Article

Unlocking AI’s potential through privacy

Privacy by design: A strategic imperative for trust and innovation

June 05, 2025
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Artificial intelligence Cybersecurity

In today’s rapidly evolving technological landscape, artificial intelligence (AI) stands as a transformative force, promising unprecedented opportunities for businesses across all sectors. However, realizing the full potential of AI hinges on embedding robust privacy considerations at its core. Treating privacy as an afterthought is not only a compliance risk but also a significant threat to consumer trust and long-term viability.

For too long, the narrative around AI has often pitted innovation against privacy. Concerns about restrictive regulations, limited data access and increased compliance costs have fueled this perception. However, this viewpoint fundamentally misunderstands the evolving landscape. Privacy, when strategically integrated into the AI lifecycle, acts as a powerful enabler, fostering trust, enhancing regulatory compliance and driving innovation.

A privacy-first approach: Unlocking value and mitigating risk

Implementing a privacy by design (PbD) approach is no longer optional; it is a strategic imperative. By embedding privacy considerations from the initial stages of AI development, your organization can realize significant benefits:

Building customer trust

In today’s data-conscious world, consumers are increasingly discerning about how their information is used. The Cisco 2024 Consumer Privacy Survey reveals that 75 per cent of consumers will not purchase from organizations they don’t trust with their data. This conclusion demonstrates that a clear commitment to privacy not only boosts brand reputation but also cultivates lasting customer loyalty.

Aligning compliance with global privacy regulations

Navigating the complex web of regulations like the EU General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) is crucial to avoid hefty fines and legal repercussions. A privacy-first approach proactively addresses these requirements, enhancing ongoing compliance.

Driving cost savings and efficiency

Retrofitting privacy measures into existing AI systems is often expensive and inefficient. However, embedding privacy from the outset is cheaper, more efficient and aligned with regulatory guidance.

Enhancing data quality and AI performance

By adhering to principles like data minimization and obtaining proper consent, your organization can work with higher-quality, more relevant data, leading to improved AI model performance.

Mitigating data risks and enhancing security

Integrating privacy safeguards from the beginning helps protect AI systems from cyberthreats and mitigates the risk of data breaches. Implementing measures such as data minimization, pseudonymization, anonymization and privacy-enhancing technologies (PETs) further increases AI’s resiliency.

Key considerations for privacy-conscious AI development

To integrate privacy into AI initiatives, your organizations must adopt a comprehensive approach that includes:

Conducting thorough privacy impact assessments (PIAs): Understanding the potential risks to individuals’ privacy throughout the AI lifecycle.

Defining clear consent requirements: Assisting individuals in understanding how their data will be used and providing them with meaningful choices.

Implementing data minimization and purpose limitations: Collecting only the data that is strictly necessary for the specific AI purpose and retaining it only for as long as required.

Leveraging privacy-enhancing technologies (PETs): Exploring and implementing techniques like format-preserving encryption, homomorphic encryption, secure multiparty computation, differential privacy and federated learning to protect data confidentiality.

Embracing transparency and explainability: Fostering user trust; enabling ethical evaluation and supporting accountability through openness and clarity in the design, development and deployment of AI systems; and providing the reasoning and justification behind AI decisions.

Collaborating across functions: Achieving effective privacy integration requires close collaboration between IT, legal, compliance and business teams, with IT professionals playing a vital role in implementing privacy and leading security practices throughout the AI system development lifecycle.

The cornerstone of responsible and trustworthy AI advancement is a privacy-first approach.

Ultimately, a proactive focus on privacy is not just a component of responsible AI but a fundamental necessity for its long-term viability and ethical advancement. Integrating privacy considerations from the very beginning of AI integration proves to be more cost-effective and legally aligned, transforming regulatory compliance into a key strategic advantage.

By prioritizing the integration of PbD and managed consent, diligently adhering to global privacy regulations and implementing robust PETs, your organization can significantly reduce data-related risks, cultivate strong user trust and enhance its overall brand reputation. This commitment to privacy is indispensable for establishing a resilient and trustworthy AI ecosystem that unlocks the transformative potential of AI while protecting individual rights and fostering sustained innovation.

Ready to develop a responsible and resilient AI strategy for your business? Learn more about RSM’s AI governance services or contact our team today.

Risk assessments

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