Anonymisation, Pseudonymisation and PETs
Recital 26 territory: anonymisation removes data from the GDPR entirely, while pseudonymisation is still personal information so GDPR obligations apply. The scraping problem and three privacy-enhancing technologies - differential privacy, homomorphic encryption and secure multi-party computation - shape AI data strategy.
Recital 26 territory. One takes data out of the GDPR entirely, the other does not. Know which is which cold.
| Anonymisation | Pseudonymisation | |
|---|---|---|
| GDPR status | GDPR does not apply → no longer personal information | Still personal information → GDPR obligations apply |
| Notes | Threshold varies by jurisdiction and is high under the GDPR → AI benefit is processing vast datasets | Helpful for protection → but deidentification drops data utility for AI |
Training datasets are gathered by scraping digital content (social media, articles, blogs) → much of it personal information, often collected without end-user knowledge, engagement or consent, at petabyte scale. User prompts and interests feed back into improving systems → a live conflict. Because current legislation was built without AI in mind, there are open questions whether AI can truly rely on pseudonymous or anonymised data. At scale → privacy and security controls must be dynamic enough to change with the AI system, and the ideal outcome is making systems succeed without using personal information at all.
Privacy-enhancing technologies:
- Differential privacy → needed because of the utility drop, so inquiries must be limited.
- Homomorphic encryption → not at scale yet.
- Secure multi-party computation → targeted pockets of use; fine for simple arithmetic, compute-intensive for multiplication and division.
Always weigh the trade-offs between privacy benefits and operational costs → performance, scalability, complexity.
Key terms - quick answers
What is “Anonymisation”?
What is “Pseudonymisation”?
What is “Scraping problem”?
What is “Differential privacy”?
Sources and study method
This independent lesson uses active recall, spaced retrieval and scenario practice. Read the full study method.