An Algorithmic Impact Assessment (AIA) is a mandatory, ex-ante due diligence process required by the EU AI Act for deployers—particularly public authorities and bodies—to systematically identify, evaluate, and mitigate the potential impacts and risks to fundamental rights before putting a high-risk AI system into operational use.

This assessment shifts the burden of proactive risk management onto the organization that wields the AI system's power. While the provider ensures the system is built compliantly, the AIA ensures it is used responsibly within a specific context. It is a practical tool for deployers to scrutinize how a system will interact with their unique operational environment, data, and the individuals it will affect. The process forces a consideration of trade-offs, necessity, and proportionality, ensuring that the deployment of AI is justified and that adequate human oversight and redress mechanisms are in place.

A comprehensive AIA under the EU AI Act framework should address several critical areas:

Deployment Context & Necessity: Documenting the specific problem the AI system aims to solve, evaluating whether its use is proportionate and necessary, and considering less intrusive alternatives.

Fundamental Rights Scrutiny: Analyzing the system's potential impact on rights such as non-discrimination, privacy, freedom of expression, and assembly, with a focus on vulnerable groups.

Data & Operational Risk Analysis: Assessing the suitability and quality of the deployer's own data that will feed the system and identifying contextual risks specific to the deployment environment.

Mitigation & Governance Plan: Outlining the concrete technical and organizational measures that will be implemented to manage identified risks, including human oversight protocols, staff training, and procedures for handling complaints and incorrect decisions.

Regulatory Context: The EU AI Act mandates a "Fundamental Rights Impact Assessment" (FRIA) in Article 27 for public deployers and private deployers acting as public authorities when using high-risk AI systems for law enforcement, migration, or the administration of justice. This is a specific, legally codified type of AIA. The broader concept aligns with the "Map" and "Measure" functions of the NIST AI RMF.

Governance & Public Trust: Conducting a rigorous AIA is a critical demonstration of responsible governance. For public bodies, it fosters democratic accountability and transparency. For all deployers, it serves as a vital internal safeguard, helping to prevent costly operational failures, legal challenges, and reputational damage by "looking before you leap" into AI deployment.

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