Artificial Intelligence, Profiling and Automated Decision Making
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Are there any restrictions or requirements related to creating profiles of data subjects or utilizing automated decision-making for decisions related to data subjects, including with respect to artificial intelligence?

Last review date: January 24, 2025

Yes.

The restrictions or requirements are as follows:

☒        right to information / transparency requirement

☒        other

In accordance with the Privacy Law, a person shall not manage or possess a database used for "direct-mailing services", unless: (i) it is registered in the Registrar and one of its registered purposes is mailing services; and (ii) it has a record indicating the source from which it collected data used for the database, the date it was received, and the recipient of the data to whom each said collection.

In this context, "direct mailing" means contacting a person personally, based on them belonging to a group of the population that is determined by one or more characteristics of persons whose names are included in a database and "direct-mailing services" means providing direct-mailing services to others by way of transferring lists, labels or data by any means.

In addition, as stated above, according to the guidelines issued by the PPA regarding notification obligation within the context of collection and use of personal data, where automated systems are used for the processing of personal data, the PPA recommends that the privacy notice will also include description of such systems, the way they operate and the source of data processed by such systems.

If such restrictions or requirements exist, are they subject to any exceptions?

Last review date: January 24, 2025

Yes.

The exceptions are as follows:

The rules provided above with respect to direct mailing and direct mailing services do not apply to a public body within the meaning of the Privacy Law in carrying out its functions under law.

Has the data privacy regulator issued guidance on data privacy and artificial intelligence, automated decision-making or profiling?

Last review date: January 24, 2025

Yes.

If yes, please provide brief details and a link.

The PPA's Guidelines (2/2017) on Direct Mailing and Direct Mailing Services, available here (in Hebrew only) (English summary available here) – see above for further details.

The PPA's opinion dated July 18, 2022 titled: "the duty to notify of collection and use of personal data" (available here in Hebrew) – see above for further details.

Has the data privacy regulator taken enforcement action in relation to artificial intelligence, including automated decision-making or profiling?

Last review date: January 24, 2025

         No enforcement activity to date

Do other (non-personal data or cybersecurity) laws or regulations impose restrictions on use of artificial intelligence, automated decision-making or profiling?

Last review date: January 24, 2025

        Proposal for legislation or regulation at an early stage

☒        Non-binding guidance or principles issued or in progress

In October 2024, the Inter-Ministerial Team for Examining the Use of Artificial Intelligence (AI) in the Financial Sector released an interim report for public comments (see link in Hebrew) outlining recommendations for AI regulation. Comprising representatives from the Ministries of Justice and Finance and various financial regulators, the team aims to address the anticipated transformative impact of AI in financial services. The report emphasizes AI's potential to enhance service efficiency, accessibility, and cost-effectiveness while tackling critical concerns such as privacy, fairness, and transparency. Key recommendations include adopting risk-based regulation, ensuring AI explainability, maintaining human oversight for high-risk applications, disclosing AI interactions to users, enhancing fraud prevention, protecting privacy through robust measures, and establishing governance and accountability frameworks to mitigate discrimination and competition risks.

On 14 December 2023, the Ministry of Innovation, Science and Technology and the Consulting and Legislation Department ("Economic Law") at the Ministry of Justice published a policy document outlining principles on regulation and ethics for the development and use of artificial intelligence-based systems in Israel (see here in Hebrew). The PPA participated in the formulation of the policy document.

The document aims to serve as a moral and business-oriented compass for anybody involved in the field of artificial intelligence. The main policy principles proposed in the document are the use of soft regulatory tools instead of lateral framework legislation, the adoption of ethical principles similar to what is acceptable around the world, the formation of a risk management tool for the regulator and the establishment of a dedicated knowledge center within the government.