Data Processing Agreements and AI Tools: What Dutch SMEs Need to Know
Yes, required. As soon as an AI tool processes personal data on behalf of your business, GDPR Article 28 requires a written data processing agreement with that provider. This applies to every language model, automation platform, or API that sees client or employee data.
Most businesses have not explicitly signed that agreement with every tool they use. That's a common gap, and one worth mapping now.
As GDPR obligations go, the data processing agreement is fairly straightforward. It's also the one most often overlooked with AI tools. Teams adopt them as productivity aids, and by the time a name, a tax number, or a client file enters the prompt, the tool is already functioning as a data processor.
When a data processing agreement is required
The key question is whether the AI provider processes personal data on behalf of your business. If yes, the provider is a processor under GDPR and Article 28 applies.
This is almost always the case when you:
- input a client file or client communication into an AI tool to generate a draft letter, summary, or analysis;
- build an automation workflow that passes personal data to an external language model;
- use an AI assistant with access to your email, CRM, or document storage.
It is not the case when you use only anonymized or synthetic data, or when the tool is used for tasks that involve no personal data.
What GDPR Article 28 requires
The questions that matter
When is a data processing agreement required for AI tools?
As soon as an AI provider processes personal data on behalf of your business, and does not independently determine what happens to that data, it is a processor under GDPR. Article 28 then requires a written data processing agreement. This applies regardless of whether the provider is large or small, and whether the tool is a chatbot, a language model, or an automation platform.
Do major AI providers offer a data processing agreement by default?
Most large providers (Microsoft, Google, OpenAI via Azure) offer a Data Processing Agreement or equivalent document in their enterprise terms. Standard consumer or developer API terms typically do not include one, or are not intended for processing third-party personal data. You need to check the specific terms for each provider you use, and confirm which version applies to your use case.
What if an AI provider refuses to sign a data processing agreement?
Then you cannot lawfully use that provider for processing your clients' or employees' personal data, unless a different lawful basis applies. A provider that refuses to sign a data processing agreement while processing personal data is itself non-compliant with GDPR. Treat that as a risk signal worth taking seriously.
Do we need a separate data processing agreement for each AI tool?
Yes, one per provider that processes personal data on your behalf. If you use multiple tools in a single workflow, for example an automation platform that calls a language model, each link in the chain may require a separate agreement. We map which provider sees which data at each step in the workflow, so you know which agreements you need.
What is the difference between a data processing agreement and an NDA?
An NDA governs confidentiality of information in general. A data processing agreement is a GDPR-specific contract governing the rights and obligations around the processing of personal data. They overlap in part but are not interchangeable. For AI tools that process personal data you need the data processing agreement; an NDA alone is not sufficient.
What does Orellis do with data processing agreements in practice?
We are set up to document, at each step in a workflow, which provider processes which data and under what terms. As part of the design, we map which data processing agreements apply or still need to be signed. We do not sign those agreements on your behalf; that's for you or your legal advisor. We do make clear which agreements are needed and with which provider.
What this page cannot answer
This is an operational explanation of the data processing agreement as a GDPR requirement. It does not replace legal advice. Whether a specific use of a specific tool in your situation is GDPR-compliant depends on your data architecture, your legal basis, and the current terms of the provider at the time you read this. Your legal advisor or data protection officer is the right person to assess that for your specific situation.
Grounded in the statutory text
The requirements on this page are based on the text of GDPR Article 28. Supervisory authorities and courts may provide additional interpretations. For current enforcement guidance, refer to the Dutch Data Protection Authority (autoriteitpersoonsgegevens.nl) and the EDPB guidelines.
How Orellis approaches this
We are set up to map every workflow step by step: what data goes in, which provider processes it, what comes out, and who reviews it. Identifying which data processing agreements you need is part of that design. It is not a legal service. We make the choices visible so your advisor can assess and sign off on them.
We review everything before it goes live. This page was drafted with our own AI stack and checked by a human before publication.
Want to know which data processing agreements you need?
Tell us which AI tools you use or are considering, and we will map which data passes through each step and which GDPR agreements that requires. We won't need system access or your data to do it, and you'll hear back from a real person.
Tell us how your workflow runs or book a free audit