Automated decision
Also known as: solely automated decision · profiling · algorithmic decision
An automated decision is a decision producing an effect on a person and taken without meaningful human involvement.
The operative word is "meaningful". A human who clicks to approve whatever the system proposes, with neither the authority nor the competence to contradict it, does not make the decision non-automated: the oversight has to be real.
Several regimes then grant rights: being told the decision was taken that way, knowing the main factors behind it, and asking that a person review it.
The typical field is hiring, credit, insurance, pricing and moderation — anywhere the outcome affects someone's rights or interests.
What it means for a small business
An AI agent screening applications or setting per-customer prices falls in scope, even if the company sees itself as merely using a tool it bought.
Related terms
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Updated September 1, 2026 · Educational definition; not legal advice.