Automated decision-making system
Systems that process data to make predictions, recommendations, or decisions.
How the laws define this
Regulators consistently treat an automated decision-making system as technology that processes data to generate decisions, recommendations, or predictions affecting individuals, whether fully automated or involving human oversight. These frameworks share a core emphasis on transparency and human oversight requirements. The primary point of divergence lies in the underlying technical trigger and the scope of affected entities. Draft Bill No. 14 on Artificial Intelligence Regulation broadly applies to any system processing data algorithmically, whereas the Puerto Rico Government AI Act (Senate Bill 68) requires the use of artificial intelligence specifically. Additionally, while Draft Bill No. 14 restricts its scope to impacts on individuals, the Puerto Rico Government AI Act explicitly extends coverage to systems affecting government processes. The guidance concerning algorithmic discrimination broadly encompasses algorithms, machine learning, or artificial intelligence while noting deployment across finance, employment, and public services.
Synthesised from the 3 statutory definitions below. Each one is quoted in full, with its source.
How jurisdictions differ
What is distinctive in each definition, binding law in force first.
| Jurisdiction | Instrument | Status | What is distinctive |
|---|---|---|---|
| Puerto Rico, United States | Puerto Rico Government AI Act (Senate Bill 68) | Proposed | Explicitly limits to systems using artificial intelligence and specifies impacts on individuals or government processes, with emphasis on transparency, oversight, and ethics. |
| Panama | Draft Bill No. 14 on Artificial Intelligence Regulation | Under Review | Includes systems with human oversight and explicitly subjects them to transparency, accountability, and human-oversight requirements. |
| Washington, United States | Concerning algorithmic discrimination | Withdrawn | Highlights use of algorithms, machine learning, or AI across sectors like finance, employment, and public services, with varying human oversight. |
Definitions (3)
An automated decision-making system is any system that processes data algorithmically to generate predictions, recommendations, or decisions affecting individuals, whether fully automated or involving human oversight. The draft bill treats such systems as subject to transparency, accountability, and human-oversight requirements.
An automated decision-making system is a technological application that employs algorithms, machine learning, or artificial intelligence to process data and generate decisions, recommendations, or predictions. These systems operate with varying degrees of human oversight and are increasingly used across various sectors, including finance, employment, and public services.
Systems that use artificial intelligence to make or assist in making decisions that affect individuals or government processes. The Puerto Rico Government AI Act (Senate Bill 68) emphasizes the need for transparency, human oversight, and ethical safeguards in the deployment of such systems.
Not to be confused with
Automated decision-making with legal or similarly significant effects narrows to decisions altering legal status or similar interests, unlike the broader scope here.
Automated decision tool focuses on systems making or significantly influencing consequential decisions, compared to the wider data-processing predictions or recommendations here.
Automated decision system (ADS) specifies use for administrative decisions, whereas these definitions cover broader applications including private sectors.
Questions and answers
Does human oversight affect classification as an automated decision-making system?
Panama's draft bill explicitly includes systems with human oversight. Washington's definition notes varying degrees of human oversight. Puerto Rico focuses on AI systems affecting individuals or government.
What sectors are covered by these automated decision-making definitions?
Washington's definition mentions finance, employment, and public services. Puerto Rico targets government processes. Panama and others apply more broadly without sector limits.
Related Terms
Automated Decision‑Making Systems
Systems that make or assist in making decisions using AI....
Automated decision making with legal or similarly significant effects
Automated decisions altering legal status or similarly significant interests....
Automated decision tool
System that makes or significantly influences consequential decisions....
Automated decisions
Decisions produced by algorithms without direct human involvement....
Automated decision system (ADS)
Any system used to make, assist, or inform administrative decisions....