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Data Protection Impact Assessment (DPIA)

Compliance Β· 8 min Β· Updated: March 2026

A Data Protection Impact Assessment (DPIA) is required under Art. 35 GDPR when data processing is likely to result in a high risk to the rights and freedoms of natural persons. This is frequently the case with AI systems.

When is a DPIA required?

  • Automated individual decision-making with legal effects (Art. 22 GDPR)
  • Large-scale processing of special categories of personal data
  • Systematic monitoring of publicly accessible areas
  • Profiling with significant effects on data subjects
  • New technologies (AI systems qualify as new technology)
DPIA Process in 6 Steps β€” illustration from the German article

DPIA Process in 6 Steps

  1. 1. Describe the processing β€” What data, what purpose, what legal basis, what recipients?
  2. 2. Assess necessity and proportionality β€” Is the processing necessary? Are there less intrusive alternatives?
  3. 3. Evaluate risks to data subjects β€” Likelihood and severity of potential harm.
  4. 4. Define mitigation measures β€” Technical and organizational measures, pseudonymization, access controls.
  5. 5. Create documentation β€” Record findings, measures, and residual risks.
  6. 6. Review regularly β€” A DPIA is not a one-time document β€” update when the system changes.
DPIA and EU AI Act β€” illustration from the German article

DPIA and EU AI Act

The EU AI Act supplements the GDPR DPIA with AI-specific requirements:

  • High-risk AI systems require a DPIA plus an AI-specific risk assessment
  • Art. 27 EU AI Act requires a fundamental rights impact assessment for certain deployers
  • The DPIA can be combined with the AI risk assessment

Self-Hosted AI Advantage

With self-hosted AI (e.g., Ollama locally), the DPIA is significantly simpler: no third-country transfers, no data processing agreements needed, full control over data. Residual risk is lower than with cloud AI.

Further Reading

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