Clarifying High-Risk Data Processing in AI Governance - Business Law Review View Clarifying High-Risk Data Processing in AI Governance by - Business Law Review Clarifying High-Risk Data Processing in AI Governance 46 5

The growing integration of artificial intelligence across sectors such as finance, healthcare and customer service has raised global concerns about data privacy and security. AI-driven organizations routinely engage in complex data processing activities that can significantly impact the rights and freedoms of data subjects, particularly in jurisdictions with emerging data protection frameworks. While international data protection instruments emphasize the importance of Data Protection Impact Assessments (DPIAs) for high-risk processing, many countries, including Nigeria, India and Brazil, struggle to clearly define what constitutes ‘high-risk’ processing or to provide actionable guidance for AI applications. This paper examines this regulatory gap, comparing it with approaches in the United Kingdom (UK) and Hong Kong, where clear regulatory guidelines have been issued. It argues that the absence of explicit classifications and mandatory DPIA requirements for AI-related processing hinders compliance and weakens the protection of data subject rights. The paper recommends that jurisdictions with these gaps issue regulatory guidance explicitly designating AI-related processing as high-risk and mandating DPIAs.

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