AIGP Study Guide
Module 6: Governing AI Development · BoK III.A

Impact Assessments in the Design Phase

An impact assessment is a risk management tool assessing an AI system's benefits, risks and limitations across the life cycle. The AIA covers data issues; a DPIA tackles personal-data risk; a PIA confirms PII handling complies.

An Impact assessment is a risk management tool assessing an AI system's benefits, risks and limitations across the life cycle. Perform or review one at design time.

Three assessments in the design phase
AssessmentWhat it does
Algorithmic IA (AIA)Covers the data issues and documents the stakeholder group's decisions - risk identification and mitigation, and who approves and accepts risk on the organisation's behalf. The Government of Canada publishes an AIA tool.
DPIAA means to identify risks coming out of the processing of personal data and minimise them as much as possible.
PIAAn analysis of how personally identifiable information is handled - confirms handling conforms to applicable privacy requirements.
Adapt, don't reuse blindly

Build off existing DPIAs and PIAs where possible → but their limitation is that they are not tailored specifically for AI applicationsidentify the gaps between existing processes and a comprehensive algorithmic impact assessment. Consider a PIA on the underlying training data, add a DPIA since a PIA won't cover everything an AI governance document needs, and adapt existing assessments to the AI project.

Key terms - quick answers

What is “Impact assessment”?
A risk management tool assessing an AI system's benefits, risks and limitations across the life cycle.
What is “Algorithmic Impact Assessment (AIA)”?
Assessment covering data issues and documenting the stakeholder group's decisions and who accepts risk; Canada publishes an AIA tool.
What is “DPIA”?
Data Protection Impact Assessment - identifies and minimises risks from processing personal data.
What is “PIA”?
Privacy Impact Assessment - analyses how personally identifiable information is handled and confirms privacy compliance.