Artificial IntelligenceTechnology LawEdge AI: Challenges for Personal Data Protection

October 19, 20240

I recently attended the India Mobile Congress 2024 at Bharat Mandapam, New Delhi, Oct 15-18, 2024 and visited many stalls/booths where Edge AI is showcased for providing various solutions related to Automotive, Home Automation, Industrial Automation, Automotive solutions, and personal wellness.

While the development of edge AI offers significant advantages in terms of speed and efficiency, it raises critical concerns regarding data privacy and security. I feel that transferring personal data to external agencies, even if not immediately sensitive, could become a major issue with the implementation of DPDP Act in India.

This article provides an overview of Edge AI, and its real-world applications in sectors like healthcare, automotive, and retail. It highlights key legal and regulatory challenges, particularly in India, where AI-specific laws are still emerging.

What is Edge AI 

Edge AI refers to the processing of artificial intelligence algorithms locally on devices (i.e., “at the edge”), without requiring heavy reliance on cloud infrastructure. The computation happens in real time on devices like smartphones, IoT systems, or autonomous vehicles, enabling faster decision-making with minimal latency.

Key Characteristics of Edge AI:

  • Real-time processing: Decisions are made on the spot using data collected in real-time.
  • Decentralized approach: Unlike traditional AI, which processes data in the cloud, Edge AI keeps the data processing local, reducing data transfer time and improving privacy.
  • Lower latency: Especially important in sectors like healthcare or autonomous driving, where split-second decisions are critical.

Examples of Edge AI in Various Sectors

Healthcare: Edge AI enables wearable devices to monitor and provide real-time insights into patient health. For instance, AI-powered portable ultrasound devices analyze scans on the spot, helping doctors diagnose conditions in remote or resource-limited settings.

Automotive: In self-driving vehicles, Edge AI processes data from sensors to make split-second decisions about navigation, obstacle avoidance, and road safety. An example is Tesla’s autonomous driving system, which uses Edge AI for real-time environment perception.

 Retail: Edge AI is used in smart retail solutions, such as AI-powered cameras for customer behavior analysis, inventory management, and fraud detection in brick-and-mortar stores.

 Industrial Automation: Edge AI improves predictive maintenance in factories by analyzing machine data locally and predicting equipment failures before they occur, thereby minimizing downtime.

Examples of Edge AI Devices Inadvertently Sharing Personal Data

Here are some scenarios where edge AI devices might unintentionally or unknowingly share personal data:

Home Automation Devices

  • Smart speakers: If not configured securely, smart speakers can inadvertently record and transmit conversations, potentially capturing sensitive information like financial details or personal opinions.
  • Smart home hubs: These devices can collect and store data from various sensors in the home, including biometric data, location information, and energy consumption patterns. If compromised, this data could be accessed and misused.

Wearable Devices

  • Smartwatches: These devices often collect health data like heart rate, sleep patterns, and location information. If not protected properly, this sensitive data could be shared with unauthorized parties.
  • Fitness trackers: Similar to smartwatches, fitness trackers can collect personal health data that could be compromised if the device is not secure.

Automotive Systems

  • In-car infotainment systems: These systems often collect data about driving habits, location, and even personal preferences. If not secured adequately, this data could be used for targeted advertising or even stolen for fraudulent purposes.
  • Autonomous vehicles: These vehicles collect vast amounts of data, including sensor data, GPS coordinates, and driver behavior. If not handled securely, this data could be used to compromise the vehicle’s security or even the safety of its occupants.

Industrial IoT Devices

  • Smart factory equipment: These devices often collect data about production processes, equipment performance, and even employee activity. If not secured properly, this data could be used to compromise the factory’s operations or even steal intellectual property.

Common Vulnerabilities

  • Default passwords: Many devices come with default passwords that are easy to guess, making them vulnerable to unauthorized access.
  • Unpatched software: Outdated software can contain security vulnerabilities that could be exploited to access personal data.
  • Weak encryption: If the device uses weak encryption, it is easier for attackers to intercept and decrypt data.
  • Lack of privacy settings: Some devices may not have sufficient privacy settings to allow users to control the collection and sharing of their data.

It’s important to note that while these are potential risks, many manufacturers are taking steps to improve the security of edge AI devices. However, it’s still essential for users to be aware of these risks and take steps to protect their privacy.

Legal and Regulatory Issues in the Absence of AI-Specific Laws in India

India lacks comprehensive regulations tailored to artificial intelligence, including Edge AI, which creates legal uncertainties and risks across sectors:

Data Privacy: While the Digital Personal Data Protection Act, 2023 addresses personal data, it doesn’t specifically regulate how AI systems handle non-personal or anonymized data, raising privacy concerns in healthcare and automotive sectors where real-time data is critical.

Accountability and Liability: The absence of clear regulations complicates issues of liability. In cases involving accidents caused by autonomous vehicles or incorrect healthcare decisions made by Edge AI, there is no clear framework determining who is responsible—the AI developer, the manufacturer, or the service provider.

 Algorithmic Bias: Without AI-specific regulations, there is no formal requirement to audit AI systems for biases. For example, healthcare devices powered by Edge AI could unintentionally reinforce discrimination if their algorithms are trained on biased datasets, putting vulnerable groups at risk.

Intellectual Property: The lack of laws regarding the ownership of AI-generated content creates challenges in determining who holds IP rights to outcomes produced by AI in fields like healthcare or manufacturing

Possible Solutions to improve the security of edge AI devices.
It is imperative that companies offering edge AI solutions adopt stringent measures to protect user privacy and comply with relevant regulations. This includes:

  • Data minimization: Collecting only the necessary data for the intended purpose.
  • Data anonymization: Removing personally identifiable information from the data.
  • Data encryption: Protecting data in transit and at rest.
  • Consent mechanisms: Obtaining explicit user consent for data collection and processing.
  • Transparency: Providing clear information about data practices to users.
  • Accountability: Implementing robust data governance frameworks to ensure compliance with regulations.

Furthermore, it is essential to conduct thorough risk assessments to identify potential vulnerabilities and mitigate them proactively. This includes considering the types of personal data being collected, the sensitivity of the data, and the potential consequences of a data breach.

By addressing these concerns, companies can ensure that the benefits of edge AI are realized while safeguarding user privacy and complying with legal obligations.

CorpoTech Legal View

While Edge AI offers immense potential across healthcare, automotive, retail, and industrial automation sectors, the lack of AI-specific regulations in countries like India creates significant legal and regulatory uncertainties. Organizations deploying Edge AI must proactively address issues of privacy, accountability, and bias while keeping track of evolving regulations worldwide. As governments continue to develop AI laws, businesses need to ensure ethical AI practices and transparency to mitigate legal risks and enhance public trust in AI-powered technologies.

 

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