AI Act and GDPR: Addressing Legal Uncertainty

Legal Uncertainty Arising from the Interaction between the AI Act and GDPR

The interaction between the AI Act and the General Data Protection Regulation (GDPR) poses significant risks of legal uncertainty that may necessitate a reform of the GDPR or the issuance of further guidance. This concern has been highlighted in a recent study conducted by the European Parliament regarding the regulation of algorithmic discrimination.

The AI Act: Aims and Objectives

Enforced in August 2024, the AI Act is designed to promote a human-centered, trustworthy, and sustainable approach to artificial intelligence. Central to its mission is the respect for the fundamental rights and freedoms of individuals, particularly the right to protection of personal data. A primary objective of this legislation is to mitigate discrimination and bias in the development, deployment, and use of high-risk AI systems.

High-Risk AI Systems

High-risk AI systems are those that can potentially harm the safety of individuals or violate their fundamental rights. For instance, these systems may assess whether an individual qualifies for a job or for a loan to purchase an apartment. The AI Act allows for the processing of special categories of personal data under specific conditions, including the implementation of privacy protection measures, to prevent discrimination arising from these technologies.

Challenges Presented by GDPR

On the other hand, the GDPR imposes strict limitations on the processing of certain categories of personal data, which could hinder the effective use of AI technologies across various sectors of the economy. In light of the widespread processing of both personal and non-personal data, there exists a prevailing sense of shared uncertainty regarding the interpretation of provisions within the AI Act that pertain to the processing of special categories of personal data.

Recommendations for Reform

The European Parliament study suggests that a reform of the GDPR or additional guidelines clarifying its relationship with the AI Act could help resolve the existing legal ambiguities. Such actions would aim to harmonize the objectives of both legislations, ensuring the ethical use of AI while safeguarding individuals’ rights.

In conclusion, as AI technologies continue to evolve, the dialogue surrounding their regulation in conjunction with privacy laws like the GDPR remains critical to fostering an environment that both encourages innovation and protects fundamental rights.

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