contracts

Drafting a DPA for AI Tools That Process Your Data (2026)

Adira EditorialLegal AI desk6 min read

What a DPA is and why AI tools need a special one A data processing addendum, or DPA, is the contract that governs how a service provider handles personal data on your behalf. Under the EU and UK GDPR, when you (the controller) let a vendor (a processor) process personal data for you, Article 28 requires a written contract setting out the subject matter, duration, nature and purpose of the processing, the type of data and categories of people, and a specific list of the processor's duties. Similar duties exist under other laws, such as the CCPA and CPRA in California. A DPA is how you meet that legal requirement. An AI tool needs more than a standard DPA because AI introduces uses of data that older templates never imagined: using your data to train or improve a model, generating new data from it, long-lived embeddings and logs, and foundation-model providers sitting as sub-processors behind the tool. A DPA for an AI tool keeps the Article 28 core and adds terms that nail down these AI-specific uses. This page is general information, not legal advice. Data-protection law and the drafting that satisfies it differ by jurisdiction and change over time, so have a qualified professional adapt the document for a live deal. ## The Article 28 core your DPA must contain Every GDPR-aligned DPA, AI or not, must require the processor to: - process personal data only on your documented instructions;

  • ensure people who process the data are bound by confidentiality;
  • apply appropriate security measures under Article 32;
  • not engage sub-processors without authorisation, and flow equivalent terms down to them;
  • assist you with data-subject requests and with your own security, breach and impact-assessment duties;
  • notify you of a personal-data breach without undue delay;
  • delete or return personal data at the end of the service; and
  • make available the information needed to show compliance and allow audits. Set out the subject matter, duration, nature and purpose, the types of personal data and the categories of data subjects, usually in a schedule. ## The AI-specific terms to add 1. No training on your personal data without consent. State plainly that the processor will not use your personal data to train, fine-tune or improve its own or any third party's models unless you have given documented, specific authorisation. This is the clause that most often separates an AI DPA from a generic one. 2. Outputs and derived data. Say how embeddings, vectors, logs and other data derived from your personal data are treated, how long they are kept, and that they are deleted or returned with the source data. Derived data is easy to forget and can persist long after you think the data is gone. 3. Sub-processors, including model providers. Require a current list of sub-processors that names the foundation-model providers behind the tool, with the right to object to new ones and to be told where data is processed. 4. International transfers. Where personal data leaves its home jurisdiction, require a valid transfer mechanism, such as the EU Standard Contractual Clauses or the UK addendum, and a transfer-risk assessment. AI tools often route data through model providers in other countries, so this clause does real work. 5. Automated decision-making. If the tool makes or supports decisions about people, address the GDPR Article 22 rules on automated decisions, the information you must give people, and the support the processor will provide so you can meet those duties. 6. Security specifics and breach timelines. Beyond the Article 32 reference, set concrete breach-notification timelines and the security measures that matter for an AI pipeline, including access controls on training and inference data. 7. Deletion and exit. Require deletion or return of personal data and all derived artefacts within a set period at the end of the service, with written confirmation, and say what, if anything, the processor may retain and why. ## A clause checklist you can adapt ``` AI DATA PROCESSING ADDENDUM - CHECKLIST [ ] Roles stated (controller / processor) and processing described in a schedule (subject matter, duration, nature, purpose, data types, data subjects) [ ] Processing only on documented instructions [ ] No training / fine-tuning on personal data without documented consent [ ] Confidentiality of personnel [ ] Article 32 security measures, plus concrete controls for the AI pipeline [ ] Sub-processor list including model providers; authorisation and flow-down [ ] International transfer mechanism (SCCs / UK addendum) and TRA [ ] Breach notification without undue delay, with a stated timeline [ ] Assistance with data-subject rights and Article 22 automated decisions [ ] Treatment, retention and deletion of embeddings, logs and derived data [ ] Audit and information rights [ ] Deletion or return of all personal data and derived artefacts on exit, with written confirmation [ ] Allocation of liability and indemnity consistent with the main contract
- Signing a DPA does not make the processing lawful on its own. You still need a lawful basis for the processing, and the tool still has to be appropriate for the data.
- A no-training clause records a promise; verifying it is honoured is a matter of the processor's assurances, audits and track record, not the clause alone.
- A DPA cannot cure a tool that is fundamentally unsuitable for sensitive data. Sometimes the right answer is not to put the data in the tool at all. ## Keeping DPAs consistent across every AI vendor The real discipline is not drafting one good AI DPA; it is making sure every vendor that touches personal data has signed an equivalent one, that the no-training, sub-processor and transfer terms do not drift between suppliers, and that when a regulator or a data-subject request lands you can find which version each vendor signed and what it covers. Drafting from a clean DPA, spotting where a vendor has weakened the training restriction or the deletion duty, editing a clause in plain language across several addenda, and holding every version with its date can live in one AI workspace tuned to how your company contracts. [Adira](https://adiralaw.com) is built around that single-workspace idea for business contracts. For a single tool the checklist above is enough to work from; the point worth keeping is that a data-protection obligation only protects people if it is applied to every vendor and kept in one place.

Frequently asked questions

What is a DPA and when do I need one for an AI tool?
A data processing addendum is the contract that governs how a vendor processes personal data on your behalf. Under the EU and UK GDPR, Article 28 requires a written DPA whenever a processor handles personal data for you as controller, and similar duties exist under laws such as the CCPA. You need one for any AI tool that will process personal data, and it should go beyond a standard DPA to address AI-specific uses such as training.
How is an AI DPA different from a normal DPA?
It keeps the standard Article 28 core but adds terms for uses that older DPAs never imagined: whether your personal data can be used to train or fine-tune models, how embeddings, logs and other derived data are treated and deleted, which foundation-model providers act as sub-processors, international transfers through those providers, and automated decision-making about people. The training-restriction clause is usually the key addition.
Should an AI DPA stop the vendor training on my data?
For most buyers, yes. A strong AI DPA states that the processor will not use your personal data to train, fine-tune or improve its own or any third party's models without your documented, specific authorisation. Remember that the clause records a promise; confirming it is honoured depends on the vendor's assurances, audits and track record, not on the wording alone.
Does signing a DPA make my use of the AI tool lawful?
No. A DPA is required paperwork and allocates duties between controller and processor, but it does not by itself make the processing lawful. You still need a valid lawful basis for the processing, you must give people the information the law requires, and the tool itself must be appropriate for the data. For some sensitive data the right decision may be not to use the tool at all.
What are derived data and why do they matter in an AI DPA?
Derived data are things the tool creates from your personal data, such as embeddings, vectors and logs. They matter because they can persist long after you think the original data is gone, and a generic DPA may not mention them. The AI DPA should say how derived data are treated, how long they are kept, and that they are deleted or returned together with the source personal data on exit.
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