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AI Phone Assistant

AI Telephone Assistant and GDPR: What Businesses Need to Consider Legally

Published on
Reading time3 min
In short

An AI telephone assistant processes personal data as soon as it takes calls. The key factors are a legal basis, transparency toward callers, a data processing agreement, and the question of where the data is processed.

As soon as an AI telephone assistant takes calls, it processes personal data – at minimum the phone number and the content of the conversation. This means the GDPR applies in full. The four points that determine admissibility in practice: legal basis, transparency, data processing agreement, and place of processing.

1. Clarify legal basis

For handling a matter raised by the caller themselves, the initiation or performance of a contract is usually relevant, supplemented by the legitimate interest in efficient accessibility. If, however, the conversation is recorded, stricter requirements apply – recording without consent is generally impermissible.

In practical terms, this means: an assistant that structurally logs the request, rather than storing the recording, is much easier to operate from a data protection perspective.

2. Transparency toward callers

Callers must be able to recognize that they are speaking with an automated system. This follows both from the GDPR’s transparency principle and from the labeling requirements for AI systems. A clear notice at the start of the call is the simplest approach – and, in practice, not an acceptance issue as long as the system then works reliably.

  • Notice at the start of the conversation that a digital assistant is responding
  • Option to reach a human at any time
  • Add privacy notices on the website, including purpose and storage duration

3. Data Processing Agreement

If the assistant is operated via a service provider, a Data Processing Agreement (DPA)required under Art. 28 GDPR. It regulates the purpose, scope, technical and organizational measures, as well as possible sub-processors. Without a DPA, use is not compliant.

4. Where are the data processed?

The place of processing is the point at which offers differ most clearly. Processing within the EU avoids the additional requirements for transfers to third countries. If a model is operated outside the EU, a valid transfer basis and a case-by-case review are required.

A practical rule of thumb: the less data the system stores at all, and the shorter the retention period, the easier the overall setup. Data minimization is not only a legal requirement here, but also reduces effort.

Practical example: review sequence before implementation

A typical approach: First, it is determined which data the assistant actually needs to perform its task – usually name, callback number, and reason for the call. Anything beyond that is omitted. Then the retention period and deletion concept are defined, the data processing agreement is concluded, and the privacy notices are updated. Only then does the system go into test operation.

Frequently asked questions about AI phone assistants and the GDPR

Do I have to inform callers that an AI is answering?

Yes. Callers must be able to recognize that they are speaking with an automated system. A brief notice at the start of the call is sufficient, along with the option to be transferred to a human.

May the assistant record calls?

Only with the effective consent of the callers. It is much easier to use an assistant that structures and logs the request instead of storing the recording — then the issue does not arise in this form.

Do I need a data processing agreement?

Yes, as soon as a service provider processes the data on your behalf. The DPA under Art. 28 GDPR is a prerequisite for compliant operation.

Does the processing have to take place in the EU?

It is not mandatory, but it makes things much easier because the additional requirements for transfers to third countries no longer apply. We therefore explicitly define the place of processing before implementation.

Next step

How the assistant works in practice is shown on the product page AI telephone assistant. We clarify data protection issues as part of the implementation – the ones covered by INQA-Coachingup to 80% eligible for funding.

Status: September 2026. This article is intended as general guidance and does not replace legal advice in individual cases.

Portrait von Muhamed Alahmed, Gründer von bettersorted
About the author

Muhamed Alahmed

With over 10 years’ experience in IT, I develop solutions that not only work from a technical perspective, but also create real added value and open up new possibilities.

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