Understanding How AI Uses Children’s Data — And How to Stay Protected

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We are all trying to figure out how to handle the rise of AI tech collecting personal data and the privacy rights youth have in this evolving environment. Datatilsynet a Danish authority has released guidance that we cover below. If you have an AI application thats collecting child data and want to be compliant book a demo with our team here to use our tools to automate your compliance requirements.

Danish Data Protection Authority (Datatilsynet)

AI, Children and Privacy: Essential Guidance for Families and Educators

Artificial intelligence is increasingly embedded in the everyday digital lives of children and young people, from homework helpers and chatbots to social media feeds and online games. However, the rapid adoption of AI technologies raises important questions about how personal data is collected, used and shared, and what privacy rights youth have in this evolving environment. A new guidance initiative from the Danish Data Protection Authority (Datatilsynet) sheds light on these issues and offers practical advice for parents, youth and caregivers navigating AI in daily life.

How AI Touches Daily Life for Children and Teens

AI tools are now commonplace in the digital spaces where children and teens spend time. From personalized recommendations on social media platforms to automated game suggestions and homework assistance, artificial intelligence plays a role in shaping experiences online. Although these technologies can provide convenience and new learning opportunities, they often rely on processing personal information in ways that are not transparent to young users or their guardians.

Children and young people may not fully understand *what types of data are being collected*, how it is used, or how it can influence the information they see or the choices they make online. Datatilsynet’s guidance aims to close that knowledge gap by emphasizing privacy rights and practical awareness.

Importantly, children and adolescents have a heightened need for privacy protection under European data protection law, which recognizes that minors may be less able to make fully informed decisions about their data which was covered on a recent Podcast.

Privacy Risks and Common AI Use Cases

AI systems collect, analyze and often store personal data in order to function. This can include text entered into chatbots, viewing histories, interaction patterns, profile information and inferred personal preferences. When these systems operate within apps and social media, the data may be used to tailor recommendations, show ads, or improve automated learning models. For children and teens, this means that their digital behavior becomes part of a dataset that may persist, be shared, or influence future digital interactions.

The risks include:

  • Unintended exposure of personal information through automated data collection;
  • Data being incorporated into broader AI training sets without clear consent mechanisms;
  • Profile building and personalized content without meaningful oversight;
  • Poorly understood retention and sharing practices across platforms.

These concerns are reflected in broader European efforts to protect online minors, with regulators adopting stricter rules for age verification, algorithmic transparency and privacy defaults for children’s services.

What Youth and Parents Should Understand About Privacy Rights

The core message of the guidance is that children and young people have specific privacy entitlements and protections under data protection law. The key concepts to understand include:

1. Consent and Informed Choice

Youth using AI tools should be aware when their data is being collected and how it will be used. Platforms should seek consent that is informed and appropriate for minors, and parents or guardians should be involved where required by national law or platform policy.

2. Transparency of Data Collection

Understanding what personal data is collected—such as identifiers, usage logs or interaction metadata—is essential. Platforms must provide clear, accessible information about data practices, especially where children are concerned.

3. Data Usage and Retention

Data protection standards require organizations to justify the purpose for processing personal information and to retain data only as long as necessary. Children’s data should not be kept longer than needed and must be adequately protected against misuse.

Practical Advice for Families and Educators

To translate these principles into everyday digital habits, parents and young users can take the following actions:

  • Review and adjust privacy settings on apps, games and social platforms to minimize data collection;
  • Discuss with children how AI systems use their activity and when consent is appropriate;
  • Encourage critical thinking about what is shared online and why it matters;
  • Limit access to sensitive personal information in digital profiles;
  • Foster responsible digital habits, including understanding privacy notices and parental controls where available.

Numbered List: Steps for Responsible AI Awareness at Home

  1. Discuss with children what AI is and how it learns from data.
  2. Explain the types of personal information that digital tools may access.
  3. Review privacy settings together on frequently used apps.
  4. Establish household rules for online sharing and content interaction.
  5. Check app permissions regularly and revoke unnecessary access.

Balancing Opportunity and Protection

While AI technologies offer educational and social benefits, the privacy risks for children require careful management. By increasing awareness, validating consent, and enforcing sensible privacy boundaries, caregivers and educators can help ensure that young people engage with AI in ways that respect their rights and personal data.

Regulators across Europe are placing a stronger emphasis on child-centred privacy safeguards, recognizing that children’s evolving capacities demand robust protection standards. Staying informed about these standards helps families navigate digital risks while empowering youth to participate safely in the digital world.

AI Digital Experience Compliance For Children

AI is now a central part of many digital experiences for children and young people. Understanding how personal data is collected, used and shared through these systems is essential for protecting privacy rights. Clear communication, ongoing dialogue between caregivers and youth, and proactive privacy management can help reduce risk and foster digital literacy in an era where AI is increasingly pervasive.

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