Since the dawn of the digital age, privacy concerns have continued to grow in significance.
But the recent explosion in AI has only intensified these concerns, with 70% of businesses reporting at least a 25% annual increase in data generation. And this explosion in AI is radically changing how organisations approach privacy. Why? Because generating and analysing such extensive amounts of data raises new user consent and privacy questions, particularly when privacy laws are evolving so rapidly.
Against this backdrop, it’s never been more crucial to stay ahead of changing customer expectations and new regulatory evolutions. By doing so, organisations will be better placed to maximise the impact of their AI use, whilst staying aligned with customer data protection and compliance law changes.
How businesses leverage AI
AI-powered technologies offer a myriad of benefits. For one, their capacity for processing large datasets at speed is far beyond what a human could manually do. Tasks that would traditionally take a whole team to handle can be done by a singular programme, in much less time, while also accounting for human errors. In terms of data handling and processing, AI reduces the need to manually extract value. It also provides instantaneous, real-time feedback, allowing organisations to better predict user behaviour.
Companies can also use AI tools to keep pace with new regulations; for instance, by deploying AI to check evolving regulations and automatically share updates with stakeholders. Organisations that want to take this further can even use AI to monitor data usage and detect anomalies – thereby identifying potential risks.
The changing world of privacy laws
While adopting AI can help organisations stay ahead of compliance challenges, it’s equally vital to consider the impact it can have on existing security laws. The vast majority of the world already has legislation pertaining to data privacy, and now we are beginning to see this extend to AI. In the EU, for instance, approval has been secured from the European parliament to establish an AI Regulatory framework. There will be more change and regulation that follows in the coming years, likely putting new pressures and restrictions on AI development and deployment.
The bottom line is that integrating AI comes with complex challenges to how an organisation approaches data privacy. A significant part of this challenge relates to purpose limitation – specifically, the disclosure provided to consumers regarding the purpose(s) for data processing and
the consent obtained. To tackle this hurdle, it’s vital that organisations maintain a high level of transparency that discloses to users and consumers how the use of their data is evolving as AI is integrated.
Alongside this, the potential AI bias is another critical area of concern. Without consistent monitoring and human guidance, there is the potential for an AI system to show bias toward or against a particular demographic of people. If left unaddressed, this could have huge consequences such as leaving some unable to get mortgage offers, or attend their university of choice.
These challenges demonstrate why consistent monitoring of the AI landscape, as well as having a strategy in place to address new regulatory changes, should be top of mind for organisations when integrating the technology.
The importance of a user first mindset
Just as the technology landscape has evolved, so have consumer expectations. Today, consumers are more conscious of and concerned with how their data is used. Adding to this, nearly two-thirds of consumers worry about AI systems lacking human oversight, and 93% believe irresponsible AI practices damage company reputations. As such, it’s vital that organisations are continuously working to maintain consumer trust as part of their AI strategy.
With this said, there are many consumers who are willing to share their data as long as they receive a better personalised customer experience, showcasing that this is a nuanced landscape that requires attention and balance.
Achieving that balance can only be achieved if organisations are committed to transparency, informed consent, and customer control. Communicating clearly around data practices and accessibility, rather than burying information in the fine-print, is a necessity. When it comes to consent, it’s important for the process as an ongoing discussion that maintains pace with new AI regulatory laws and requirements. For customer control, it’s important to provide users with the choice to opt in or out, access, correct, and delete their information. This is particularly important given the potential for inaccurate data to lead to incorrect AI results. Addressing all of these aspects can help organisations build trust while harnessing the power of AI for business growth.
Whilst safeguarding customer data privacy is complex, it is a non-negotiable. However, it also should never hinder AI adoption. Organisations can balance innovation and compliance, leveraging AI to boost growth and enhance customer experiences whilst preserving stakeholder trust.
About the Author
Heather Dunn Navarro is Vice President, Product and Privacy, Legal, G & A at Amplitude. We help companies unlock the power of their products – https://amplitude.com
Featured image: Adobe
