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AI Innovation in Europe Requires a Balanced and Risk-Based Interpretation of the GDPR - Information Technology Industry Council
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AI Innovation in Europe Requires a Balanced and Risk-Based Interpretation of the GDPR</h1> <div class="df df-lt fcol df-lg-row subsection main sub news-events techwonk-blog"> <div class="d-r c-12 c-lg-9 page-column--right"> <div class="main-content"> <div class="blog-post post"> <div class="df blog-post__header"> <div class="fcol"> <a title="Marco Leto Barone" aria-label="Posts by Marco Leto Barone" href="/news-events/techwonk-blog/?author=498d51e7-132d-4954-9547-134ded83da4b" class="d-br d-l blog-post__photo" style="background-image:url('/resize_image?maxh=240&maxw=240&id=aaa363b2-eb41-4abf-b851-af09295e8735')"></a> </div> <div class="d-br d-l blog-post__description"> <div class="blog-post__title" tabindex="0"> AI Innovation in Europe Requires a Balanced and Risk-Based Interpretation of the GDPR </div> <div class="mb-2 blog-post__published"> <span class="flc ff-l t-f-lb news-events-entry__date" tabindex="0"> <svg xmlns="http://www.w3.org/2000/svg" height="48" width="48" viewBox="0 0 48 48"><path fill="#090045" d="M9 44q-1.2 0-2.1-.9Q6 42.2 6 41V10q0-1.2.9-2.1Q7.8 7 9 7h3.25V4h3.25v3h17V4h3.25v3H39q1.2 0 2.1.9.9.9.9 2.1v31q0 1.2-.9 2.1-.9.9-2.1.9Zm0-3h30V19.5H9V41Zm0-24.5h30V10H9Zm0 0V10v6.5Z"/></svg> November 8, 2024 </span> by <a class="list-entry__link author" href="http://www.itic.org/about/staff/marco-leto-barone" target="_self"> Marco Leto Barone (ITI) </a> <a class="fc-pb list-entry__link view-all" href="/news-events/techwonk-blog/?author=498d51e7-132d-4954-9547-134ded83da4b"> View all posts by Marco Leto Barone </a> </div> </div> </div> <div class="blog-post__body wysiwyg-body media-details__content" tabindex="0"> <div> <div> <p paraid="163073969" paraeid="{0e5c31d2-d8fe-434c-a168-aae5ddfe7b0e}{216}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>On 5 November, ITI </span><span>participated</span><span> in the European Data Protection Board’s (EDPB) stakeholder workshop on AI Models. The workshop was meant to inform the EDPB’s opinion on the use of personal data for AI models, which is expected before the end of the year. Ahead of the workshop, ITI joined 14 other industry associations in </span></span><a href="https://www.itic.org/documents/europe/Joint-industry-statement-on-the-upcoming-EDPB-Opinion-on-data-processing-in-the-context-of-AI-model-training.pdf" target="_blank" rel="noreferrer noopener"><span><span data-contrast="none" xml:lang="EN-US" lang="EN-US"><span data-ccp-charstyle="Hyperlink">a joint statement</span></span></span></a><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>, calling on the EDPB to take a balanced, risk-based</span><span>,</span><span> and pro-innovation approach</span><span> </span><span>to </span><span>data processing for </span><span>AI development</span><span> and deployment</span><span>.</span></span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div> <p paraid="1154277892" paraeid="{3c227a25-df39-481d-b690-5fb52ecac787}{4}"><strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">Companies must be able to access and use personal data for developing and deploying innovative and transformative AI technologies in Europe. </span></strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>Such ac</span><span>cess is </span><span>crucial for the EU’s digital transformation and competitiveness goals. The opinion must recognize that this can be done in a way that is </span><span>proportionate, risk-based</span><span>,</span><span> and aligned with the GDPR. </span></span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div> <p paraid="1448216393" paraeid="{3c227a25-df39-481d-b690-5fb52ecac787}{28}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>To do so, ITI shared the following </span><span>recommendations</span><span>:</span></span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div><ol role="list" start="1"> <li data-leveltext="%1." data-font="" data-listid="1" data-list-defn-props="{"335552541":0,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1" role="listitem"> <p paraid="1598279835" paraeid="{3c227a25-df39-481d-b690-5fb52ecac787}{40}"><strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">Legitimate interest is an appropriate legal basis for AI model training</span><span data-ccp-props="{}"> </span></strong></p> </li> </ol></div> <div> <p paraid="1202111927" paraeid="{3c227a25-df39-481d-b690-5fb52ecac787}{64}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>The </span><span>EDPB </span></span><strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">should recognize that legitimate interest is an appropriate and robust legal basis</span></strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span> for processing personal data</span><span> for the training of AI models</span><span>, as</span><span> also</span><span> previously recognized by other European regulators like the French Data Protection Authority. </span></span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div> <p paraid="1677450633" paraeid="{3c227a25-df39-481d-b690-5fb52ecac787}{88}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>AI models </span><span>have the</span><span> </span><span>potential to</span><span> significantly</span><span> </span><span>benefit</span><span> society, businesses</span><span>,</span><span> and individuals. AI can increase productivity, boost economic growth, support scientific discovery and healthcare, and enable transformative use cases. </span></span><strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">These considerations can help tip the legitimate interest balance in favor of the controller.</span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></strong></p> </div> <div> <p paraid="1349438394" paraeid="{3c227a25-df39-481d-b690-5fb52ecac787}{116}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>Of course, this will be possible if the circumstances </span><span>o</span><span>f</span><span> the processing are assessed, and the </span><span>appropriate</span><span> safeguards</span><span> are deployed when necessary. Importantly, the opinion should note that the commercial goal of developing an AI model should not prevent legitimate interest. As considered by the Court of Justice of the EU, a wide range of interests may be considered legitimate, including those of commercial nature.</span></span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div> <p paraid="740726155" paraeid="{3c227a25-df39-481d-b690-5fb52ecac787}{138}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">Finally, </span><strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">the opinion should not consider consent as a preferred legal basis.</span></strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span> Given the scale of data needed for most AI models, obtaining consent would be impractical, disproportionate</span><span>,</span><span> and lead to reduced representativity of datasets. </span></span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div><ol role="list" start="2"> <li data-leveltext="%1." data-font="" data-listid="1" data-list-defn-props="{"335552541":0,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1" role="listitem"> <p paraid="1011990099" paraeid="{3c227a25-df39-481d-b690-5fb52ecac787}{152}"><strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">AI models are not searchable databases of personal data</span><span data-ccp-props="{}"> </span></strong></p> </li> </ol></div> <div> <p paraid="1842197564" paraeid="{3c227a25-df39-481d-b690-5fb52ecac787}{164}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">AI models are a mathematical representation of statistical patterns. </span><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><strong>They are not designed to memorize information about specific individuals</strong></span><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">, and once trained, they are not a </span><strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">searchable database of personal data</span><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">.</span></strong><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div> <p paraid="1679793817" paraeid="{3c227a25-df39-481d-b690-5fb52ecac787}{178}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>The EDPB opinion should reflect this technical reality. When an AI model is trained, the training data is broken down into numerical ‘</span><span>tokens</span><span>.</span><span>’ </span><span>For example, in the case of an LLM, tokens would </span><span>represent</span><span> words, their meaning and relations (e.g., the word dog is associated with ‘animal’ but not with ‘plant’).</span><span> </span><span>The model performs mathematical operations to correlate these tokens, and it learns correlations in the form of numerical weights. When prompted, the model will then provide an output that predicts the </span><span>most likely answer</span><span> to a user’s prompt, based on the patterns and correlations it has learned. </span><span>For example, in the case of an LLM, tokens would </span><span>represent</span><span> words, their meaning and relations (e.g., the word dog is associated with ‘animal’ but not with ‘plant’).</span></span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div> <p paraid="1631423865" paraeid="{3c227a25-df39-481d-b690-5fb52ecac787}{204}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">As such, the model itself does not process personal data as per the meaning of article 4 of the GDPR, as also recognized by the </span><a href="https://datenschutz-hamburg.de/fileadmin/user_upload/HmbBfDI/Datenschutz/Informationen/240715_Discussion_Paper_Hamburg_DPA_KI_Models.pdf" target="_blank" rel="noreferrer noopener"><span data-contrast="none" xml:lang="EN-US" lang="EN-US"><span data-ccp-charstyle="Hyperlink">discussion paper</span></span></a><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span> on Large Language Models (LLMs) from the Hamburg Commissioner for Data protection</span><span>. </span><span> </span><span>I</span><span>f personal data is processed while the model is being trained or </span><span>deployed, this</span><span> </span><span>shall</span><span> </span><span>be done </span><span>in </span><span>compliance </span><span>with GDPR</span><span>.</span></span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div><ol role="list" start="3"> <li data-leveltext="%1." data-font="" data-listid="1" data-list-defn-props="{"335552541":0,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="3" data-aria-level="1" role="listitem"> <p paraid="1767673436" paraeid="{5b0676be-7248-424d-96ea-6233b7a8f0b3}{2}"><strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">Access to a wide variety of data is needed for robust AI</span><span data-ccp-props="{}"> </span></strong></p> </li> </ol></div> <div> <p paraid="133513059" paraeid="{5b0676be-7248-424d-96ea-6233b7a8f0b3}{10}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">The opinion should recognize that </span><strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">processing a wide range of data – including data about sensitive topics – is fundamental to achieve robust and representative AI models</span></strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span> that reflect the cultural, </span><span>geographic</span><span> and linguistic diversity of Europe</span><span>. </span></span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div> <p paraid="2142034546" paraeid="{5b0676be-7248-424d-96ea-6233b7a8f0b3}{38}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>Crucially, the ability to legally process data about sensitive </span><span>topics</span><span> </span><span>–</span><span> </span><span>that is information related to sensitive attributes</span><span> (such as gender</span><span> or</span><span> religion)</span><span>, </span><span>but outside the scope of</span><span> article 9 of the GDPR -</span><span> </span><span>will be important for companies to </span><span>identify</span><span> a</span><span>nd mitig</span><span>ate </span><span>potential </span><span>biases – which is required by the EU AI Act.</span></span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div> <p paraid="553863047" paraeid="{5b0676be-7248-424d-96ea-6233b7a8f0b3}{78}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>Rather than focusing on limiting the use of data, which will have negative consequences on businesses and individuals, the opinion should focus on </span><span>the identification and implementation of safeguards to ensure the safe and lawful processing of personal data</span><span>.</span></span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div><ol role="list" start="4"> <li data-leveltext="%1." data-font="" data-listid="1" data-list-defn-props="{"335552541":0,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="4" data-aria-level="1" role="listitem"> <p paraid="595635443" paraeid="{5b0676be-7248-424d-96ea-6233b7a8f0b3}{88}"><strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">Recognize diversity of AI models and complexity of value chains</span><span data-ccp-props="{}"> </span></strong></p> </li> </ol></div> <div> <p paraid="829323580" paraeid="{5b0676be-7248-424d-96ea-6233b7a8f0b3}{94}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>The exact safeguards applied to a specific AI project will depend on the </span><span>nature of the </span><span>model and the nature of the data being processed. </span><span>Actors across the AI value chain – such as deployers and developers - will also have </span><span>different roles</span><span> and risk management responsibilities. </span></span><strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">This is why the opinion should not be prescriptive and should maintain a flexible approach. </span></strong><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div> <p paraid="1627140096" paraeid="{5b0676be-7248-424d-96ea-6233b7a8f0b3}{116}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>Companies can implement different safeguards across </span><span>different stages</span><span> of the value chain to ensure the lawful processing of data. For example, data governance measures, de-duplication, minimization or </span><span>pseudonymization</span><span> can be helpful to address specific data protection risks at the training stage. On the other hand, measures like prompt and output filters can help address generative AI risks at the deployment </span><span>stage</span><span>. </span></span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> </div> <div> <div> <p paraid="1847999131" paraeid="{5b0676be-7248-424d-96ea-6233b7a8f0b3}{134}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>I</span><span>ndustry is continuously working to improve </span></span><strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">appropriate safeguards,</span></strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span> and we </span><span>h</span><span>ope to continue our collaboration with </span><span>regulators to further explain the state of the art. </span></span><strong><span data-contrast="auto" xml:lang="EN-GB" lang="EN-GB">A rigid and prescriptive approach may undermine the efforts to develop and deploy new safeguards.</span></strong><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div><ol role="list" start="5"> <li data-leveltext="%1." data-font="" data-listid="1" data-list-defn-props="{"335552541":0,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" aria-setsize="-1" data-aria-posinset="5" data-aria-level="1" role="listitem"> <p paraid="1214897928" paraeid="{5b0676be-7248-424d-96ea-6233b7a8f0b3}{166}"><strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">Data subject rights can be subject to limitations</span><span data-ccp-props="{}"> </span></strong></p> </li> </ol></div> <div> <p paraid="1250022023" paraeid="{5b0676be-7248-424d-96ea-6233b7a8f0b3}{186}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>Data subject rights are of fundamental importance for the protection of data subjects</span><span>. </span><span>However, </span></span><strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">the opinion should acknowledge that data subject rights can be subject to limitations</span></strong><span data-contrast="auto" xml:lang="EN-US" lang="EN-US">, both from a technical and legal perspective.</span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div> <p paraid="700573700" paraeid="{5b0676be-7248-424d-96ea-6233b7a8f0b3}{198}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>For example, it would be technically impossible to implement a right of rectification or erasure on the data </span><span>after the</span><span> </span><span>model</span><span> has been trained</span><span>, </span><span>without</span><span> re-training the model.</span><span> This would </span><span>be disproportionate</span><span>, costly</span><span>,</span><span> and resource intensive. Similarly, it would be technically impossible to </span><span>locate</span><span> and remove data about a specific individual after the data has been transformed and becomes part of a training dataset.</span></span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> <div> <p paraid="2060298662" paraeid="{5b0676be-7248-424d-96ea-6233b7a8f0b3}{232}"><span data-contrast="auto" xml:lang="EN-US" lang="EN-US"><span>Alternative measures for the protection of data subjects should be considered in these cases. Output-level </span><span>filters,</span><span> for </span><span>example,</span><span> can be an effective and proportionate solution to remove content that data subjects</span><span>.</span><span> </span></span><span data-ccp-props="{"335551550":6,"335551620":6}"> </span></p> </div> </div> </div> <div class="blog-post-links"> </div> <div class="blog-post-policy-tags"> <span class="post-policy-tags">Tags:</span> <a class='post-policy-tag' href='/news-events/techwonk-blog/?policy=artificial-intelligence'>Artificial Intelligence</a> </div> <div class="flc df-w share-buttons social-share"> <p class="social-share__label">Share:</p> <ul class="flc blog-post-share social-share__buttons" id="blog-post-share-3bc67696-6610-4811-bf6c-db86803ba3a6" data-url="https://www.itic.org//news-events/techwonk-blog/ai-innovation-in-europe-requires-a-balanced-and-riskbased-interpretation-of-the-gdpr" data-title="AI Innovation in Europe Requires a Balanced and Risk-Based Interpretation of the GDPR"> <li> <a href="http://www.facebook.com/share.php?u=https://www.itic.org//news-events/techwonk-blog/ai-innovation-in-europe-requires-a-balanced-and-riskbased-interpretation-of-the-gdpr" title="Share this page on Facebook" class="d-r mr-1 social-bar__feed social-bar--small__feed social-bar--small__feed--facebook " target="_blank">share on facebook</a> </li> <li> <a href="https://x.com/share?url=https://www.itic.org//news-events/techwonk-blog/ai-innovation-in-europe-requires-a-balanced-and-riskbased-interpretation-of-the-gdpr" title="Share this page on X" class="d-r mr-1 social-bar__feed social-bar--small__feed social-bar--small__feed--twitter " target="_blank">share on X</a> </li> <li> <a href="http://www.linkedin.com/shareArticle?mini=true&url=https://www.itic.org//news-events/techwonk-blog/ai-innovation-in-europe-requires-a-balanced-and-riskbased-interpretation-of-the-gdpr" title="Share this page on linkedin" class="d-r mr-1 social-bar__feed social-bar--small__feed social-bar--small__feed--linkedin " target="_blank">share on linkedin</a> </li> <li> <a href="mailto:?subject=AI Innovation in Europe Requires a Balanced and Risk-Based Interpretation of the GDPR&body=https://www.itic.org//news-events/techwonk-blog/ai-innovation-in-europe-requires-a-balanced-and-riskbased-interpretation-of-the-gdpr" title="Share this page on email" class="d-r mr-1 social-bar__feed social-bar--small__feed social-bar--small__feed--email " target="_blank">share on email</a> </li> </ul> </div> <div class="related f1 fcol news-events-entry__related news-events-entry-related"> <p class="news-events-entry-related__header--read-more-like-this" tabindex="0"><span>Related</span></p> <ul> <li class="fl news-events-entry-related__entry"> <a class="related-content__link news-events-entry-related__link" href="/news-events/techwonk-blog/meaningfully-advancing-global-ai-governance-what-we-hope-to-see-at-the-france-ai-action-summit" >Meaningfully Advancing Global AI Governance: What We Hope to See at the France AI Action Summit <span class="fc related-content__read-more"> <svg xmlns="http://www.w3.org/2000/svg" height="24" viewBox="0 -960 960 960" width="24"><path d="M647-440H160v-80h487L423-744l57-56 320 320-320 320-57-56 224-224Z"></path></svg> </span> </a> <div class="related-content__date">February 4, 2025</div> <div class="fs-4 related-content__description"> In November, ITI was on the ground on the margins of the inaugural Convening of the International Network of AI Safety Institutes, and provided perspectives on the activities that we thought would be most <a class="read-more" href="/news-events/techwonk-blog/meaningfully-advancing-global-ai-governance-what-we-hope-to-see-at-the-france-ai-action-summit">[...]</a> </div> </li> <li class="fl news-events-entry-related__entry"> <a class="related-content__link news-events-entry-related__link" href="/news-events/techwonk-blog/uk-ai-opportunities-action-plan-a-bold-blueprint-for-innovation-and-growth" >UK AI Opportunities Action Plan: A Bold Blueprint for Innovation and Growth <span class="fc related-content__read-more"> <svg xmlns="http://www.w3.org/2000/svg" height="24" viewBox="0 -960 960 960" width="24"><path d="M647-440H160v-80h487L423-744l57-56 320 320-320 320-57-56 224-224Z"></path></svg> </span> </a> <div class="related-content__date">January 15, 2025</div> <div class="fs-4 related-content__description"> On January 13, the UK government launched its long-awaited “AI Opportunities Action Plan,” a comprehensive and ambitious agenda of 50 actions to boost AI development and adoption in the UK. 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