In June 2024, the EU AI Act came into force. The AI Act includes obligations for the provider of an AI system. Article 10 of the AI Act includes a new obligation for providers to evaluate whether their training, validation and testing datasets meet certain quality criteria, including an appropriate examination of biases in the datasets and correction measures. With the obligation comes a new provision in Article 10(5) AI Act, allowing providers to collect sensitive data to fulfil the obligation. Article 10(5) AI Act aims to prevent discrimination. In this paper, I investigate the scope and implications of Article 10(5) AI Act. The paper primarily concerns European Union law, but may be relevant in other parts of the world, as policymakers aim to regulate biases in AI systems.

Organisations can use artificial intelligence to make decisions about people for a variety of reasons, for instance, to select the best candidates from many job applications. However, AI systems can have discriminatory effects when used for decision-making. To illustrate, an AI system could reject applications of people with a certain ethnicity, while the organisation did not plan such ethnicity discrimination. But in Europe, an organisation runs into a problem when it wants to assess whether its AI system accidentally discriminates based on ethnicity: the organisation may not know the applicants’ ethnicity. In principle, the GDPR bans the use of certain ‘special categories of data’ (sometimes called ‘sensitive data’), which include data on ethnicity, religion, and sexual preference. The proposal for an AI Act of the European Commission includes a provision that would enable organisations to use special categories of data for auditing their AI systems. This paper asks whether the GDPR's rules on special categories of personal data hinder the prevention of AI-driven discrimination. We argue that the GDPR does prohibit such use of special category data in many circumstances. We also map out the arguments for and against creating an exception to the GDPR's ban on using special categories of personal data, to enable preventing discrimination by AI systems. The paper discusses European law, but the paper can be relevant outside Europe too, as many policymakers in the world grapple with the tension between privacy and non-discrimination policy.