In 2026, AI is embedded in everyday work and personal life, silently processing vast amounts of personal and behavioral data. This blog explains how India’s Digital Personal Data Protection Act (DPDPA) regulates AI data usage through principles like purpose limitation, data minimization, consent, accountability, and the right to erasure (machine unlearning). Using real-world examples, it shows how common AI activities—meeting transcription, customer communications, emotional support bots, and children’s AI tutors—trigger legal obligations under DPDPA. The article also highlights how privacy automation tools like ARC help organizations manage AI risks, consent lifecycles, and vendor compliance in a data-driven world.