Legal Reugaltion Of Digital Identity And Aadhaar In The Era Of Artificial Intelligence (AI)
Author: LawSphereX
Category: Technology & Cyber Law
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LEGAL REUGALTION OF DIGITAL IDENTITY AND
AADHAAR IN THE ERA OF ARTIFICIAL INTELLIGENCE
(AI)
Shivani Karnawat, Sangam University, Bhilwara Dr. Vishnupriya Dadhich, Sangam University, Bhilwara
ABSTRACT
The rapid growth of digital technologies has transformed the way governments and private organisations deliver services, making digital identity an essential part of modern society. In India, the Aadhaar system has become the foundation of digital identity by providing a unique identification number linked to an individual’s demographic and biometric information. At the same time, Artificial Intelligence (AI) is increasingly being integrated into digital identity systems to improve authentication, detect fraud, and enhance the efficiency of public and private services. While these technological developments offer significant benefits, they also raise important legal, ethical, and privacy concerns.
The large-scale collection and processing of personal and biometric data create risks such as data breaches, identity theft, algorithmic bias, mass surveillance, and misuse of personal information. This article examines the legal regulation of digital identity and Aadhaar in the era of Artificial Intelligence by analysing the existing legal framework in India, including the Constitution of India, the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, the Information Technology Act, 2000, and the Digital Personal Data Protection Act, 2023. It also discusses significant judicial decisions, particularly the Justice K. S. Puttaswamy judgements, which recognised the right to privacy as a fundamental right and established constitutional safeguards for the Aadhaar system.
The article further explores the opportunities and challenges created by AI, compare India’s approach with international data protection frameworks, and suggests legal and policy reforms to ensure transparency, accountability, and effective protection of individual rights. It concludes that a balanced legal framework is essential to promote technological innovation while safeguarding privacy, data security, and constitutional values in the digital age. Keywords: Digital Identity, Aadhaar, Artificial Intelligence (AI), Data Protection, Right to Privacy.
1. Introduction
1.1 Meaning of Digital Identity
In the digital era, identity verification has become essential for accessing public and private services. Digital identity refers to the electronic representation of an individual’s personal information used for identification and authentication through digital platforms. It may include details such as name, date of birth, address, mobile number, biometric information, and digital records. Digital identity has improved access to services such as banking, healthcare, education, and e-governance. However, it also involves the collection and processing of personal data, creating concerns related to privacy, security, data misuse, and individual control over personal information. Therefore, proper legal regulation is necessary to ensure safe and accountable digital identity systems.
1.2 Evolution of Digital Identity in India
India’s digital identity journey has developed significantly as part of its digital transformation. Earlier, identity verification depended mainly on physical documents such as voter cards, ration cards, and passports. These methods faced challenges including duplication, fraud, and difficulty in reaching individuals without proper documentation. To address these issues, India introduced technology-based identity systems to improve identification, reduce fraud, and support digital governance. Initiatives such as Digital India and electronic service delivery increased the need for a secure and reliable identity framework.
1.3 Introduction to Aadhaar
Aadhaar is India’s major digital identity system, introduced through the Unique Identification Authority of India (UIDAI). It provides a 12-digit unique identification number linked with an individual’s demographic and biometric information, including fingerprints and iris scans. The main objective of Aadhaar is to improve the delivery of government benefits and services by reducing identity fraud and eliminating duplicate identities. It is widely used in welfare schemes, banking, taxation, mobile services, and digital authentication. However, Aadhaar has
also raised legal concerns regarding privacy, data protection, surveillance, and security of biometric information.
1.4 Rise of Artificial Intelligence (AI) in Governance
Artificial Intelligence (AI) has become an important technology in modern governance. AI enables computer systems to perform tasks such as learning, identification, decision-making, and data analysis. In digital identity systems, AI is used for biometric authentication, facial recognition, fraud detection, and identity verification. These technologies can improve efficiency, accuracy, and security. However, AI also creates challenges such as algorithmic bias, lack of transparency, automated decision-making, and risks to personal privacy.
1.5 Need for Legal Regulation of AI-Based Digital Identity
The growing use of AI in digital systems requires strong legal regulation to protect individual rights. Since these systems process sensitive personal and biometric data, there is a risk of privacy violations, cyber threats, and misuse of information. In India, laws such as the Aadhaar Act, 2016, Information Technology Act, 2000, and Digital Personal Data Protection Act, 2023 provide a framework for regulating digital information. However, the rapid development of AI requires further legal measures to address emerging challenges. The Supreme Court of India has also recognised the importance of privacy protection in the digital age. In Justice K. S. Puttawamy (Retd. ) v. Union of India (2017), the court recognised the right to privacy as a fundamental right under Article 21 of the constitution.
The Aadhaar judgement of 2018 further emphasised the need to balance technological development with the protection of individual rights. This article examines the legal regulation of digital identity and Aadhaar in the era of AI, focusing on privacy, data protection, judicial developments, challenges, and recommendations for creating a secure and rights-based digital identity framework in India.
1.6 Research Objectives
The main objectives of this research are:
1. To understand the concept and importance of digital identity in the modern digital era. 2. To examine the role of Aadhaar in India’s digital governance system. 3. To analyse the impact of Artificial Intelligence on digital identity systems. 4. To study the existing legal framework regulating Aadhaar and digital identity in India. 5. To examine privacy and data protection challenges related to AI-based identity systems. 6. To suggest legal and policy measures for creating a secure and accountable digital identity framework.
1. Understanding Digital Identity
2.1 Meaning and concept
Definition of digital identity Digital identity refers to the electronic representation of an individual’s identity that is used for identification and authentication through digital systems. Unlike traditional identity documents, digital identity exists in electronic from and allow individuals to access online services securely. It may include personal details such as name, date of birth, address, mobile number, photographs, biometric information, and digital records. Digital identity helps governments, financial institutions, and private organisations verify individuals and provide services efficiently. In India, Aadhaar is one of the largest examples of a digital identity system, where demographic and biometric information is used for identity verification.
2.2 Components of Digital Identity
The major components of digital identity include: 1. Personal Information: Basic details such as name, date of birth, address, and contact information that create an individual’s identity profile.
2. Digital Credentials: Electronic methods of verification, including passwords, digital certificates, electronic signatures, and mobile authentication. 3. Biometric Information: Unique physical characteristics such as fingerprints, iris patterns, and facial features used for identity verification. 4. Transaction Records: Digital records related to online activities, banking transactions, and service usage. 5. Authentication Mechanisms: Technologies such as OTP, biometric verification, facial recognition, and multi-factor authentication used to confirm identity. A secure digital identity system requires proper protection of these components because misuse
of personal information may affect privacy and security.
2.3 Digital Identity as a Human Right
Digital identity has become closely connected with access to essential services and social participation. Although Indian law does not recognise a separate fundamental right to digital identity, it is linked with constitutional rights such as privacy and equality. In Justice K.S. Puttasamy (Retd.) v. Union of India (2017), the Supreme Court recognised the right to privacy as a fundamental right under Article 21. The judgement established that individuals have control over their personal information and that data collection must follow principles of legality, necessity, and proportionality. Digital identity also supports Article 14 by promoting equal access to government services and welfare schemes. However, poorly designed systems may create exclusion; therefore, digital identity must be developed with privacy protection, security, and accessibility.
2.4 Importance of Digital Identity
Digital Governance: Digital identity helps governments provide services faster and more efficiently. It reduces paperwork, avoids duplicate records, and ensures that benefits reach the correct people. In India, Aadhaar supports services like Direct Benefit Transfer (DBT) and improves public service delivery. • Financial Inclusion: Digital identity makes banking services easier to access, especially for rural people. Aadhaar based e-KYC helps in opening bank accounts, using digital payments, and accessing financial services. • E-Governance: Digital identity helps people use government services online. It allows citizens to apply for documents, pay taxes, and receive government benefits digitally with secure verification. • Healthcare: Digital identity helps maintain accurate patient records and improves healthcare services.
However, strong security is needed to protect sensitive health information. • Education: Digital identity helps schools and colleges verify students, manage records, provide scholarships, and support online education.
2.5 Challenges of Digital Identity
Ø Identity Theft: Personal information can be stolen and misused for fraud, illegal activities, or financial loss. Ø Data Breaches: Digital identity systems store sensitive information, which can be targeted by hackers. Biometric data needs extra protection because it cannot be easily changed. Ø Cyber Fraud: Threats like phishing, fake identities, and unauthorised access can misuse digital identities. Strong cyber security is needed to prevent these risks. Ø Surveillance: Excessive collection of personal data may lead to privacy concerns. Proper laws and transparency are needed to protect users. Ø Digital Exclusion: People without internet access, digital skills, or proper technology may face difficulties using digital identity services. Alternative methods should be available to
ensure everyone can access services.
3. AADHAAR: INDIA’S DIGITAL IDENTITY FRAMEWORK
3.1 Establishment of UIDAI:
Aadhaar is a digital identity system introduced in India to provide every resident with a unique identity number. It was created to improve access to government services and reduce problems like fake and duplicate identities. The Unique Identification Authority of India (UIDAI) was established in 2009 to manage the Aadhaar system. Later, Aadhaar received legal recognition through the Aadhaar Act, 2016. UIDAI is responsible for Aadhaar enrolment, authentication, security, and protection of identity data. Aadhaar changed the traditional identity system by providing a digital identity that can be verified electronically across India.
3.2 Objectives of Aadhaar
1. Better Delivery of Services: Aadhaar helps government benefits reach the correct people
by reducing fraud and delays.
2. Prevent Fake Identities: Biometric information helps create a unique identity for each person
and reduces duplication.
3. Financial Inclusion: Aadhaar helps people access banking and financial services easily.
4. Digital Governance: It supports online government services and improves administrative
efficiency.
5. Easy Identity Verification: Aadhaar allows quick verification without carrying multiple
documents.
3.3 Features of Aadhaar
A. Unique Identification Number: Aadhaar provides a 12-digit unique number to residents of
B. Biometric Authentication: Aadhaar uses biometric details such as fingerprints and iris scans
for identity verification. This improves security but also requires strong protection because biometric data cannot be changed if stolen. C. Demographic Information: Aadhaar stores basic details such as name, date of birth, gender,
address, and contact information. This information helps in verification and communication while requiring proper privacy protection.
3.4 Uses of Aadhaar
A. Welfare Schemes: Aadhaar helps government schemes identify genuine beneficiaries and
reduce fraud in services like pensions, scholarships, and subsidies. B. Banking: Aadhaar-based e-KYC makes it easier to open bank accounts and access financial
services, especially for people without traditional documents. C. Income Tax: Aadhaar helps improve transparency in taxation by linking identity records and
reducing misuse of multiple identities. D. Direct Benefit Transfer (DBT): Aadhaar helps transfer government subsidies and benefits
directly to beneficiaries’ bank accounts, reducing delays and leakages. E. DigiLocker: Aadhaar supports digital document services by helping users access and store
important documents online. F. E-KYC: Aadhaar-based e-KYC allow organisations to verify identity electronically, reducing
paperwork and saving time.
3.5 Benefits and Limitations of Aadhaar
3.5.1 Benefits of Aadhaar
1. Improve Service Delivery: Helps provide government services faster and more efficiently.
2. Reduction in Fraud: Reduces fake identities and duplicate records.
3. Financial Inclusion: Makes banking and digital payments more accessible.
4. Digital Development: Supports online services and digital governance.
5. Citizen Convenience: Provides a single identity number for multiple services.
3.5.2 Limitation of Aadhaar
1. Privacy Issues: personal and biometric data mat create concerns about misuse.
2. Security Risks: Aadhaar databases can be targeted by cyber-attacks.
3. Authentication Problems: Technical errors or biometric failures may prevent access to
services.
4. Digital Exclusion: People with limited digital knowledge or poor internet access may face
difficulties.
5. Surveillance Concerns: Extensive use of Aadhaar raises concerns about excessive monitoring
of individuals.
4. ARTIFICIAL INTELLIGENCE AND DIGITAL IDENTITY
4.1 Meaning of Artificial Intelligence (AI)
1. Artificial Intelligence (AI) is a technology that enables machines to perform tasks that usually
require human intelligence, such as learning, analysing data, recognising patterns, and making decisions. AI systems use data and algorithms to improve their performance and provide accurate results.
2. AI is becoming important in digital governance because it helps improve service delivery,
detect fraud, and increase security. In digital identity systems like Aadhaar, AI is used for biometric verification, identity checking, and improving authentication processes. However, the use of AI also creates concerns related to privacy, security, and responsible use of personal data.
4.2 AI Applications in Aadhaar
1. Facial Recognition: AI-based facial recognition helps verify a person’s identity by analysing
facial features. It can be useful when fingerprint or iris authentication fails. However, it may
create privacy concerns and errors in identification.
2. Biometric Authentication: AI improves biometric verification by analysing fingerprints, iris
patterns, and other personal features. It makes identity checking faster and more secure but requires strong protection because biometric data is sensitive.
3. Fraud Detection: AI can identify unusual activities, fake identities, and suspicious
transactions by analysing large amounts of data. It helps reduce fraud and improve the security of digital identity systems.
4. Identity Verification: AI helps confirm whether a person is genuine by checking personal
and biometric information. It reduces paperwork and allows faster access to services like banking and government facilities.
5. Automated Decision-Making: AI systems can analyse information and assist in decisions
related to identity verification and risk detection. However, human supervision is needed to ensure fairness and prevent incorrect decisions.
4.3 Advantages of AI in Digital Identity Systems
1. Faster Verification: AI can verify identities quickly by analysing information within
seconds. This helps people access services more easily and reduces delays.
2. Reduced Fraud: AI helps detect fake identities, suspicious activities, and unauthorised
access, making digital identity systems more secure.
3. Better Public Service Delivery: AI helps governments manage data, identity beneficiaries,
and deliver services more effectively. It improves transparency and reduces errors in welfare programmes.
4.4 Risks And Challenges of AI in Digital Identity
1. Algorithmic Bias: AI systems may produce unfair results if they are trained on biased data.
This can lead to incorrect identification and unequal treatment of users.
2. False Positives: Sometimes AI may wrongly identify a genuine person as suspicious. This can
prevent people from accessing important services.
3. Mass Surveillance: The use of AI and biometric data may create privacy concerns if personal
information is collected or monitored excessively.
4. Deepfakes: AI can create fake images, videos, or voices that may be used to impersonate
people and commit identity fraud.
5. Identity Manipulation: Criminals may misuse AI to alter or steal personal information and
create fake identities. Strong cyber-security and data protection measures are needed to prevent such risks.
5. Legal Framework Governing Digital Identity in India
Digital identity systems in India, such as Aadhaar, use personal and biometric data. Therefore, strong laws are needed to protect privacy, security, and the rights of citizens. The legal framework includes constitutional provisions, important laws, and regulatory authorities.
5.1 Constitutional Provisions
Article 14 – Right to equality: Article 14 ensures that everyone is treated equally before the law. Digital identity systems and AI-based verification should not discriminate against any person. If technology wrongly rejects someone, they should have another way to access government or private services. Article 19 – Freedom of Speech and Expression: Article 19(1) (a) protects the right to express opinions freely. Digital identity systems should support safe access to online services without creating unnecessary surveillance or fear that may stop people from expressing themselves. Article 21- Right to Life and Privacy: Article 21 includes the right to privacy, as recognised by the Supreme Court in the Justice K. S. Puttaswamy v. Union of India (2017) case. Personal data should be collected only for lawful purpose and must be protected from misuse.
This judgement became the foundation of India’s data protection laws.
5.2 Statutory Law
1. Aadhaar Act, 2016: The Aadhaar Act provides the legal framework for Aadhaar and
establishes the UIDAI. It regulates Aadhaar enrolment, authentication, and protection of
personal information. In the Puttaswamy (Aadhaar) Case (2018), the Supreme Court upheld Aadhaar but limited its use mainly to government welfare purposes.
2. Information Technology Act, 2000: The IT Act provides legal protection against cyber
offences, data theft, and unauthorised access to computer systems. It also supports electronic authentication and cyber-security for digital identity systems.
3. Digital Personal Data Protection Act, 2023: The DPDP Act regulates the collection and
processing of personal data. It require lawful processing, gives individuals rights over their data, and makes organisations responsible for protecting personal information. It also establishes the Data Protection Board of India.
4. IT Rules, 2011: These rules require organisations to protect sensitive personal information,
such as biometric and financial data. They also require consent before collecting sensitive information and the use of reasonable security measures.
5.3 Regulatory Authorities
A. Unique Identification Authority of India (UIDAI): UIDAI manages the Aadhaar system. It
issues Aadhaar numbers, maintains the Aadhaar database, regulates authentication services, and protects Aadhaar information. B. Ministry of Electronics and Information Technology (Meity): Meity is responsible for
digital governance, cyber-security, data protection policies, and promoting the safe use of technologies such as AI. C. Data Protection Board of India: The Data Protection Board was created under the DPDP
Act, 2023. It investigates data breaches, handle complaints, ensures compliance with data protection laws, and can impose penalties for violations.
6. Privacy and Data Protection Issues
Digital identity systems like Aadhaar and AI-based identity verification collect and use large amounts of personal and biometric data. While these technologies improve digital services, they also raise concerns about privacy, data security, and misuse of personal information. Therefore, proper legal safeguards are necessary to protect people’s rights.
6.1 Right to Privacy: The right to privacy is a fundamental right under Article 21 of the
constitution, as recognised by the Supreme Court in Justice K.S. Puttaswamy v. Union of India (2017). The Court held that personal data should be collected only for a lawful purpose and in a fair and necessary manner. The Aadhaar judgement (2018) also stressed the need to protect citizens’ privacy while using digital identity systems.
6.2 Consent: Consent means that people should know why their personal data is being collected
and agree to its use. Under the Digital Personal Data Protection Act, 2023, organisations must provide clear information, obtain valid consent where required, and allow individual to withdraw their consent. This is especially important when AI is used to process personal data.
6.3 Data Collection: Digital identity systems collect information such as name, address,
fingerprints, and iris scans for identity verification. Only the minimum amount of data needed for a specific purpose should be collected. Unnecessary collection of personal information may increase privacy risks and misuse.
6.4 Data Storage: Personal and biometric data must be stored securely because it is highly
sensitive. Organisations should use encryption, access controls, regular security checks, and secure databases to prevent unauthorised access or data breaches.
6.5 Data Sharing: Personal data should be shared only for lawful and authorised purposes.
Organisations must ensure transparency, protect confidential information, and prevent unauthorised disclose. The DPDP Act, 2023 provides rules for responsible data sharing and processing.
6.6 Cyber-security Risks: Digital identity systems are exposed to cyber threats such as:
Data breaches—unauthorised access to personal information. • Identity theft—misuse of stolen personal or biometric data. • Phishing attacks—fake messages or websites used to steal information. • AI-based cyber-attacks—use of AI for deepfakes or advanced online fraud. ü Strong cyber-security measures, regular audits, and encryption are essential to reduce these
risks.
6.7 Ethical Issues in AI: The use of AI digital identity systems raises important ethical concerns,
including: • Algorithmic bias – AI may produce unfair results if trained on biased data. • Lack of transparency – people may not understand how AI makes decisions. • Human oversight – important decisions should not rely only on AI; human review should be available. • Surveillance concerns – AI technologies like facial recognition should not be used for excessive monitoring. • Accountability – organisations using AI must be responsible for errors, misuse, and data protection.
7. Key Case Laws Related to Digital Identity and Aadhaar in the Era of Artificial
Intelligence (AI)
7.1 Justice K.S. Puttaswamy (Retd.) v. Union of India (2017) 10 SCC 1
The hon’ble Supreme Court recognised the Right to Privacy as a fundamental right under Article 21 of the Constitution. The Court held that any collection or use of personal data must satisfy the principles of legality, necessity, and proportionality. This judgement laid the constitutional foundation for protecting personal data and regulating digital identity systems such as Aadhaar and AI-based technologies.
7.2 K.S. Puttaswamy (Aadhaar-5J) v. Union of India (2018) 1 SCC 809
The hon’ble Supreme Court upheld the constitutional validity of the Aadhaar Act, 2016, stating that Aadhaar is valid for delivering government welfare schemes and subsidies. However, the Court restricted its mandatory use by private companies and emphasised that personal and biometric data must be protected to safeguard the right to privacy.
7.3 Anuradha Bhasin v. Union of India (2020) 3 SCC 637
The hon’ble Supreme Court held that freedom of speech and expression through the internet is protected under Article 19 (1) (a) of the Constitution. The Court ruled that restrictions on internet access must be lawful, necessary, and proportionate, highlighting the importance of internet access for digital governance and digital identity services.
7.4 Shreya Singhal v. Union of India (2015) 5 SCC 1
The hon’ble Supreme Court struck down Section 66A of the Information Technology Act, 2000, holding that it violated the right to freedom of speech and expression under Article 19(1) (a). The Court observed that vague and arbitrary restrictions on online communication are unconstitutional, strengthening digital rights and freedom of expression in India.
7.5 People’s Union for Civil Liberties (PUCL) v. Union of India (1997) 1 SCC 301
The hon’ble Supreme Court held that telephone conversations are protected under the right to privacy under Article 21 of the Constitution. The Court ruled that government surveillance including telephone tapping, must be authorised by law and follow proper safeguards to prevent misuse. This judgement laid the foundation for protecting privacy against unlawful surveillance and remains relevant for AI-based monitoring, facial recognition, and digital identity systems.
8. Challenges in Regulating AI and Aadhaar
The use of Artificial Intelligence (AI) with Aadhaar has improved digital identity verification and public services. However, it also creates legal, technical, and ethical challenges. Since these systems use personal and biometric data. Strong regulation is necessary to protect privacy security, and individual rights.
8.1 Lack of AI-Specific Law: India does not yet have a separate law specifically regulating AI.
biometric data. If this data is leaked or hacked, it can lead to identity theft and fraud. Strong cyber-security measures, encryption, and regular security adults are essential to protect such information.
8.3 Weak Consent Mechanisms: Many people do not fully understand how their personal data is
collected or used. In some cases, they may have no real choice but to share their information to access essential services. Clear privacy notices, informed consent, and the option to withdraw consent can improve data protection.
8.4 Mass Surveillance: AI technologies such as facial recognition and biometric monitoring may
lead to excessive surveillance if used without proper legal safeguards. Any use of surveillance technology should be lawful, necessary, and proportionate to protect the right to privacy.
8.5 Cross-Border Data Transfer: Personal data used by AI system may be stored or processed
outside India. Different countries have different data protection laws, which may affect the security of citizens’ information. Proper legal safeguards are needed before transferring data across borders.
8.6 AI Bias: AI systems may produce unfair or discriminatory results if they are trained on biased
or incomplete data. In digital identity systems, this can lead to incorrect identity verification or unequal access to services. Regular testing, diverse datasets, and human oversight can reduce AI bias.
8.7 Lack of Accountability: When an AI system makes a wrong decision, it is often unclear who
ensuring transparency, accountability, and strong data protection.
9. CONCLUSION
Digital identity systems, especially Aadhaar, have transformed governance and public service delivery in India by improving identity verification, financial inclusion, and access to government services. The integration of AI has further enhanced efficiency through technologies such as biometric privacy, data security, AI bias, surveillance, and misuse of personal information. The Indian Constitution and landmark judgement such as Justice K. S. Puttaswamy v. Union of India (2017) and K. S. Puttaswamy (Aadhaar) v. Union of India (2018) have established that digital identity systems must protect privacy, dignity, and other fundamental rights. These decisions emphasise that the use of technology must be lawful, transparent, and proportionate.
Although laws such as the Aadhaar Act, 2016, the information Technology Act, 2000, and the Digital Personal Data Protection Act, 2023 provide legal protection, India Still requires a stronger legal framework to regulate AI and ensure accountability, transparency, and fairness in automated decision-making. In the future, India should promote secure, inclusive, and rightsbased digital identity systems by strengthening data protection, improving cyber-security, ensuring human oversight of AI, and increasing public awareness. A balanced approach that encourages innovation while protecting constitutional rights will help build public trust and support the responsible use of AI and digital identity technologies.
10. RECOMMENDATIONS
10.1 Legal Recommendations
Introduce a separate AI Regulation Act to govern the development and use of AI. • Harmonise the Aadhaar Act, 2016 with the Digital Personal Data Protection Act, 2023 to strengthen data protection. • Create clear legal rules for the use of AI in biometric identification. • Impose strict penalties for misuse, unauthorised access, or leakage of Aadhaar and biometric data.
10.2 Policy Recommendations
Conduct regular independent audits of AI systems to identify bias and security risks. • Make AI Impact Assessments mandatory before deploying AI in digital identity systems. • Ensure transparency in AI-based decision-making by informing individuals how decisions are made. • Maintain human oversight so that important identity-related decisions are not made solely by
AI.
10.3 Technical Recommendations
Protect biometric information through strong encryption and secure storage. • Use Multi-Factor Authentication (MFA) to improve the security of digital identity systems. • Conduct regular cyber-security audits to identify and fix security weaknesses. • Follow the privacy-by-Design approach by including privacy and security measures form the initial stage of system development.
10.4 Institutional Recommendations
Strengthen the role of UIDAI in monitoring Aadhaar security and protecting personal data. • Empower the Data Protection Board of India to effectively investigate data protection violations and enforce compliance. • Establish an independent AI Regulatory Authority to supervise high-risk AI applications and promote ethical AI practices. • Create an effective grievance redress mechanism to resolve complaints related to AI-based identity verification.
10.5 Public Awareness Recommendation
Organise digital literacy programmes to educate citizens about Aadhaar, AI cyber-security, and
online safety. • Increase public awareness about privacy rights, consent, and data protection laws. • Improve transparency in Aadhaar authentication by providing clear information about how personal data is collected, used, and protected.
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