By- Abhishek Verma (LLM Student) & Dr. Rekha Verma (Assistant Professor of Law), Amity University, Noida
Abstract
The advent of Artificial Intelligence (AI) has significantly transformed the digital landscape, introducing unprecedented capabilities across sectors such as healthcare, finance, law enforcement, and public administration. As AI systems become increasingly integrated into socio-economic frameworks, their dependence on extensive datasets frequently consisting of personal, behavioural, and biometric information elicits urgent concerns regarding data privacy and individual autonomy. Central to AI functionality is an unquenchable need for detailed data, much of which is gathered and processed without explicit, informed consent from users. This situation not only undermines the agency of data subjects but also poses challenges to the existing legal protections established to safeguard personal information. Responses from the legal sector to these complex challenges have varied significantly among jurisdictions. This paper is intended to critically analyze these developing dynamics, particularly emphasizing the interaction between AI innovation and the core principles of informational privacy. Additionally, the paper also traces the transnational characteristics of AI systems which introduce jurisdictional uncertainty, particularly regarding cross-border data transfers and the commercial utilization of personal data. In such a context, where digital identities are algorithmically derived and continuously changing, conventional understandings of privacy become increasingly insufficient. Consequently, this paper promotes the necessity for anticipatory, rights-based legal frameworks that can reconcile AI’s technological capabilities with democratic principles. Effective regulation must close the divide between innovation and ethical oversight, ensuring that advancements in AI remain accountable, transparent, and in accordance with the tenets of human rights in the digital era.
Keywords: Algorithmic Bias, Informed Consent, Right to Privacy, AI Regulation, Ethical AI
INTRODUCTION
The technological landscape has been dramatically altered by the advent and swift development of Artificial Intelligence (AI), which has an impact on almost every facet of contemporary life. AI technologies are now extensively incorporated into data-driven procedures that facilitate or automate human decision-making across a wide range of fields, including digital communication, finance, education, law enforcement, and healthcare. These systems operate using sophisticated algorithms that are trained on large amounts of data, which frequently include personal and sensitive details. The growing ability of AI to identify patterns, forecast actions, and make independent choices also brings up important issues regarding data ownership, control, and consent. Although AI has great potential, its dependence on the ongoing gathering, processing, and analysis of personal information has exacerbated existing worries about data privacy and security, particularly in areas where strong regulatory systems are still being developed.
The historical evolution of AI, from primitive rule-based systems to modern machine learning and neural networks, shows a growing reliance on data-driven approaches. Modern AI models, especially those that use deep learning, rely on algorithms that analyse and improve insights from large datasets that frequently contain behavioural, financial, biometric, and geographic information. It is challenging to determine how choices are made or how data is utilized due to the opaqueness of these systems, which are often referred to as “black box” problem. This kind of transparency deficit undermines the accountability principle, which is fundamental to numerous data protection regulations. The General Data Protection Regulation (GDPR), which was implemented by the European Union, provides a comprehensive legal framework that prioritizes user consent, purpose limitation, and the right to be forgotten on a global scale. It also tackles AI-specific issues with clauses on profiling and automated decision-making. In a similar vein, India has enacted the Digital Personal Data Protection Act, 2023, a significant legislative measure that introduces basic data privacy rights, sets consent standards, and offers grievance redressal methods. Nevertheless, the enforcement and interpretation of such regulations are constantly challenged by AI’s dynamic and ever-changing nature.
The data privacy ramifications of artificial intelligence are complex and require a combined legal, ethical, and technical strategy. Despite the necessary protections provided by regulatory frameworks like the GDPR and India's Digital Personal Data Protection Act, there is still a disconnect between legislative intent and technological implementation. AI systems frequently cross-national borders, which raises issues about jurisdictional authority, cross-border data transfers, and uniformity in enforcement. Additionally, the pressing need for ethical AI governance is underscored by issues surrounding algorithmic bias, discriminatory profiling, and the lack of informed consent. As a result, it is crucial to evaluate not just the technological advancements of AI but also its legal and social implications, especially in relation to the right to privacy, which the Supreme Court of India has acknowledged as a fundamental right in Justice K.S. Puttaswamy v. Union of India (2017). As AI continues to advance, policymakers, technologists, and legal scholars alike are increasingly concerned with ensuring that innovation is in line with democratic principles, human dignity, and legal accountability.
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