AI and privacy concerns: a smart meter case study

Purpose The purpose of this paper is to demonstrate privacy concerns arising from the rapidly increasing advancements and use of artificial intelligence (AI) technology and the challenges of existing privacy regimes to ensure the on-going protection of an individual’s sensitive private information. The authors illustrate this through a case study of energy smart meters and suggest a novel combination of four solutions to strengthen privacy protection. Design/methodology/approach The authors illustrate how, through smart meter obtained energy data, home energy providers can use AI to reveal private consumer information such as households’ electrical appliances, their time and frequency of usage, including number and model of appliance. The authors show how this data can further be combined with other data to infer sensitive personal information such as lifestyle and household income due to advances in AI technologies. Findings The authors highlight data protection and privacy concerns which are not immediately obvious to consumers due to the capabilities of advanced AI technology and its ability to extract sensitive personal information when applied to large overlapping granular data sets. Social implications The authors question the adequacy of existing privacy legislation to protect sensitive inferred consumer data from AI-driven technology. To address this, the authors suggest alternative solutions. Originality/value The original value of this paper is that it illustrates new privacy issues brought about by advances in AI, failings in current privacy legislation and implementation and opens the dialog between stakeholders to protect vulnerable consumers.