Personal data and artificial intelligence: Legal and ethical aspects in the era of rapid IT development

The modern era brings rapid development of information technologies, and artificial intelligence (AI) is becoming increasingly present in various areas of life and work. This technology relies on accelerated data transfer and large databases (datasets) for training and improving its models. These databases often contain citizens' personal data, including highly sensitive information, which raises numerous questions regarding privacy and data protection in the process of creating AI-based software solutions. This paper analyzes the key challenges of personal data protection in the development of AI, with particular attention to the risks of identifications, data leakage, and ethical dilemmas. We will also present the relationship between the AI Act and the GDPR as the main legal frameworks in the EU, which current represent the highest level of regulation in these fields worldwide. Preserving privacy, including anonymization, represents a crucial issue in the era of accelerated AI development. Through the analysis of case studies and best practices, aiming to achieve a balance between technological progress and the protection of individuals' fundamental rights. The results indicate the need for continuous development and implementation of innovative approaches that enable the advancement of AI while preserving user privacy.