The Role of Data Privacy in AI Governance The Role of Data Privacy in AI Governance

In the rapidly evolving landscape of Artificial Intelligence (AI), data privacy has a pivotal role to play in AI governance. AI has become increasingly integrated into various aspects of society, from commercial banking to healthcare and social media to retail. With that, the need to protect individuals’ personal data and use the data in an ethical way has become even more critical in building trust in AI and ensuring compliance with laws and regulations. This blog explores the multifaceted role of data privacy in AI governance, highlighting its importance, challenges, and future directions.

In the context of AI, data privacy involves ensuring that the vast amounts of personal data used to train, test, and deploy AI models are collected and used responsibly and in compliance with relevant laws and regulations, such as the General Data Protection Regulation (GDPR) and the AI Act. In fact, the AI Act has classified eight categories of ‘high risk’ AI systems, of which seven are likely to process (special categories of) personal data. 

As the use of AI grows, nations are rushing to legislate and create standards for the responsible use of AI, with the European Union being the front runner with the EU AI Act. While the GDPR and AI Act differ significantly in scope and structure, both share a common goal of safeguarding fundamental rights and encompass similar principles such as transparency, fairness, and accuracy. Moreover, key concepts like risk assessments and automated decision-making highlight their overlap. Recognizing this overlap is vital as it enables a holistic approach and integration of privacy and AI, which ensures that both domains can be dealt with in an (cost-)efficient and effective way.

Data privacy is a critical element of AI governance, essential for protecting individual rights, building trust, and ensuring compliance with regulations. Privacy professionals, such as Data Protection Officers (DPO) and Privacy Officers, should therefore be included in organizations’ AI Governance structures. Moreover, privacy professionals have long been responsible for safeguarding personal data, offer valuable insights and best practices that can greatly benefit newly appointed (Chief) AI Officers. Among many other elements, privacy professionals are well equipped in navigating complex regulatory environments, implementing robust privacy programs, routinely conducting risk assessments and fostering a culture of responsible and ethical use of personal data. By learning from the experiences and practices of privacy professionals, organizations can foster a robust AI governance framework that protects individuals’ rights while leverage the potential of AI. 

As the use of AI grows, nations are rushing to legislate and create standards for the responsible use of AI, with the European Union being the front runner with the EU AI Act. While the GDPR and AI Act differ significantly in scope and structure, both share a common goal of safeguarding fundamental rights and encompass similar principles such as transparency, fairness, and accuracy. Moreover, key concepts like risk assessments and automated decision-making highlight their overlap. Recognizing this overlap is vital as it enables a holistic approach and integration of privacy and AI, which ensures that both domains can be dealt with in an (cost-)efficient and effective way.

AI is a multifaceted field that includes a wide range of disciplines, such as data & analytics, data privacy, risk and compliance, ethics, computer science and many more. It is therefore essential that AI Governance involves multiple functions rather than being centralized within one single department or discipline. But how to do that in practice? With the rise of AI, there has been a trend among organizations of setting up an AI Board, capable of effectively managing the challenges and opportunities presented by AI and making decisions in line with the organization’s business strategy and risk appetite. The AI Board should emphasize opportunities for innovation in addition to compliance. Establishing a multidisciplinary AI Board in which a DPO takes place, can support to embed and formalize the role of privacy professionals in AI Governance. The DPO should be represented in the AI Board and should play a proactive role in informing the organization about both the risks and possibilities of AI, personal data, and individuals. The DPO can play a vital role in ensuring that privacy considerations are integrated into AI initiatives from the outset (Privacy by Design), while decision-making authority should rest with the business.

AI, being a multifaceted technology, introduces a new dimension to Governance, Risk, and Compliance (GRC), creating new roles and redefining current ones, pushing leaders to adapt. There should be a seat at the table for privacy professionals in AI Governance while simultaneously approaching AI governance from a holistic perspective involving multiple disciplines. Navigating AI Governance for privacy professionals means ensuring that AI initiatives comply with relevant data regulations and standards, but also help fostering a culture of responsible innovation across the organization and support the organization in striving towards a healthy risk appetite.