Executing Data Privacy Due Diligence on Third Parties PayPal seeks to conduct due diligence on third parties’ privacy policies and data protection safeguards, Committing to Responsible AI Practices including for potential acquisitions and strategic investments, to help ensure the controls are consistent As industry moves toward adopting more Artificial Intelligence (AI) “To innovate responsibly means with PayPal policies and applicable laws. The process systems, PayPal is committed to promoting the responsible use of this we must think deeply about involves review of internal and public-facing policies technology across our business. We’ve established a Responsible AI the impacts of technology on and practices, internal systems that access or store Steering Committee consisting of cross-functional representatives our customers’ lives, so that data, data security reports, data processing registrations who oversee AI-related developments and provide regular updates to more people reap the benefits and submissions to relevant governmental bodies to our Chief Risk and Compliance Officer for appropriate escalation of innovation, while providing understand past and current data practices. to our ERMC and Board. governance and mitigating We have established five principles of Responsible AI, which unintended risks and potential Partnering to Advance Privacy by Design are aligned with global regulators’ guidance. We have taken a harm. At PayPal, we take an risk-based approach to adopt these principles by prioritizing intentional and rigorous approach PayPal’s Global Privacy team is collaborating with potentially high-risk AI applications. to deploying the Center for Financial Inclusion at Accion, an technology to ensure independent global think tank that uses research Five Principles of Responsible AI: the protection and advocacy to advance inclusive financial and trust of our systems for low-income people around the world. customers.” Through this partnership, we are exploring the Jean Chong intersection of digital finance and data privacy VP, Financial and Model Risk Oversight New York, NY, U.S. and working to create a free, implementable toolkit for fintech companies to embed privacy Explainability Transparency Fairness Privacy Security PayPal ranked #38 on Newsweek’s principles into the design of their financial America’s Most Responsible products and services. Companies list Driving a Data-Responsible Culture In 2022, PayPal employees hosted and attended our Fifty-five teams composed of 175 participants submitted third annual Data Week, which helps build employee their ideas to the Data Week hackathon showcasing awareness of the latest advances in data topics and their dedication to effective data management across continues our culture of data responsibility, privacy the Company and to our core values of Innovation and and strong data governance. Over 4,000 employees Collaboration. participated live across 52 sessions around the world, double the engagement from 2021.