Transformation of the personal data protection system under the influence of artificial intelligence technology development

Introduction. The rapid development of artificial intelligence technologies creates new challenges in personal data protection. With the widespread implementation of AI systems across various sectors of society, there is an unprecedented increase in the collection and processing of personal data, significantly elevating privacy risks. According to IBM's Cost of a Data Breach Report 2023, AI-related incidents lead to a 37% increase in average breach costs, highlighting the growing significance of this issue. The purpose of the paper is to investigate current challenges and issues in personal data protection arising from the development and implementation of artificial intelligence technologies, with particular focus on the transformation of existing protection mechanisms and regulatory frameworks. Results. The research identifies several key challenges in personal data protection related to AI systems, particularly the "black box" problem where AI decision-making processes become opaque and difficult to understand. The study highlights ethical concerns regarding large-scale data processing by AI systems, which can lead to privacy violations and discrimination. Analysis of current legal frameworks, including GDPR and the EU AI Act, reveals the importance of comprehensive regulation at both international and national levels. The research emphasizes the need for technical and organizational measures, including data encryption, anonymization techniques, and access control systems. The study also identifies the crucial role of international cooperation in developing unified standards for personal data protection in AI systems. Conclusion. The effective protection of personal data in the age of artificial intelligence requires a comprehensive approach combining legal regulation, technical measures, and international cooperation. The implementation of the «privacy by design» principle and the development of control mechanisms for compliance with data protection requirements are essential. The study emphasizes the importance of maintaining a balance between innovative technological development and the protection of fundamental human rights in data privacy.

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Publication Details

Journal
Economics Finances Law
Published
2025-02-28
DOI
https://doi.org/10.37634/efp.2025.2.24
Primary Topic
Digital Transformation in Law
Type
article
Field-Weighted Citation Impact
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article

Transformation of the personal data protection system under the influence of artificial intelligence technology development

Andrii Kolesnikov, Yaroslav CHAPELSKYI, Volodymyr BUDNYK, Yurii KOZHENOVSKYI
Economics Finances Law
Digital Transformation in Law
article

Transformation of the personal data protection system under the influence of artificial intelligence technology development

Andrii Kolesnikov, Yaroslav CHAPELSKYI, Volodymyr BUDNYK, Yurii KOZHENOVSKYI
article en

Abstract

Introduction. The rapid development of artificial intelligence technologies creates new challenges in personal data protection. With the widespread implementation of AI systems across various sectors of society, there is an unprecedented increase in the collection and processing of personal data, significantly elevating privacy risks. According to IBM's Cost of a Data Breach Report 2023, AI-related incidents lead to a 37% increase in average breach costs, highlighting the growing significance of this issue. The purpose of the paper is to investigate current challenges and issues in personal data protection arising from the development and implementation of artificial intelligence technologies, with particular focus on the transformation of existing protection mechanisms and regulatory frameworks. Results. The research identifies several key challenges in personal data protection related to AI systems, particularly the "black box" problem where AI decision-making processes become opaque and difficult to understand. The study highlights ethical concerns regarding large-scale data processing by AI systems, which can lead to privacy violations and discrimination. Analysis of current legal frameworks, including GDPR and the EU AI Act, reveals the importance of comprehensive regulation at both international and national levels. The research emphasizes the need for technical and organizational measures, including data encryption, anonymization techniques, and access control systems. The study also identifies the crucial role of international cooperation in developing unified standards for personal data protection in AI systems. Conclusion. The effective protection of personal data in the age of artificial intelligence requires a comprehensive approach combining legal regulation, technical measures, and international cooperation. The implementation of the «privacy by design» principle and the development of control mechanisms for compliance with data protection requirements are essential. The study emphasizes the importance of maintaining a balance between innovative technological development and the protection of fundamental human rights in data privacy.

Economics Finances LawVol. 2/2025(-)
West Ukrainian National University (UA)
Openalex Percentile: Top 93%
Digital Transformation in Law
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