AI chatbots and the GDPR: Everything important about data protection in AI-based customer service
The use of AI in customer service promises enormous efficiency gains, but it also raises critical questions regarding data protection. In this article, we explain why the sensitive handling of data is so important, what to consider when using AI, and how magnamate as an AI chatbot "made in Germany" guarantees full GDPR compliance.
Published
07/01/2025
Topic
Artificial Intelligence
Table of Contents
The most important things at a glance
Data protection in AI-based customer service is extremely important in order to comply with applicable laws and maintain customer trust
The General Data Protection Regulation (GDPR) also provides a clear legal framework for AI systems like chatbots that you must adhere to
German consumers are concerned about their data security on the internet, yet place great trust in local service providers
Our AI agent magnamate, developed in Germany, automates your customer service in e-commerce 100% compliant with data protection
Why is the topic of data protection so important?
Data protection has enormous relevance within the European Union - especially when AI systems like chatbots are used, which can largely automate customer service.
There are two main reasons for this:
Legal compliance: The General Data Protection Regulation (GDPR) also sets clear rules for AI chatbots (more on that shortly). Failing to comply could result in high fines, damage claims, and immense reputational loss.
Customer trust: Customers expect their data to be handled confidentially. According to a survey of 2,000 German participants, 60% of consumers would spend more money if they are assured of adequate protection of their personal data.
"As digital technologies continue to penetrate all areas of everyday life, people should also be able to trust them. Trustworthiness is a prerequisite for their acceptance."
European Commission
Artificial Intelligence - a European concept for excellence and trust (2020)
What requirements does the GDPR impose on AI chatbots?
Chatbots and AI agents process various personal data in customer service, including names, addresses, order details, and chat histories. The GDPR provides clear guidelines for this:
Transparency: Your customers must be clearly and understandably informed about the use, functionality, and data processing of the chatbot in accordance with Art. 13 GDPR.
Consent: Users must actively agree to the data processing (Art. 7 GDPR). The consent must be given voluntarily, specifically, and unambiguously, e.g., through a corresponding notice or within the chat, and must be able to be proven at any time.
Right to deletion: If user data is no longer needed for the original purpose, you are obligated to delete it. Additionally, a user may request the deletion of their personal data at any time (so-called “right to be forgotten,” Art. 17 GDPR).
Order processing: If you engage external service providers to process personal data, you need a written data processing agreement according to Art. 28 GDPR. This agreement regulates purpose, scope, security measures, and responsibilities in a binding manner.
Moreover, there are some additional provisions, including purpose limitation and data minimization (Art. 5 GDPR) as well as appropriate security measures to protect the data (Art. 32 GDPR).
From 2025: New AI Regulations Under the EU AI Act
The EU Artificial Intelligence Act is an EU regulation that will be implemented in several phases starting in 2025 and aims to make the use of AI transparent and clear. For example, AI systems must be clearly labeled as such in the future. With magnamate, you ensure full compliance: Customers can see in the chat at any time whether they are speaking to a human or the AI.
magnamate: AI chatbot "made in Germany" for GDPR-compliant customer service in e-commerce
magnamate is the smart solution for merchants who want to automate their customer service without neglecting data protection and security. As a "made in Germany" AI agent, magnamate handles even complex support requests 100% compliant with the GDPR.
Thanks to the following measures, you will never have to worry about adequate data protection in AI-based customer service again:
All customer data – including chat history, configurations, and user settings – will be stored exclusively on servers in Germany. This ensures that all data remains within the scope of the GDPR and is subject to strict European data protection standards.
Even when communicating with language models (LLMs), magnamate does not leave the European legal framework. The data processing is carried out through European server locations of established providers such as Microsoft Azure. Exports of data to third countries are excluded.
Customer data will only be stored as long as necessary according to the GDPR. After expiration of set deadlines - some of which can be configured by you individually - deletion will occur automatically. This way, sensitive data of your customers will never remain in the system longer than necessary.
For all external service providers such as hosting partners or LLM providers, there are data processing agreements (Data Processing Agreements) in accordance with Art. 28 of the GDPR. This contractually specifies how the data is processed, who has access, and what protective measures apply.
Before your customers interact with magnamate, consent for data processing is actively obtained via a consent banner. At the same time, it is clearly communicated in the chat that this is an AI – no tricks, no false identity.
Checklist: How to Ensure GDPR Compliance
With the following checklist, you can ensure in just a few steps that your service remains not only customer-friendly but also compliant with the GDPR.
✅ Document data flows: Record and verify what customer data you collect, where it is processed, and who has access to it.
✅ Obtain consents: Implement transparent consent banners or consent declarations and document them thoroughly.
✅ Draft a privacy policy: Clearly and understandably inform your customers about the purpose, type, and duration of data processing as well as their rights as data subjects.
✅ Enter into data processing agreements: Ensure that there is a data processing agreement with every service provider that processes customer data on your behalf.
✅ Define deletion periods: Retain data only as long as necessary and implement (automatic) deletion mechanisms for customer data.
✅ Implement security measures: Employ technical and organizational measures (e.g., permissions, password policies) to limit and make access to data transparent.
✅ Plan data protection training: Regularly sensitize your customer service team so that employees are aware of current data protection regulations and can implement them securely in everyday life.
Alternatively, you can use a GDPR-compliant software solution like magnamate, which automates most of these tasks. You can use our AI agent for free and in full functionality for up to 500 messages - and see for yourself.
The integration of AI in customer service raises legitimate data protection concerns. Unclear data flows, lack of transparency, inadequate deletion concepts – all of this can become a serious risk if your AI chatbot does not work 100% GDPR-compliant.
Especially in e-commerce, where sensitive data is processed daily, customers expect a high standard. Because the concern is widespread: Only 19% of Germans consider their data online to be safe, as a survey by the Digital Association Bitkom found.
However, the survey also provides positive news: Nearly two-thirds of respondents strongly or very strongly trust German IT companies with their personal data.
One more reason to try out our AI agents magnamate completely free for two weeks - and to convince yourself of the immense advantages of automated customer service.
