Description: Hungary's data-protection authority found Budapest Bank's AI analysis of recorded customer-service calls violated callers' and employees' privacy rights. The system analyzed emotions and helped select callbacks and assess staff without a lawful basis or adequate notice and objection safeguards. The authority ordered an end to emotion analysis and imposed a HUF 250 million fine.
Editor Notes: 05/26/2017: Bank-reported implementation date, used as the onset proxy for the prolonged deployment. From 05/25/2018: Processing period examined under GDPR. 09/2021: NAIH launched proceedings. 02/08/2022: NAIH ordered changes and imposed a HUF 250 million fine. 04/05/2022: Telex reported the case. 10/22/2026: Incident ID created.
Entities
View all entitiesAlleged: AI-assisted call center software developers developed an AI system deployed by Budapest Bank and Banks, which harmed Budapest Bank callers , Bank customers , Budapest Bank customers , Budapest Bank call center employees , Call center workers , Privacy and Biometric data subjects.
Alleged implicated AI systems: AI-assisted call center software , Emotion recognition systems and Enterprise AI systems
Incident Stats
Incident ID
1780
Report Count
2
Incident Date
2017-05-26
Editors
Daniel Atherton
Incident Reports
Reports Timeline
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Hungarian National Authority for Data Protection and Freedom of Information, Nemzeti Adatvédelmi és Információszabadság Hatóság, Attila Péterfalvi post-incident response
AIID editor's note: This is an AI-assisted abridged conversion of the supplied 35-page English decision, whose extracted text exceeds 50,000 characters. It retains the opening decision and operative orders, the compliance paragraph, paragra…
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The NAIH has imposed a record fine, which was made public in its annual report published at the end of March, Deloitte said in a statement. In addition to being the highest data protection fine ever, it is also the first to be imposed for t…
Variants
A "variant" is an AI incident similar to a known case—it has the same causes, harms, and AI system. Instead of listing it separately, we group it under the first reported incident. Unlike other incidents, variants do not need to have been reported outside the AIID. Learn more from the research paper.
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