Artificial Intelligence and Privacy laws

Artificial Intelligence is no longer a futuristic concept. It is embedded in everyday decision-making, from credit scoring to surveillance, healthcare, and content moderation. Yet, as AI systems grow more powerful, they raise a fundamental question at the heart of modern regulation : Can AI innovation and data protection truly co-exist? This article critically examines that question within the evolving framework of India’s privacy and data protection laws. 

AI systems are trained on vast volumes of data across complex, multi-stage lifecycles, often involving personal and publicly available information. In contrast, data protection laws are built on transparency, purpose limitation, and the individual’s ability to exercise control over how their data is collected, processed, and retained. This mismatch creates legal and practical tensions particularly when determining accountability, lawful bases for processing, and compliance obligations across AI development and deployment. 

The article explores how personal data enters the AI lifecycle, the role and limits of anonymization, and the treatment of publicly available data under Indian law and the GDPR. It also examines contentious issues such as the legality of web scraping, the boundaries of consent, and the growing debate between legitimate interests and legitimate use and practical differences for businesses in India who had exposure to GDPR exemptions. Further, it clarifies the often-confused distinction between data fiduciaries and data processors in AI ecosystems. 

The article weighs the thought that over-regulation could stifle AI innovation, while under-regulation risks eroding privacy and public trust. Striking the right balance will define how responsibly and competitively India harnesses the power of artificial intelligence in the years ahead. 

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