The Data (Use and Access) Act 2025 increases the circumstances where organisations can make decisions that have legal or similarly significant effects on individuals based solely on automated processing (automated decision-making).
This change reflects the uptake in AI-driven decision making in recent years and is intended to promote innovation whilst preserving protection for individuals.
Previously, all automated decision-making was restricted unless it was necessary for the purposes of a contract with the individual, permitted by UK law or the individual had provided their consent. However, these restrictions have been removed for any automated decision-making which is not based on special category data.
This allows organisations to use automated decision-making, provided that they have a lawful basis for the processing and implement the following mandatory safeguards:
- Inform impacted individuals about the automated decision
- Provide individuals with the opportunity to make representations about or challenge the automated decision
- Offer meaningful human intervention in relation to the automated decision
Additional restrictions remain if the automated decision-making is based on more sensitive, special category data. This is only permitted if:
- The individual has provided explicit consent.
- The decision is necessary for the purposes of a contract with the individual or permitted by law, and the processing is necessary for reasons of substantial public interest on the basis of relevant law that includes suitable safeguards.