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What data privacy risks come with using AI tools on customer data?
The main risks are exposing personal data to a third party, data being retained or used to train models, unauthorised cross-border transfers, and inability to honour deletion or access requests. You may also create decisions about people that are unfair or unexplainable. These can breach privacy laws and customer trust.
Before using any AI tool with personal data, check:
- Who processes the data and where.
- Whether inputs are stored or used for training.
- The legal basis and purpose for processing under laws such as GDPR or POPIA.
- Whether a data processing agreement is in place.
- Whether you can minimise or anonymise the data.
Where possible, keep data inside your own controlled environment and share only what the task actually needs. Seek legal advice for specific obligations.
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