TECHNO-LEGAL CONCERNS OF ARTIFICIAL INTELLIGENCE (AI) IN DATA PRIVACY
- Adv. Rajas Pingle and Radhika Tapkir
I. Introduction
In the majority of places all over the world, privacy laws often draw inspiration from the OECD Guidelines on the Protection of Privacy and Transborder Flows of Personal Data. The guidelines highlight mainly eight fundamental principles which have been integral for global privacy legislation. The benefit of such principle-based laws is that they recognize the complexity of privacy and can adjust toward the modification of the tailoring of privacy protection in different scenarios, evolving technologies, and societal shifts. The AI phenomenon, however, has set new challenges to the founding principles of the OECD Guidelines, even though it has proven quite successful in the world for the legislation of global privacy.[1]
In other words, artificial intelligence has already reached its tipping point as a transformational technology across industries and fundamentally changed the way people live, work, and interact. From personalized recommendations and virtual assistants to autonomous vehicles and predictive analytics, AI can offer significant benefits for all. On the flip side, however, this rapid spread of AI systems also does raise some humanly salient concerns about privacy since such technologies usually depend on the collection, processing, and analysis of a considerable amount of personal data.[2]
The intersection of AI and privacy presents a complex techno-legal landscape, where the boundaries between technological capabilities and legal protections are increasingly blurred. As AI systems become more sophisticated and autonomous, questions arise about the extent to which they can infringe upon individual privacy rights, and how existing legal frameworks can effectively address these challenges.
The present research paper takes up the techno-legal concerns in the light of AI and privacy, examining the current horizon of AI technologies, their applications, and the potential risks that may accrue from it against privacy. It will also analyse the current legal frameworks and their adequacy in dealing with AI-related privacy issues, to propose recommendations for future policy development and technological safeguards.
II. Overview of AI and its Applications
What is Artificial Intelligence (AI)?
Artificial Intelligence (AI) was coined by Prof. John Mccarthy[3] in 1955 and he defined it as, “the science and engineering of making intelligent machines.” AI technology has developed today to encompass ‘machine learning’, ‘deep learning’, algorithms, etc to mimic human cognitive processes to solve complex problems quickly and efficiently. It analyses data or data sets to establish a pattern and make predictions accordingly.
It is important to note that though the AI technology mimics human thought process, it still is an algorithm with robotic (incapable of human emotions) tendencies. Therefore, to utilise and incorporate AI in our daily lives we need to address the rising concerns regarding AI technology such as its legality (compliance to regulations), ethical and human values (adherence to base human principals and values), and technical soundness (the AI system or algorithm should be robust in its technical framework to fight against external attacks).
AI technologies describe a list of subfields comprising machine learning, natural language processing, computer vision, and robotics, among many others. Machine learning is a subset of artificial intelligence; it involves algorithms and statistical models that systems use in performing a specific task, improving performance, and learning without being explicitly programmed.
AI technologies have found applications across a wide range of domains, including:
1. Healthcare: AI is being used to analyse medical images, assist in diagnosis, and predict patient outcomes.[4]
2. Finance: AI-powered systems are employed for fraud detection, risk assessment, and personalized financial advice.
3. Transportation: Autonomous vehicles and intelligent traffic management systems rely on AI to navigate roads and optimize traffic flow.
4. Retail and E-commerce: AI is used for personalized product recommendations, customer segmentation, and supply chain optimization.
5. Surveillance and Security: AI-based facial recognition and behaviour analysis systems are employed for public safety and crime prevention. Although this demonstrates promising use of AI in many things that will, at the same time, improve human life, on the other hand, they demonstrate pretty substantial issues about privacy. Gigantic amounts of personal data are collected and processed without explicit consent or, in many cases, transparency. This may lead to privacy violations and the erosion of individual autonomy.
On one hand, while these examples show the huge potential for AI to make countless aspects of our life better, they also bring to light enormous privacy concerns that come along with it. Large collections and processing of personal data without explicit consent and in many cases, lack of transparency sometimes infringe on privacy and erode individual control.
III. Privacy and AI
AI’s impact on privacy is not inherently negative, AI in some cases could enhance privacy protections. For example, it could be that AI diminishes the need to access raw data and minimizes privacy hazards caused by human error. It could also lead to more nuanced consent mechanisms, offering personalized services based on understood privacy preferences over time. In so doing, it means AI requires rethinking current measures put in place to protect privacy but not necessarily changing the same privacy in totality.
Privacy takes on a vital role that goes beyond information protection to provide a tremendous ethical framework in using new technologies. Balancing technological progress and concern for privacy would help build up socially responsible AI development that, in the long run, adds value to humanity.
Using AI for Privacy purposes
AI utilises data to programme its understanding and algorithm. Such data can be personal data, personally identifiable information of an individual, and non-personal datasets. Such data can be further divided into various types of datasets used in AI training and testing -
● Public Access or Government Datasets
● Image/Visual Datasets
● Audio Datasets
● Machine generated or Synthetic Datasets
● Healthcare Datasets
● Personal or Non-personal Datasets, etc.
The usage of personal data poses a threat to privacy of individuals across the globe. Therefore, by using artificial intelligence to auto detect threats and potential security breach anomalies can improve security of the computerised engagement of the individuals. It will create a user-friendly experience.
Furthermore, routine, easy and repetitive tasks can be automated for better utilisation of the time, as it will decrease response time and improve the burden on technical professionals.
The use of artificial intelligence powered technologies in various fields such as biometric authentication, user behaviour analytics, detection of data breaches, preventing cyber attacks, threat intelligence, etc.[5]
A Norwegian Saas (Software-as-a-Service) platform is creating its own Privacy AI Chatbot. The Chatbot is aimed to help its users (such as the ‘Data Controllers’ under GDPR) to understand, review and draft legal compliance clauses and legislations with ease.[6]
Techno-legal Privacy Concerns of AI –
Privacy concerns in AI systems and algorithms have been found across all stages of process, i.e., from the input of data (collection, usage, processing, retention) to output of response (black box stage and deep learning data output). Certain processes of AI technology still remain an unexplained mystery, specifically in the case of outputs and responses produced by deep learning. Companies dealing with creation of AI technology or tools often use a wide range of data sets to train their AI to understand different situations, phrases and commands in an efficient manner. Companies like Meta, Google, Microsoft, Apple, Tesla, OpenAI, and other Social Media as well as BigTech giants have access to unrestricted volume of data from across the globe.[7]
It is important to address the various legal concerns and consequences arising out of such a situation -
There have been multiple instances of unconsented collection of data (both personal and non-personal). Oftentimes the source of data is questionable or kept ambiguous to avoid legal consequences. For Example - Generative AI companies such as ChatGPT, Google Bard (now Gemini), and other Large Language Models (LLMs) have been accused of ‘sneakily’ collecting data (prompts and information) entered by individuals. It was found in 2020-21 that the sensitive and confidential data entered by employees of various organisations on the ChatGPT platform was later used to train the LLM. It showcases the lack of awareness of employees as well as sidelining legal obligations of transparency and consent. The data collected was stored and processed without the consent of the individuals.
Recently, it was found that the search history of individuals using Google's ‘Incognito Tab’ of Google was stored to track the individuals search habits and behaviours. Google had previously denied any claims of storing browsing history of Incognito Tabs. This is another violation of privacy regulation in multiple jurisdictions.
In 2023, Samsung had to ban the use of Generative AI softwares and tools (specifically ChatGPT) among their employees. This rule within the company came about due to concerns leading up to leak of sensitive and confidential information on ChatGPT, etc.[8] It has been observed that ChatGPT has a policy of saving chat history for further training of LLM on its basis. An option to manually disable the feature is available, but there remains ambiguity regarding its backend implementation.
This example was later followed by several US led banks[9] - JP Morgan Chase[10], Bank of America, Citigroup, and GoldMan Sachs to prevent a similar outcome.
The above examples highlight the ignorance of employees and lack of training regarding GenAI’s issues have led to multiple companies across sectors to limit its use in the workplace.
The balance between utilising AI technology to make our lives easier and to provide it with your personal data should be maintained. Only the required data should be provided to arrive at a meaningful conclusion without compromising an individual. As per the principle of the General Data Protection Regulation of 2018, data minimisation refers to the collection of only the minimum required personal data that any individual or organisation might need to deliver an individual or organisation the required service, i.e., collecting unnecessary data from anyone should be avoided.
AI has been riddled with inherent bias and discriminatory behaviour towards specific ethnic, racial and gender groups due to skewed datasets (containing disproportionate datasets). The ‘inclusivity’ fundamental seems to have escaped multiple AI tools, as persistent opinionated views have been generated to certain chat or visual prompts. A famous example being the facial recognition technology used by Apple Iphones was found to be racially discriminatory towards the Chinese population, i.e., it viewed every Chinese face to be the same and therefore could unlock Iphones without restriction and recognition. This case is a great example of breach of privacy of individuals, because anyone could access their phones due faulty behaviour of AI.[11]
In 2016, ‘X’ (previously known as ‘Twitter’), the famous social media platform, launched an AI chatbot called ‘Tay’. It was reported that within 24 hours of its launch, there was an increase in the sharing and re-sharing of tweets by Tay that were blatantly racist, transphobic and anti-semitic. This case showcases that human behaviour can be learned by artificial intelligence technology by mere observation and interaction with malicious human actors. The whole fiasco was a result of humans on the platform feeding it inflammatory messages.[12]
Similarly, it has been observed that the technology used in the US healthcare facilities often tend to discriminate against people based on racial prejudices. It was observed that the Black Americans were diagnosed with less care and were often categorised as low-health risk persons and treated as par with healthy white Americans, even though on actual human diagnosis it was found that those people were being under-diagnosed.[13]
This highlights the problem of learned bias behaviour. The machine only replicates what it has been trained to learn and generate responses accordingly.
‘Automated Decision Making’ in layman terms refers to any decision that has been made by an algorithm or software without any visible human interference. In the case of SCHUFA, the Court of Justice of the European[14]Union on 7 December 2024 ruled that the credit reference agency engaged in ‘automated decision making’ to generate credit scores. As per Article 22 of the General Data Protection Regulation of 2018, it was found the conditions required to establish automated decision making were fulfilled. The conditions are - the decision should be solely made by machine, without human interference and it should impact the individual legally and significantly.
In 2018, Amazon scrapped its AI-based recruiting tool due to its bias toward the female population. It was observed that the tool essentially equipped to scan the resumes was rejecting resumes of qualified women in the TEch field due to a programmed bias.[15] The tool was found to prefer overly masculine resumes based on the names, hobbies, etc. even if the men who were being screened-in were less qualified than the women candidates.
In Deep Learning, it has been observed that data fed into the system is passed through multiple layers of internal algorithms to generate an output, yet it has been nearly impossible to understand the process of data interpretation to arrive at the conclusion generated.
The ambiguous behaviour of an AI can also be attributed to its intrinsic framework being of non-human nature.
AI technology has become an integral part of our daily lives. This has attracted the attention of cybercriminals towards it. A singular data breach can unleash havoc in an individual’s life due to loss of personal, sensitive and financial information making him/her a target of cybercriminals. Between 2022 to 2023, more than 100,000 account credentials were hacked, leaked and sold on the dark web by cyber criminals. This data breach is indicative of how popular AI tools can attract malicious players.
Furthermore, in 2024 it was found that ChatGPT is capable of leaking sensitive chat/conversation, raising data privacy concerns. It showcases inherent technical vulnerabilities of the software.[16]
Cybercriminals have resorted to using generative artificial intelligence tools and softwares to create codes, algorithms, etc. for malicious intent. Furthermore, cybercriminals make their own AI software and train it to launch attacks and utilise malicious means while working in the background, while it appears innocuous to the human eye. Such AI technologies if launched on a computer system without proper safety nets would result in harm of immeasurable nature, as these artificial intelligence softwares may be trained to run automated searches, exploit the files on the system and evade the security systems within the computer, and analyse and target vulnerabilities.
There has been wave of ‘dark LLMs’ (Large Language Models), i.e., the internet is flooded with the dark and malicious versions of ChatGPT, Google Gemini (earlier known as ‘Google Bard’), Perplexity, etc. Such advanced AI systems usually deceive users and defraud them. Examples of dark LLMs are the FraudGPT[17], WormGPT (it is an AI based hacker tool), DarkBert and DarkBart[18] (both are creations of a South Korean Data Intelligence Firm called ‘D2W’), etc. are available on the Dark Web. These tools are used by hackers and other cybercriminals. These tools can be sold and bought on the dark web, and in certain cases could be used on a subscription plan.
Profiling is usually found to be done in cases of the healthcare sector and the criminal justice system. It is praised for its accurate predictive qualities. In the healthcare sector, such AI technology utilising profiling is being used to predict behaviours and patterns of diseases and patients. However, profiling can occur unintentionally as well. For example, information of an individual publicly available on any social media platform is used by another and with the help of AI algorithm predicts the person’s cognition process and behavioural patterns, this might create a widespread concern.
Article 4 of the General Data Protection Regulation of 2018 in its sub-section (4) defines ‘profiling’ as, ‘any form of automated processing of personal data consisting of the use of personal data to evaluate certain personal aspects relating to a natural person, in particular to analyse or predict aspects concerning that natural person’s performance at work, economic situation, health, personal preferences, interests, reliability, behaviour, location or movements’.
AI is being heavily deployed in various surveillance methods and tools by governments and other industries. One great example of AI in surveillance methods is the Facial Recognition Technology used by the China’s government to surveil the public on their streets. Though it is for the convenience of the government, it has caused widespread anger among the common citizens due to its invasive and extensive nature. According to a New York Times news article in 2022, the Chinese surveillance system suffered a data breach where data of the citizens was compromised. An anonymous hacker was selling the said data on the dark web for 10 Bitcoins. The facial recognition data was found to contain data from external databases such as private companies, e-commerce platforms and delivery companies (stating email IDs, specific instructions given by customers on delivery packages, home addresses, and phone numbers, etc.).[19] It has led to the question of how much and what type of data is shared by the private entities in the service industry to the Chinese government. The same government that boasts about creating the most rigorous data protection regime has no care about the privacy of their own citizens.
IV. A comprehensive view under different AI and Privacy Regulations
The three data protection acts mentioned below are specially designed to address the rampant issues of privacy violations in their respective territories and their citizens. The ‘personal’ data of an individual in simple terms refers to data that can be used to personally identify an individual through the given indicators. The ambit of what is considered to be personal data varies from country to country.
The transfer of data (or cross-border transfer of data) is a heavily regulated provision under all the data protection legislations. We can safely assume that the data that is being transferred may utilise AI technology or tools.
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The General Data Protection Regulation of 2018 is applicable to EU and EEA citizens. It aims to protect the personal and sensitive data of its citizens by regulating the uses and purposes for which the data is collected and processed across various industries. The arrival of the GDPR was hailed to be a trendsetter for data protection legislations around the world. The GDPR functions on the basis of seven fundamental principles enshrined in Article 4 of the Act - namely Lawfulness, Fairness and Transparency, Purpose Limitation, Data Minimisation, Accuracy, Storage Limitation, Integrity and Confidentiality, and Accountability. These fundamental principles lay a strong foundation for protection against legal violations of data protection laws in the EU.
The GDPR of 2018 does not explicitly mention and refer to AI technology and the risks posed by it to data privacy. Though, it can be assumed that every type of data that is collected, stored, shared, transferred and processed (be it related to AI technology or otherwise) is deemed to be regulated under this regulation.[20]
The CCPA of 2018 governs the consumer data of the citizens of California (in the USA). The Act is specifically designed to view the relationship between the consumer (Data Subject) and the collector/processor. It aims to provide a safeguard against the exploitation of consumer data acquired by companies and big corporations from being exploited or re-purposed for other uses without consent of the consumer.[21]
The DPDPA of 2023 does not explicitly mention the terms AI or machine learning or deep learning. However, it establishes a strong base to protect personal information of Data Principals from being exploited or abused or misused by malicious actors. The data under this Act is specifically referred to as Digital Personal Data of any individual, i.e, the data of an individual should be in the digital form or if it is initially in the physical form, it should be converted into digital form to be covered under the ambit of this Act.
The Act only has one legal basis, i.e., consent, to collect data from the Data Principal. The Data Fiduciaries and Data Processors are required to comply with the same to maintain legal compliance. The Act focuses on providing rights to the Data Principals under the Sections 11 to 14. The Act does not provide the Right to Data Portability explicitly. Additionally, the cross-border transfer of the data can be regulated by the Central Government, i.e. they can restrict the data transfer to certain countries or territories due to political or any other reason.[22]
The EU AI Act of 2024 has set a global standard for AI regulatory legislations around the world. It aims to provide ‘trustworthy AI systems’ to be deployed and used. It utilises a ‘risk-based’ approach towards analysing the potential threats posed by AI. The risks are divided into four categories - unacceptable risk, high rise, limited risk, and low risk.
This AI legislation ensures the use of AI systems in a safe manner to maintain non-discriminatory, transparent, traceable and environmentally friendly vibe. Additionally, it promotes AI decisions overseen by human intervention, rather than completely relying on automation.
The EU AI Act of 2024 tackles the issue of AI technology and its effects on the data privacy by -
1. Article 10 of the Act mentions that the right to the protection of personal data is safeguarded in other legislations passed by the European Parliament.
2. The Act ensures that any new AI application or technology before being deployed should be assessed for its risks as per the categorisation provided under this Act. Categorising the different levels of risks associated with the AI technology. It clarifies how the tool or algorithm might affect the fundamental rights and privacy of their citizens. For example, in the case of AI applications that have been categorised to be as ‘high risk’ under the Act such as the manipulative AI or the unintentional scraping of facial recognition data from publicly available footage.
3. Article 20 of the Act advocates for ‘AI literacy’ should be made mandatory to ‘providers, deployers, and affected persons … to make informed decisions regarding AI systems’. It further mentions that The European Artificial Intelligence Board should support and ‘promote the AI literacy tools, public awareness and understanding of the benefits, risks, safeguards, rights,and obligations in relation to AI systems’.
4. It promotes transparency of the AI systems, and puts the responsibility of developing safe AI systems on the deployers. It mentions that all the individuals involved in the making and deployment of the tool or system should have working knowledge about it along with any potential risks, loopholes, and biases that might be present within the system.
5. The Act emphasises on the importance of human oversight while dealing with high risk AI. The Act explicitly ensures that all the conclusions and outputs generated by the AI system are reviewed by humans (it should not be a case of automated decision making) and that steps are taken to intervene or mitigate any potential risk or harm to the fundamental rights and privacy of its citizens.[23]
1. USA’s AI Bill
In February-March 2024, the AI bill was introduced to set guidelines to ensure that the AI designs are compliant with the legal needs of the country. It takes an expansive approach to address AI technologies in the employment context. The bill focuses on ‘automated employment decision making’ and seeks to regulate AI tools responsible for the same. It advises the employer to seek consent of the employee and to make them aware of the parameters used by the tools for the same. Such tools are often based on the fundamentals of ‘predictive analysis’ and utilise a singular mindset to generate output and make decisions.[24]
2. Peru’s AI Bill
Peru was the first Latin American country to pass an AI Bill in 2023.[25] It applies to the natural as well as legal persons who develop, research, innovate and apply AI within Peru's territory (even if physically present in a different country). It classifies the AI systems based on the risks posed by their deployment within the public domain - unacceptable risk, high risk, limited risk and insignificant or minimal risk. It ensures that before deployment of the AI system, a safety check should mandatorily be made. The AI Bill is similar to how the EU AI Act of 2024 is drafted.
Inspired by Peru’s insight to regulate AI systems, Paraguay and Brazil are also initiating their own AI regulation bills. Paraguay, however, is taking the route to introduce AI regulation that focuses on the implementation and use of AI tools and systems with a focus on data protection issues.[26]
3. India’s AI Advisory and Digital India (Draft) Bill
The Digital India (Draft) Bill has proposed to address the accountability of emerging technologies like the AI and Blockchain Technology in the Indian scenario. The draft bill is hope to regulate the AI tech and to present the citizens with a legal solution in case of incidents arising out of the same. Such a matter faces several challenges of -jurisdictional issues, the evolving nature of tech, scope, definitions, etc. The Act should try to regulate and put safeguards in relation to AI technology, and not try to control the AI boom in India.
Recently, in March 2024, the Meity had issued an AI Advisory. The advisory had come after a scandal related to the Gemini (Google’s GenAI) had generated an opinionated and insulting reply to input prompt in relation to a question pertaining to a prominent Indian Politician. Furthermore, there has been a blatant increase in the use of Deep Fakes by prominent figures of the Entertainment Industry[27] as well as the Indian Politicians. The use of generative AI to mislead the common population during the sensitive election period has created a new chaos and malice in the political arena.[28]
V. The Way Forward
The relationship between AI and Privacy is indeed complex and multifaceted. The rapid growth and widespread adoption of AI systems, algorithms, and tools by both corporations and individuals have given rise to a unique set of challenges that require careful consideration and strategic action. The introduction of separate data privacy and AI legislations in various jurisdictions around the world is a testament to the recognition of these challenges and the need for effective regulatory frameworks.
It is noteworthy that many existing data protection Acts do not explicitly address the use of AI or the potential privacy violations that may arise from AI systems. This is a significant gap that needs to be addressed to ensure comprehensive protection of individual privacy rights in the age of AI.
To navigate the complex intersection of AI implementation and privacy protection, a two-pronged approach is necessary:
Harmonization of AI and Data Protection Regulations:
It is crucial that the regulations governing AI and data protection are aligned and work in harmony with each other. This requires a coordinated effort from policymakers, regulators, and stakeholders across both domains. AI regulations should incorporate strong data protection principles, while data protection laws should specifically address the unique challenges posed by AI, such as algorithmic bias, transparency, and accountability. By ensuring that these regulations are in sync, a more robust and comprehensive framework can be established to safeguard individual privacy rights in the context of AI.
Regulation of Data Collection and Usage for AI Training:
The development and performance of AI systems heavily rely on the data used to train them. Therefore, it is essential to regulate the collection, processing, and use of data for AI training purposes. This includes implementing strict data governance practices, such as obtaining explicit consent from individuals, ensuring data accuracy and quality, and applying appropriate security measures to protect sensitive information. Additionally, there should be clear guidelines and restrictions on the sharing and transfer of data used for AI training, especially when it involves personal or sensitive information. By regulating the data that fuels AI systems, we can mitigate the risks of privacy violations and ensure that AI is developed and deployed in a responsible and ethical manner.
In conclusion, addressing the complex relationship between AI and privacy requires a holistic and proactive approach. By harmonizing AI and data protection regulations and establishing clear guidelines for the collection and use of data in AI training, we can create a framework that promotes the responsible development and deployment of AI while safeguarding individual privacy rights. It is essential for policymakers, industry leaders, and society as a whole to collaborate and engage in ongoing dialogue to navigate this critical intersection and ensure that the benefits of AI are realized without compromising the fundamental right to privacy.
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8moI appreciate the two-pronged approach you propose for navigating this complex area. Harmonizing AI and data protection regulations alongside regulating data collection for AI training seem like crucial steps forward.
Cyber Advocate - at District and Session Court, MALKAPUR and JMFC & CJJD Court, MALKAPUR. BULDANA. M.S. INDIA-443101
9moGreat advice!
Notary, Government of India
9mo🙏🙏
Navigating the intersection of AI and data privacy requires a nuanced approach to ensure both innovation and protection are prioritized.
Insightful!