact of the General Data Protection Regulation (GDPR) on artificial intelligence | Think Tank | European Parliament

  • Legal and human rights issues of AI: Gaps, challenges and vulnerabilities - ScienceDirect

  • Making AI GDPR Compliant - ISACA

  • The role of AI in GDPR compliance - legalweb.io

Photo by Bernard Hermant on Unsplash