From minimal information, AI systems can infer a person’s preferences and personality traits

ADV. (DR.) PRASHANT MALI, PHD,
CYBER LAW EXPERT- BOMBAY HIGH COURT

“There is an unprecedented wave of AI-driven innovation unfolding today. However, despite the rapid advancements, more than 90% of people still lack a clear understanding of AI’s true capabilities. While nearly 73% of Indian enterprises report adopting AI in some form, many are yet to meaningfully integrate or operationalize it. In effect, several organizations are either in the early adoption stage or simply engaging in conversations about AI without fully leveraging its potential. The AI market in India is projected to reach ₹1.4 lakh crore by 2027, reflecting the immense economic promise of the sector. At the India AI Impact Summit, several leaders described AI as a “five-layered cake,” emphasizing the multiple foundational components required for its development. Data lies at the core of this ecosystem, and India's vast volumes of it make the country an attractive destination for global AI players.

The same dynamic applies to emerging corporates as well. Their data-intensive AI systems rely on collecting, processing, and analyzing massive amounts of personal information. While companies may disclose that they collect a limited number of data points-say, ten fields in a form—the insights derived from those inputs can be far more expansive. From seemingly minimal information, AI systems can infer a person’s preferences, behavior patterns, aspirations, and even personality traits. So the issue is how do we innovate while protecting fundamental privacy rights. When an entity collects personal data, it is generally required to obtain clear, specific, and informed consent from the individual. However, in the context of AI systems, this principle becomes far more complicated. In many cases, individuals may not fully understand what aspects of their data will be processed, how long it will be retained, or how it may be used in future iterations of the system.”