Record GDPR fine by the Hungarian Data Protection Authority for the unlawful use of AI
This case involved the processing of personal data by a bank that acted as a data controller. The controller automatically analyzed recorded audio of costumer calls. It used the results of the analysis to determine which customers should be called back by analyzing the emotional state of the caller using an artificial intelligence-based speech signal processing software that automatically analyzed the call based on a list of keywords and the emotional state of the caller. The software then established a ranking of the calls serving as a recommendation as to which caller should be called back as a priority.
The bank justified the processing on the basis of its legitimate interests in retaining its customers and improving the efficiency of its internal operations.
According to the bank this procedure aimed at quality control, in particular at the prevention of customer complaints. However, the Authority held that the bank’s privacy notice referred to these processing activities in general terms only, and no material information was made available regarding the voice analysis itself. Furthermore, the privacy notice only indicated quality control and complaint prevention as purposes of the data processing.
In addition, the Authority highlighted that while the Bank had conducted a data protection impact assessment and found that the processing posed a high risk to data subjects due to its ability to profile and perform assessments, the data protection impact assessment did not provide substantive solutions to address these risks. The Authority also emphasized that the legal basis of legitimate interest cannot serve as a “last resort” when all other legal bases are inapplicable, and therefore data controllers cannot rely on this legal basis at any time and for any reason. Consequently, the Authority not only imposed a record fine, but also required the bank to stop analyzing emotions in the context of speech analysis.
