Is Your Organization’s Use of AI tools GDPR Compliant? A Practical Guide

Helena BrandtHelena Brandt
Written by
Helena Brandt
and
Josefine Karlsson
-
April 11, 2025

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Introduction

Artificial Intelligence (AI) is transforming how organisations process data, offering new possibilities for data-driven insights and innovation. However, ensuring compliance with the General Data Protection Regulation (GDPR)—the overarching EU legal framework for data protection—is crucial when adopting or designing AI tools. This guide aims to provide practical tips for privacy professionals seeking to maintain GDPR compliance while harnessing the power of AI.

The Importance of a GDPR-Compliant AI Framework

AI tools allow organisations to derive insights from vast amounts of data, enabling more effective decision-making and the ability to automate processes at scale. Yet the potential for unintentionally processing personal data is high, especially with large-scale data handling. Before exploring more sophisticated AI solutions, it is essential to ensure that existing data protection policies and practices under the GDPR remain robust, so that AI becomes an asset rather than a liability.

Get the Privacy Team Involved in the AI Policy-Making Process

It is helpful to align newly introduced AI policies with existing privacy policies early on, so that personal data processing is carried out in a way that naturally complies with GDPR. This step makes it easy for employees to follow established guidelines and prevents confusion later in the AI development lifecycle.

Educate the Organisation

Raising awareness about data anonymisation, pseudonymisation, and encryption among non-privacy specialists is often necessary so that they understand the difference between genuinely anonymised data and personal data that is only masked or hashed. The privacy team can help clarify why pseudonymised data still falls within the GDPR’s definition of personal data and therefore remains subject to GDPR obligations. Training sessions and accessible resources can help colleagues grasp the nuances of anonymisation in a GDPR context.

Invite Privacy Involvement in the Procurement of AI Tools

Procurement processes should always involve privacy experts at an early stage. This ensures that any potential AI tool aligns with GDPR requirements, is designed with privacy-by-design in mind, and can be used for personal data processing without violating data protection laws. Reviewing the terms and conditions, as well as the data processing agreement (DPA) with the vendor, is essential to determine whether user data might be employed as training data for further AI development. If it is, privacy teams should provide a mechanism for data subjects to opt out of such usage, thus maintaining compliance with GDPR.

Conduct a Data Protection Impact Assessment (DPIA)

A DPIA is often mandatory when new technologies or large-scale data processing pose a high risk to individuals’ rights and freedoms. Since AI often involves predictive analytics, profiling, or processing of sensitive data, completing a DPIA provides an opportunity to identify and mitigate risks before they escalate. It also helps fulfil GDPR obligations by documenting the decision-making process around the tool’s development and implementation.

Maintain Transparency

Being transparent about how and when your organisation uses AI is a simple but powerful step toward building trust. GDPR requires controllers to provide individuals with clear information about how their data is collected and processed. Implementing straightforward language and even basic visuals to illustrate data flows can help users and regulators see that your organisation handles personal data responsibly.

Mind Profiling and Automated Decision-Making

AI can automate decisions based on profiling—analysing data to predict behaviours or traits. Where such automated decisions significantly affect individuals, GDPR calls for meaningful human oversight and clear explanations of the logic involved. It is prudent to verify that AI-driven decisions are not discriminatory, erroneous, or damaging to individuals, especially during testing phases. Keep a human in the loop to validate the AI’s output and mitigate risks of unjust outcomes.

Minimise the Data You Use

Before feeding any dataset into the AI tool, ask whether personal information is strictly necessary to achieve your objective. If not, consider anonymised or synthetic data. Under the GDPR, personal data should be adequate and relevant, but limited to what is necessary for the intended purpose. Adopting a data-minimisation mindset early on helps ensure compliance and reduces potential liabilities later.

Summary

By integrating AI into your organisation’s processes with GDPR in mind, you actively protect individuals’ rights and your organisation’s reputation. The presence of robust data protection policies, combined with thorough DPIAs, minimised data use, and careful AI procurement, contributes to a framework where innovation can thrive. Keeping your privacy team involved from the outset makes it easier to align your AI initiatives with your existing obligations under the GDPR. With employee education and transparency at the forefront, you not only mitigate risk but also enhance trust among stakeholders.

If your organisation is exploring or already using AI technologies, make sure your privacy team is fully engaged. Conduct a DPIA if necessary, review your vendor agreements, and offer clear, user-friendly notices and opt-out mechanisms. For further guidance on ensuring your AI initiatives comply with GDPR, reach out to your internal privacy professionals or consult a specialised data protection adviser. By taking these steps now, your organisation will be well positioned to harness the power of AI while maintaining compliance with one of the most important data protection regulations in the world.