{"id":178355,"date":"1994-11-03T06:02:00","date_gmt":"1994-11-03T06:02:00","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=178355"},"modified":"2022-11-15T06:03:45","modified_gmt":"2022-11-15T06:03:45","slug":"automated-decision-gdpr","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/data-privacy-it\/automated-decision-gdpr\/","title":{"rendered":"Does the GDPR Allow My Business to Use Automated Decision Making in the UK?"},"content":{"rendered":"\n<p>The introduction of the General Data Protection Regulation caused businesses in the UK to rethink how they handled personal information. However, due to media attention mainly focusing on the ability of the <a href=\"https:\/\/ico.org.uk\/\">Information Commissioner&#8217;s Office<\/a> (ICO) to fine organisations up to \u00a317.5m, some businesses remain unaware of the more technical parts of the UK GDPR. One such example includes the restrictions on solely automated decision-making by companies in the UK. This article will explore what constitutes automated decision-making and the restrictions placed upon doing so by the <a href=\"https:\/\/legalvision.co.uk\/data-privacy-it\/how-does-gdpr-affect-my-business\/\">GDPR<\/a> to ensure your business does not risk a hefty financial penalty from the ICO.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Automated Decision-Making?<\/strong><\/h2>\n\n\n\n<p>The <a href=\"https:\/\/ico.org.uk\/\">ICO<\/a> defines this as constituting a decision-making process that is \u2018totally automated\u2019 and absent \u2018human influence on the outcome\u2019. This relates to processes involving handling an individual&#8217;s personal data.<\/p>\n\n\n\n<p>However, there are more straightforward definitions to unwrap, so let us explore both phrases in more detail.<\/p>\n\n\n\n<p>\u2018Totally automated\u2019 means a process within which the information is processed by a system or piece of electronic software. Therefore, it does not matter whether the information is <em>imputed <\/em>into the system by a human (typing the data into the system) or through software (via a website form).\u00a0Instead, it matters whether a human or automated system <em>considers<\/em> the information to create an outcome.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Similarly, the \u2018human influence on the outcome\u2019 wording demonstrates that the definition relies on whether a human is involved in the end decision.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Example<\/strong><\/h2>\n\n\n\n<p>So, let us consider the two different systems below. The first system will meet the definition of automated decision-making, whilst the second will not.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">System 1<\/h3>\n\n\n\n<p>Your company\u2019s website invites individuals to fill out an online application form for a vacancy. You have set the form to automatically filter out individuals who have placed a high figure in the \u2018preferred salary\u2019 section. Those individuals have their applications deleted before sight by HR (and HR never learns of any deleted applicants).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">System 2<\/h3>\n\n\n\n<p>Your organisation\u2019s website has the same online application form for a job vacancy. However, the form does not delete itself if some answers are not preferable. Instead, it marks the application in red when it reaches HR. The red marking shows that some answers were not ideal, but HR has the final decision on whether to invite the applicant to interview.<\/p>\n\n\n\n<p>In the first scenario, the electronic system automatically dictates the outcome without any oversight or double-checking by HR. However, in the second example, there is a human influence on the outcome because an individual in HR can overrule the system (for example, by concluding that the increased salary expectations are sensible given the high experience of the job candidate).<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n  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Instead, it only covers automated decision-making that \u2018produces legal effects\u2019 concerning individuals or \u2018similarly affects\u2019 individuals.<\/p>\n\n\n\n<p>What does it mean for a decision to \u2018produce legal effects\u2019 or \u2018similarly affect\u2019 a data subject?&nbsp; Let us explore these in more detail below.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Decisions Producing Legal Effects<\/strong><\/h2>\n\n\n\n<p>The GDPR classes a decision as producing \u2018legal effects\u2019 if it affects an individual\u2019s legal status or legal rights.&nbsp;&nbsp;<\/p>\n\n\n\n<p>So, for example, an individual has the legal right to apply for a job without discriminatory decision-making. This means that any job application process involving an automatic decision absent any human input will have a \u2018legal effect\u2019 and must comply with GDPR rules.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Decisions With Similar Effects to Those Affecting Legal Status<\/strong><\/h2>\n\n\n\n<p>The <a href=\"https:\/\/ico.org.uk\/\">ICO<\/a> states that this is a decision that has an impact equivalent to one that affects an individual\u2019s legal status. So, for example, any automatic system that impacts the well-being of children (say, a social media website that learns a child\u2019s viewing habits and suggests further content) will have a \u2018similar\u2019 effect.<\/p>\n\n\n\n<p>Other examples include decisions made by automated means that can impact an individual concerning any of the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>their health;<\/li><li>their financial position;&nbsp;<\/li><li>their employment status; or<\/li><li>their ability to access an essential service.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Does the GDPR Restrict Automated Decision-Making?<\/strong><\/h2>\n\n\n\n<p>The <a href=\"https:\/\/legalvision.co.uk\/data-privacy-it\/gdpr-myths\/\">GDPR<\/a> bans businesses in England from automating decision-making when:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>there is no human involvement or oversight regarding the outcome of the decision-making process; and<\/li><li>the decision has a legal effect (or similarly significant effect) on the individual.<\/li><\/ul>\n\n\n\n<p>If these conditions do not apply, you can use automated decision-making. However, if these conditions apply, you must not do so.<\/p>\n\n\n\n<p>Overall, you <em>can<\/em> put a largely automated system in place as long as a human makes the final decision. If you are unsure whether the two critical questions at (a) and (b) are met, you should consider obtaining legal advice.&nbsp; Any failure to do so may result in a fine from the ICO of up to \u00a317.5m, so it pays to be sure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h2>\n\n\n\n<p>The GDPR aims to protect individuals against unfair decisions made without human intervention.&nbsp; However, it only seeks to protect individuals from solely automated decisions that significantly impact them.&nbsp; Many business owners will run any automated decision-making process through an expert lawyer before implementing it.&nbsp; This is a sensible step to lower the risk of a hefty future fine for a breach of data protection law from the <a href=\"https:\/\/ico.org.uk\/\">ICO<\/a>.<\/p>\n\n\n\n<p>If you need help safely introducing an automated decision process, our experienced <a href=\"https:\/\/legalvision.co.uk\/it-lawyers-lp\/\">Data, Privacy and IT lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents.&nbsp; Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\/\">membership page<\/a>.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1668491973039\"><strong class=\"schema-faq-question\"><strong>Why does the GDPR restrict artificial intelligence in this way?<\/strong><\/strong> <p class=\"schema-faq-answer\">Because there is a belief that human oversight is necessary when decisions seriously impact an individual&#8217;s life.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1668491986768\"><strong class=\"schema-faq-question\"><strong>Would an automatic system with a human review at the end meet GDPR rules?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, as long as the human review was genuine and that person had the ability and power to overturn the system rather than simply carrying out the automatic decision.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"29d45c3efd\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/178355\" \/>            <input value=\"https:\/\/legalvision.co.uk\/data-privacy-it\/automated-decision-gdpr\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Does the GDPR Allow My Business to Use Automated Decision Making in the UK?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The introduction of the General Data Protection Regulation caused businesses in the UK to rethink how they handled personal information. However, due to media attention mainly focusing on the ability of the Information Commissioner&#8217;s Office (ICO) to fine organisations up to \u00a317.5m, some businesses remain unaware of the more technical parts of the UK GDPR.<a href=\"https:\/\/legalvision.co.uk\/data-privacy-it\/automated-decision-gdpr\/\">Continue reading <span class=\"sr-only\">&#8220;Does the GDPR Allow My Business to Use Automated Decision Making in the UK?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13349,"featured_media":3213,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1619,176348,176718,172994,4378,172119","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[27],"tags":[20,21,365,642],"class_list":["post-178355","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-data-privacy-it","tag-small-business","tag-medium-business","tag-gdpr","tag-gdpr-complicance"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Is Automated Decision Making GDPR Compliant? 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He has particular expertise in Commercial and Employment litigation, as well as data protection and privacy regulations. He is a qualified Solicitor in England and Wales and has a decade of legal experience, including advocacy within civil courts and Tribunals. Tom specialises in civil and employment litigation. He has extensive experience in advising employers and companies as to the requirements of employment law and data protection rules, as well as day-to-day advice on smooth running from a commercial perspective. 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