STUDY OF THE IMPACT OF AI IN DATA PRIVACY

With an increased dependency on data-driven decision-making tools, data privacy has become a main concern in the digital year. Artificial intelligence (AI) has emerged as both an advance tool for data security and can be a threat to privacy. This paper tries to investigate the dual impact of AI on data privacy issues, trying to examine its role in data collecting, processing, and protection while also addressing concerns about scrutiny, bias, and illegal data access. AI-powered security solutions make better threat detection and regulatory compliance while also posing ethical and legal difficulties. AI combines data from multiple sources which create inclusive profile of individuals and also through De- anonymization process, AI can re-identify individuals from the massive anonymized data set. Subsequently the paper presents practical examples of real-world applications in Digi Locker, Smart Contract to give an insight on how AI can be integrated into the security system. The conclusion states that multifaceted approach to AI is necessary since it allows for a more comprehensive understanding of complex systems by considering various aspects like social, ethical and economic factors, for better decision-making. This study assesses AI’s impact on privacy rights, looks at major legislative frameworks such as the General Data Protection Regulation (GDPR) and the AI Act, and suggests ways for responsible AI deployment in data governance. The purpose of this paper is to present a comprehensive overview to protect the integrity of AI systems and ensure the security and privacy of the sensitive data they handle