Automated Decision-Making

The process of making decisions about individuals using solely automated means, without human involvement. This includes using algorithms, artificial intelligence, or predefined rules to make decisions that produce legal effects or similarly significant impacts on people. Examples include automated credit scoring, automated job applicant screening, or algorithmic insurance pricing. The key concern is that automated systems can make consequential decisions quickly and at scale, potentially perpetuating biases or making errors without human judgment to catch problems. GDPR Article 22 gives individuals the right not to be subject to solely automated decisions with significant effects unless certain conditions are met—such as necessity for contract performance, legal authorization, or explicit consent. When you do use automated decision-making, you must implement safeguards, provide meaningful information about the logic involved, and usually offer ways for individuals to contest decisions.