DPIAs are no longer optional for significant data fiduciaries under DPDPA. We break down when you need one, what it should cover, and how AI can streamline the process.
A Data Protection Impact Assessment (DPIA) is a systematic evaluation of how a data processing activity affects the privacy rights of individuals. Under DPDPA, Significant Data Fiduciaries are required to conduct DPIAs for processing activities that carry high privacy risk. But even if your organisation does not yet fall into this category, conducting DPIAs proactively is a best practice that can prevent costly compliance gaps.
When Is a DPIA Required?
DPIAs should be conducted before launching any new product, service, or process that involves personal data processing. This includes introducing new technology like AI or machine learning systems, processing sensitive personal data at scale, automated decision-making that significantly affects individuals, and large-scale monitoring of public areas. The key question is whether the processing could result in high risk to individuals' rights and freedoms.
What a Good DPIA Covers
An effective DPIA documents the nature, scope, and purpose of the processing, assesses the necessity and proportionality of the processing relative to its purpose, identifies and evaluates risks to data principals, and defines measures to mitigate those risks. It should also include stakeholder consultations and a clear plan for ongoing monitoring.
Streamlining with AI
Traditional DPIAs are time-intensive, often requiring weeks of manual data gathering and analysis. AI-powered DPIA tools can automate much of this process: scanning systems to map data flows, identifying processing activities that trigger assessment requirements, generating risk scores based on the type and volume of data involved, and producing structured reports ready for regulatory review. This automation turns DPIAs from a compliance burden into a continuous risk management tool.
