GDPR compliance in AI refers to the design and operation of artificial intelligence systems in a way that fully respects the principles of the EU General Data Protection Regulation, particularly transparency, data minimization, user consent, security, and the right to audit or delete personal data. For finance teams, where sensitive information flows through invoices, contracts, payroll documents, bank statements, and internal records, GDPR compliance is not an optional layer but a structural requirement.
An AI system is considered GDPR-compliant only if it provides:
- Explicit control over data sources and retention: no hidden storage, full visibility into where data goes.
- Human oversight: ensuring decisions are supervised, correctable, and accountable.
- Purpose limitation: the AI processes data strictly for the workflow defined by the organisation.
- Strong security measures: encryption, access control, auditability, and isolation of customer data.
- Traceability: the ability to show how outputs were generated (crucial during audits or regulatory reviews).
In many legacy automation tools, these principles are difficult to guarantee because rules and processes are opaque, internal logs are limited, or data flows through third-party services without clear visibility. This creates operational and regulatory risk.
Phacet takes a fundamentally different approach: every agent is built with human-in-the-loop supervision, full audit trails, and transparent extraction and matching logic. Data processed through the platform remains under the customer’s control, stored securely in an ISO 27001–certified AWS infrastructure, and never repurposed or used for model training without consent. Each extraction or classification is traceable back to its exact source, ensuring compliance and simplifying collaboration with auditors or DPOs.
For organisations scaling AI across finance and administrative workflows, GDPR compliance isn’t just about avoiding penalties, it’s what enables AI deployment with confidence and durability.
To explore how Phacet applies secure, compliant AI to financial workflows, see the product overview, which details supervision, governance, and security safeguards built into every agent.
