AI Impact on Data Privacy

May 23, 2023

As we enter a new era of artificial intelligence (AI), data privacy concerns have grown increasingly prominent. A study by professional services firm Genpact revealed that 71% of consumers are worried about how AI will impact data privacy.

These concerns stem from the fact that AI systems can collect a range of personal data without consent, potentially invading privacy rights. As such, companies who utilize AI must take data privacy into account as an essential consideration.

1. They Are Concerned About Data Leakage

Data privacy has long been a top concern for consumers. They worry about their information being breached and stolen by cybercriminals, as well as the impact this could have on their lives. According to one recent study, 78% of consumers would avoid shopping at a retailer if there was a data breach.

However, AI can assist companies in reducing the risk of data leakage and strengthening their organization’s security posture. For instance, AI automates several manual tasks like detecting malware, fixing bugs, and finding exploits; freeing up human workers to focus on more high-skilled work like creating new products or analyzing data.

Though AI can be beneficial in certain circumstances, it also presents significant risks if used inappropriately. Thus, regulations and management of AI must adhere to privacy laws for its protection and proper management.

In the European Union, for instance, the GDPR provides protections for personal data. It lays out how businesses must safeguard consumers’ private information, including by requiring businesses to notify them when their data is being collected and giving them the option to opt out or request that their information be deleted.

This is an essential step in safeguarding consumer data, since many industries utilize it without their consent. Retailers and financial institutions, for instance, often collect and sell customer information without consent.

Unfortunately, companies often lack a comprehensive understanding of their collected data or how it’s utilized. Automated data discovery and classification solutions can be invaluable here; giving organizations an organized map of personal information along with all related systems and processes.

These tools also enable consumers to view and correct their personal data, which is an enormous step toward increasing consumer trust in these types of services and could potentially improve product quality as well.

Meanwhile, some are already advocating that AI should be strictly regulated and developed with approval. These views suggest that AI should only be utilized in instances where it provides genuine benefits to society, and if mass data collection is involved there may be an individual obligation to share this data.

2. They Are Concerned About Privacy Policies

As AI becomes more mainstream, companies are utilizing it to enhance customer experiences and make data-driven decisions. While this can be advantageous for businesses, it also raises a number of concerns. One major one is how AI will affect data privacy.

According to a new survey, consumers are already worried about AI’s potential impact on their privacy. They fret over data leakage, algorithmic bias, “deepfakes” (AI-generated fake videos), and rogue robots that could take over the world.

Furthermore, consumers are becoming increasingly anxious about how their personal information is used compared to a few years ago. 78% of Americans express worry about companies collecting too much personal data about them and 42% do not trust that brands use such data ethically.

Unfortunately, many consumers are unaware of their rights to have personal data deleted or notified if it has been breached. This is particularly true for younger adults; moreover, older generations tend to lack awareness regarding these policies than younger groups do.

Many people are worried about their data security due to companies using it to predict future behavior without their knowledge or consent. This practice often occurs without consent, leaving customers feeling deeply uneasy.

Furthermore, AI can also be employed to impersonate people – an outrageous violation of privacy. Multiple articles have reported about tools that identify someone by scanning pictures online for matching data. These programs could be employed for various purposes like dating or finding suspects in crime scenes.

Marketers use these tools to target advertising based on a person’s past purchase history. This can be especially problematic for some consumers, particularly if they are worried about their safety or that of their children.

Therefore, companies must adopt best practices and procedures when using AI for business solutions. Doing so helps prevent data breaches which could damage a company’s reputation and result in losing business, according to Ahmad.

3. They Are Concerned About Consent

As AI continues to advance and become more prevalent, consumers are becoming increasingly worried about its effects on data privacy. Recently, Facebook’s Cambridge Analytica scandal and forthcoming regulations like the EU’s GDPR have stirred up controversy around how companies collect and share personal information online.

Due to this, many consumers are skeptical of businesses’ intentions when it comes to collecting their data. A 2018 study revealed that more than half of global internet users have stopped visiting websites without clear consent policies in place. This has had a profound effect on consumer trust with brands and how much personal data people are willing to share with these organizations.

Despite these reservations, some consumers remain optimistic about the possibilities AI offers them. Healthcare has seen a major transformation due to AI-driven applications that promise personalized treatment plans, faster diagnoses and improved patient outcomes.

However, as technology continues to advance and become more sophisticated, brands must be able to explain how their AI tools operate, what kind of data is collected, and how this data will be utilized. Doing this is essential for building customer trust and cultivating loyalty among shoppers.

Companies must demonstrate how they’re using collected data to enhance products and services, while also adhering to ethical guidelines. This becomes even more essential given the growing number of consumers who desire control over their personal data.

According to KPMG’s study, 40% of consumers would be willing to share their data if they knew who would use it and how. This disparity could be greatly diminished if organizations simply added some transparency when it came to data collection practices.

At present, consumers are deeply worried about how AI could impact their daily lives and they’re vocal about this fear. Marketers and tech platforms need to respond to this level of anxiety by providing assurances about how customers’ personal data is handled.

4. They Are Concerned About the Future

AI is becoming an integral part of our lives, from travel navigation and smart home devices to smartphones, drones and the finance industry. While these technologies make our lives simpler and faster, they also present many ethical, social and legal difficulties that must be addressed.

One of the major obstacles facing AI is its inability to adequately explain its decision-making process. This issue is especially pressing in industries like banking, where regulations demand that credit decisions be communicated.

When a computer program makes a credit-issuing decision, it draws data from thousands of variables to arrive at its result. This can be difficult even for experienced individuals to comprehend.

Consumers may experience a range of issues due to this, such as being concerned that their data could be misused without consent. Furthermore, it erodes consumer faith in internet companies and could result in less adoption of advanced technologies like smart-home devices.

Furthermore, there are concerns about job losses or displacements due to automation. This has not been an entirely new worry; indeed, the Luddite movement began in 1811 when textile workers protested against automation.

Though automation may cause fear, it’s essential to remember that every technological revolution has ultimately created more jobs than it eliminated. That is because humans must do things machines can’t, such as caring for our elderly parents or nursing babies.

Given this context, it would be wise to become acquainted with the potential impacts of AI on your personal life and business. Doing so can better position you for success in the future and reduce any unnecessary worries.

Artificial intelligence has already had a profound effect on our world, and will continue to do so in the years ahead. For instance, AI is already helping people lead healthier lives by accurately diagnosing diseases at an earlier stage and improving healthcare outcomes.

Additionally, AI is helping many businesses run more efficiently. These include firms producing and selling goods and services as well as those offering customer support, fraud protection and other essential functions.

Ammar Fakhruddin


Ammar brings in 18 years of experience in strategic solutions and product development in Public Sector, Oil & Gas and Healthcare organizations. He loves solving complex real world business and data problems by bringing in leading-edge solutions that are cost effective, improve customer and employee experience. At Propelex he focuses on helping businesses achieve digital excellence using Smart Data & Cybersecurity solutions.

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