pseudo-anonymization (pseudonymization)
What It Means
Pseudonymization replaces identifying information in data with artificial identifiers or codes, making it impossible to identify individuals without access to a separate 'key' that maps the codes back to real identities. The original identifying information is stored separately under strict security controls, so the working dataset appears anonymous but can still be reversed if needed.
Why Chief AI Officers Care
Enables organizations to analyze and use personal data for business insights while significantly reducing privacy risks and regulatory compliance burden, as pseudonymized data receives more favorable treatment under laws like GDPR and can often be processed with fewer restrictions than fully identifiable data.
Real-World Example
A healthcare system replaces patient names and social security numbers with random ID codes (like PT-7429X) in their research database, while keeping the real names locked in a separate, heavily secured system - researchers can analyze medical trends without seeing patient identities, but doctors can still access individual records when needed for treatment.
Common Confusion
Many think pseudonymization makes data completely anonymous and eliminates all privacy risks, but it's actually reversible - the data can still be linked back to individuals if someone gains access to both the pseudonymized dataset and the key, so it requires ongoing security measures and may still be subject to privacy regulations.
Industry-Specific Applications
See how this term applies to healthcare, finance, manufacturing, government, tech, and insurance.
Healthcare: In healthcare, pseudonymization enables medical research and analytics while protecting patient privacy by replacing dir...
Finance: In finance, pseudonymization is critical for protecting customer financial data while enabling analytics, risk modeling,...
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Includes:
- 6 industry-specific applications
- Relevant regulations by sector
- Real compliance scenarios
- Implementation guidance
Technical Definitions
NISTNational Institute of Standards and Technology
"‘Pseudonymisation’ means the processing of personal data in such a manner that the personal data can no longer be attributed to a specific data subject without the use of additional information, provided that such additional information is kept separately and is subject to technical and organisational measures to ensure that the personal data are not attributed to an identified or identifiable natural person;"Source: GDPR
"“Pseudonymize” or “Pseudonymization” means the processing of personal information in a manner that renders the personal information no longer attributable to a specific consumer without the use of additional information, provided that the additional information is kept separately and is subject to technical and organizational measures to ensure that the personal information is not attributed to an identified or identifiable consumer."Source: CCPA
"A data management technique to strip identifiers linking data to an individual."Source: NSCAI
Related Terms
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