Legal updates and opinions
News / News
AI and the Data Privacy Elephant in the Room
“The real problem is not whether machines think, but whether men do.” – B.F. Skinner
by Ahmore Burger-Smidt, Director and Head of Regulatory
Insights from the 2025 Report: AI Risk & Readiness in the Enterprise[1] Underlines the exponential threat that is not being addressed by AI progress. Data Privacy, a pressing issue that demands immediate attention!
From data leaks to regulatory “blind spots to shadow AI running amok“, the report highlights the fact that there are risks that cannot be ignored while organisations move towards the adoption of AI.
But what are these risks? More importantly, the question should be asked how to identify these risks.
Understanding and visibility into how AI models interact with personal data and sensitive personal data are crucial in identifying risks from a data privacy perspective. Without such insight, organisations will remain blind to data privacy risks within their environment, significantly increasing the risk associated with exposure to unauthorised use, access or further processing of personal information and data breaches.
The more data an AI model relies on, the higher the risk of exposing personal data and sensitive personal information. Shadow AI, meaning unauthorised or unmonitored AI use and tools, further compounds the above risk by operating outside of the organisation’s security visibility.
One of the core outcomes of the Report is the alarming statistic that 69.5% of organisations surveyed rank AI-powered data leaks as their biggest security concern.
As such, data leaks remain the most feared threat, informed by AI’s interaction with unstructured data and the rise of unauthorised models. But what to do?
Mitigating against data privacy breaches requires an understanding of what specific data is used for the particular AI model. Also, what the internal and external rules are in relation to the use of personal data and what the lawful basis is for doing so.
Organisations must conduct data privacy impact assessments to gain the necessary insight into privacy risk when considering AI. These assessments are a powerful tool in limiting the risk of exposure and detecting rogue model activity that could result in a data breach. Therefore, they are a crucial part of ensuring compliance with privacy legislation and protecting data subject rights.
The message: Understand what data the AI model relies on.
_________________________________________________
[1] AI Risk & Readiness in the Enterprise- 2025 Report.pdf (accessed 11 July 2025)
_________________________________________________
Read more about our Regulatory practice area.
Latest News
Out with the Old: South Africa’s Proposed Overhaul of Exchange Controls and the Inclusion of Crypto Assets
by Janice Geel, Associate and Azraa Sidat, Candidate Attorney, reviewed by Natalie Scott, Director and Head of Sustainability On 17 [...]
Do not call me I’ll call you …… South Africa’s 2026 CPA Amendment Regulations: operationalising the national opt‑out regime for direct marketing and shifting day‑to‑day anti‑spam responsibility to the National Consumer Commission
by Ahmore Burger-Smidt, Director and Head of Regulatory The Consumer Protection Act Amendment Regulations, 2026 deliver the long‑awaited operational framework [...]
Business Rescue Applications Under Scrutiny: business rescue orders are not there for the taking!
by Eric Levenstein, Director and Head Insolvency & Business Rescue and Amy Mackechnie, Senior Associate This article considers the recent decision in [...]
The AI Arms Race and what it means for Competition Law: A new era or new focus
by Ahmore Burger-Smidt, Director and Head of Regulatory We are not in the habit of writing breathless technology briefings. That [...]
The AI Governance Stack and South Africa’s Draft National AI Policy: An Operational Gap in Search of a Framework
by Ahmore Burger-Smidt, Director and Head of Regulatory Author's Note I am presently reading Noah M Kenney's Governing Intelligence: Law, [...]
Speak now or forever hold your peace. The draft AI policy has been published and parties have 60 days to comment
by Ahmore Burger-Smidt, Director and Head of Regulatory On 10 April 2026, South Africa's Department of Communications and Digital Technologies [...]
