Abstract
The rapid integration of artificial intelligence into governance has transformed the manner in which governments, businesses, and individuals collect, process, and utilise personal information. While AI-driven systems offer significant benefits in areas such as public administration, healthcare, digital services, and decision-making, their dependence on extensive datasets creates substantial concerns relating to privacy, surveillance, autonomy, transparency, and accountability. This paper examines the constitutional and legal dimensions of privacy in the context of artificial intelligence and digital governance in India. It analyses the recognition of privacy as a fundamental right under Articles 14, 19, and 21, with particular emphasis on the principles established in Justice K.S. Puttaswamy v. Union of India. The paper further evaluates the Digital Personal Data Protection Act, 2023 and its role in regulating the processing of digital personal data while balancing individual rights with governmental and commercial interests. It also examines emerging challenges including algorithmic bias, opaque automated decision-making, predictive profiling, excessive data collection, and the difficulties associated with cross-border data flows. By considering India's developing regulatory approach alongside broader international developments, the study argues that technological advancement must remain consistent with constitutional values. It proposes greater transparency, explainability, human oversight, privacy-by-design, independent algorithmic audits, and stronger institutional regulation. The paper concludes that responsible AI governance should seek to harmonise technological innovation with privacy, dignity, autonomy, and democratic accountability.