• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Techthe future of work

AI Has a Big Privacy Problem and Europe’s New Data Protection Law Is About to Expose It

By
David Meyer
David Meyer
Down Arrow Button Icon
By
David Meyer
David Meyer
Down Arrow Button Icon
May 25, 2018, 6:52 AM ET

“Artificial intelligence” technology is on a roll these days, but it’s about to hit a major blockage: Europe’s new General Data Protection Regulation (GDPR).

The privacy law, which came into effect across the EU on Friday, has several elements that will make life very difficult for companies building machine learning systems, according to a leading Internet law academic.

“Big data is completely opposed to the basis of data protection,” said Lilian Edwards, a law professor at the University of Strathclyde in Glasgow, Scotland. “I think people have been very glib about saying we can make the two reconcilable, because it’s very difficult.”

Here’s the issue. Machine learning—the basis of what we call AI—involves algorithms that progressively improve themselves. They do this by feasting on data. The more they consume, the better they get at spotting patterns: speech patterns that make it easier for a bot to sound like a human; visual patterns that help an autonomous car system recognize objects on the road; customer behavior patterns that train a bank’s AI systems to better spot fraud.

All the while, the algorithms evolve themselves beyond the understanding of the people who created them, and the data gets combined with other data in new and mysterious ways.

Now let’s go over to the GDPR, which says:

  • When they collect personal data, companies have to say what it will be used for, and not use it for anything else.
  • Companies are supposed to minimize the amount of data they collect and keep, limiting it to what is strictly necessary for those purposes—they’re supposed to put limits on how long they hold that data, too.
  • Companies have to be able to tell people what data they hold on them, and what’s being done with it.
  • Companies should be able to alter or get rid of people’s personal data if requested.
  • If personal data is used to make automated decisions about people, companies must be able to explain the logic behind the decision-making process.

See the problem?

“Big data challenges purpose limitation, data minimization and data retention–most people never get rid of it with big data,” said Edwards. “It challenges transparency and the notion of consent, since you can’t consent lawfully without knowing to what purposes you’re consenting… Algorithmic transparency means you can see how the decision is reached, but you can’t with [machine-learning] systems because it’s not rule-based software.”

According to the professor, the issue becomes even more fraught where companies use people’s data to infer things about them—sensitive personal data, which includes things like sexuality and political and religious beliefs, gets even stronger protections under the GDPR.

Normally, the GDPR gives companies other legal justifications that they can use to process people’s data, such as the need to use that data in order to provide core services. But where this kind of sensitive data is concerned, people have to give their explicit consent to its processing.

“That ‘get out of jail free’ card goes if it’s sensitive data. The other way people try and get out of it is to say, ‘We’re not processing personal data because we’re anonymizing it,'” said Edwards. “But if you take enough big data and combine it with other bits of big data, you can re-identify almost everybody. It doesn’t fit the definition of anonymized data in the GDPR. The definition now is if you can single people out with the data you have, then you have personal data.”

And if your machine-learning systems are full of personal data, then under the GDPR it must be possible to pull that information out of the mix, alter it, limit what’s done with it, and explain how the system works.

“To be fair I am working with people who are trying to produce explainable systems, but at the moment it’s still very academic,” Edwards added.

About the Author
By David Meyer
LinkedIn icon
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

How AI will make your Shake Shack order even faster
NewslettersCIO Intelligence
How AI will make your Shake Shack order even faster
By John KellApril 1, 2026
10 minutes ago
One humanoid robot handing shaking hands with another humanoid robotic hand. One robot on the left is lighter metal colored than the one on the right.
AIAI agents
AI models will secretly scheme to protect other AI models from being shut down, researchers find
By Jeremy KahnApril 1, 2026
28 minutes ago
receipts
EconomyFederal Reserve
‘Inflationary surge’: Fed economists warn AI hype is overheating the economy whether or not the technology ever delivers
By Jake AngeloApril 1, 2026
1 hour ago
AI
AIProductivity
AI is saving workers up to an hour a day — but Goldman Sachs says 80% of companies aren’t using it yet
By Nick LichtenbergApril 1, 2026
2 hours ago
Nvidia CEO Jensen Huang
SuccessJobs
Nvidia CEO Jensen Huang’s advice to workers scared of AI: You’re just confusing your job with the tools you use to do it
By Emma BurleighApril 1, 2026
2 hours ago
Five hard lessons from Allbirds’ 99% stock plunge and $39 million fire sale
Retailchief executive officer (CEO)
Five hard lessons from Allbirds’ 99% stock plunge and $39 million fire sale
By Phil WahbaApril 1, 2026
2 hours ago

Most Popular

Jerome Powell says the $39 trillion national debt is ‘not unsustainable,’ but warns the trajectory ‘will not end well’
Economy
Jerome Powell says the $39 trillion national debt is ‘not unsustainable,’ but warns the trajectory ‘will not end well’
By Fortune EditorsMarch 30, 2026
2 days ago
Markets cheer as Trump threatens to abandon Iran war, but Jamie Dimon sides with allies: ‘Win this thing and clean up the straits’
Energy
Markets cheer as Trump threatens to abandon Iran war, but Jamie Dimon sides with allies: ‘Win this thing and clean up the straits’
By Fortune EditorsMarch 31, 2026
1 day ago
A man used AI to call 3,000 Irish bartenders to track the cost of Guinness. Now pubs are lowering their prices to compete
AI
A man used AI to call 3,000 Irish bartenders to track the cost of Guinness. Now pubs are lowering their prices to compete
By Fortune EditorsMarch 30, 2026
2 days ago
Kevin O'Leary says if you earn $68,000 a year and follow this rule, you'll retire a millionaire
Personal Finance
Kevin O'Leary says if you earn $68,000 a year and follow this rule, you'll retire a millionaire
By Fortune EditorsMarch 31, 2026
1 day ago
Two-thirds of parents say their adult Gen Z kids still rely on them financially  for support—even though it's putting them under strain
Success
Two-thirds of parents say their adult Gen Z kids still rely on them financially  for support—even though it's putting them under strain
By Fortune EditorsMarch 31, 2026
1 day ago
Hiring just hit a level not seen since the economy was ‘closed down literally’ during COVID, top economist says
Economy
Hiring just hit a level not seen since the economy was ‘closed down literally’ during COVID, top economist says
By Fortune EditorsMarch 31, 2026
23 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.