Definition
Any process where software — including AI — makes or heavily influences a consequential decision about a person (such as suspending an account or denying a loan) with little or no meaningful human review. Data protection laws like GDPR give individuals specific rights when they're subject to this kind of decision, including a right to explanation and human review.
Why it matters
A €825 million fine against Uber for using automated systems to deactivate drivers' accounts shows regulators are now willing to impose historic penalties when AI-driven decisions affect people's livelihoods without adequate human oversight.