Automated decision-making is allowed under GDPR if it is necessary for what purpose?

Under the General Data Protection Regulation (GDPR), automated decision-making is permissible when it is necessary for entering into or performing a contract. This provision ensures that individuals can engage in automated processes that are essential for the execution of agreements, thereby facilitating efficiency and speed in transactions.

For example, if an individual applies for a loan online, an automated system may assess their creditworthiness based on predefined criteria necessary for the bank to make a lending decision. This aligns with the GDPR's intent to balance the benefits of automation with safeguarding individual rights.

In contrast, options related to developing AI technologies, gathering comprehensive user data, or merely improving algorithm performance do not directly link to the conditions outlined in the GDPR that justify automated decision-making. While these activities are significant in the broader context of data processing and AI development, they do not constitute necessary purposes under the regulation for automated decision-making to be lawful.