Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Sunday, 11 May 2025

How data protection rules pose hurdles

 How data protection rules pose hurdles for advertisers to leverage AI

Extract from the article:
India’s ambitious data protection regulations, including the Digital Personal Data Protection Act, have introduced substantial friction points for advertisers aiming to leverage artificial intelligence for marketing and consumer engagement. At the heart of the challenge is the law’s stringent data minimisation principle — a mandate to collect only the minimum personal data necessary — which constrains the vast datasets that AI algorithms typically require to deliver precise predictive analytics. This legal hurdle effectively places a cap on AI’s potential to glean deep consumer insights from behaviour patterns and demographic segments, thereby diminishing advertisers’ ability to personalise and optimise campaigns.

Furthermore, the law imposes significant compliance burdens on advertisers, who must now navigate complex consent architectures, data subject rights, and restrictions on cross-border data flows. The resulting operational overhead and legal uncertainty not only stifle innovation but also challenge the scalability of AI-driven advertising strategies. The article underscores a broader tension between protecting citizens’ privacy safeguards and fostering a data-driven economy reliant on sophisticated AI models, highlighting the critical balancing act regulators must perform.

My Take:
A. Will Difficult Become Impossible?
Reflecting upon my thoughts from back in 2018, I had sensed that enforcing any data protection law would become less a question of difficulty and more one of near impossibility. The global and decentralized nature of data ecosystems — sprawling across IoT devices, mobile apps, fintech, healthcare, and more — creates a labyrinth that is challenging to police. I had forewarned about the inevitable enforcement gridlock that arises when legislation demands compliance from millions of manufacturers and service providers scattered worldwide.

In this context, India’s current dilemma with AI in advertising is almost a case study validating my earlier apprehension. The law’s intentions are laudable, but practical enforcement, particularly against subtle algorithmic data usage in AI models, is fraught with gaps. Additionally, I emphasized the risk of systemic corruption that surges when unenforceable laws meet on-ground enforcement agencies. The article’s depiction of compliance burdens and the struggle to harness AI underlines this bottleneck perfectly — the complexity is real, and the consequences of poorly enforced regulation could ripple well beyond data privacy.

B. Privacy, Data Protection Law and the Sri Krishna Committee
In an earlier discussion featuring the insights of Shri B N Srikrishna, I highlighted the inherent difficulty courts face when interpreting nebulous legal terms such as "permission," "access," or "processing" within data protection statutes. These linguistic ambiguities are exacerbated in technology law, where the rapid advancement of AI and data analytics outstrips legislative drafting and judicial interpretation.

The article’s focus on advertisers struggling to reconcile AI’s insatiable data appetite with restrictive legal boundaries echoes my observation. AI’s relentless evolution means that any legal framework risks obsolescence the moment it is enacted. The hurdles for advertisers in India are symptomatic of this deeper structural flaw: laws crafted with imperfect definitions and hamstrung enforcement mechanisms attempting to govern technologies that evolve at digital warp speed. My earlier blog essentially suggested that unless laws are coupled with technologically savvy, dynamic interpretation and practical enforceability innovations, they will falter — a prophecy being played out now.

Call to Action:
To the policymakers and regulators entrusted with India’s data protection landscape: it is imperative to foster a balanced regulatory ecosystem that simultaneously safeguards citizen privacy and incentivizes innovation. I urge you to spearhead collaborative frameworks involving technologists, legal experts, and the advertising industry to evolve adaptable guidelines that can keep pace with AI’s technological shape-shifting.

Moreover, investing in regulatory tech—such as AI-powered compliance tools, transparency frameworks, and real-time audit mechanisms—will be crucial to overcoming enforcement deadlocks. Without this agile approach, the noble goal of privacy protection may inadvertently throttle the growth of AI-enabled digital economies, turning promise into perplexity. Let us not settle for impossible enforcement but strive for pragmatic regulation that empowers both protection and progress.

With regards, 

Hemen Parekh

www.My-Teacher.in

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