In an era where data breaches cost companies millions in fines along with their reputation, Indian businesses are discovering that customer trust, built through robust data protection, is becoming their most valuable asset. 

The emergence of AI has significantly increased the complexity of data protection and consumer privacy. However, with stringent regulations such as GDPR and India's Digital Personal Data Protection Act (DPDPA), data protection has moved from being a mere compliance checkbox to a business imperative.

In a panel discussion titled 'Navigating Data Privacy and Security in the AI-Driven Era' at the afaqs! Customer First Summit, key industry experts discussed the intricacies of data management and security within the realm of CX.

The panellists included Monish Vohra, EVP and head of operations, SBI Card; Puneet Kolthe, head of customer service, Arata; and Sumit Biswas, head-CRM & Loyalty, Bikanervala Foods. Balaji Pandiaraj, head of customer experience and executive director, Ipsos India, moderated the session.

For SBI Card, the protection of consumer data starts right from acquiring it and acquiring only that which is necessary. The company has moved from collecting extensive customer information to a need-based approach, acknowledging that excess data becomes a liability.

Typically, brands end up getting a whole plethora of data that very often isn’t even relevant. And then you're swamped with so much data that you don't even know what to do with it.

Monish Vohra, SBI Card

With potential penalties of hundreds of crores for breaches, many brands are taking proactive steps to not compromise on their data or their reputation. At SBI Card, the brand has implemented rigorous partner assessment protocols, followed by consistent monitoring of how their data is being used. 

But how does a D2C brand, which quite regularly deals in data for contextual targeting and customer engagement, maintain privacy while acquiring customers or completing transactions?

For hair beauty brand Arata, the trick is to embed data protection within its customer journey. Puneet Kolthe, the brand’s head of customer service, said, "We divide personalisation into three stages: pre-order analysis through platforms like QuickChat, contextual recommendations during the order stage, and post-purchase value additions."

This framework demonstrates how emerging brands are weaponising privacy commitments to build customer trust—all within a secure data framework.

Now, what if you were a QSR chain spread across multiple nations with varied protocols?

Bikanervala Foods faces unique challenges managing millions of customers' data across multiple countries. "Different countries have different laws," Biswas noted, highlighting particularly stringent overseas compliance requirements.

The brand’s response includes implementing encryption and tokenisation measures and adapting to varied international regulations.

The AI complex

The integration of artificial intelligence into business operations has dramatically transformed data protection landscapes. Organisations must now navigate the dual challenges of leveraging AI capabilities whilst safeguarding unprecedented volumes of sensitive customer information.

AI systems require vast amounts of data to function effectively, yet this very requirement increases the vulnerability surface for data breaches and privacy violations.

The rise of AI-powered customer service tools, personalisation engines, and automated decision systems has introduced new complexities in data governance. Companies must balance the promise of enhanced customer experiences with the fundamental responsibility of protecting customer privacy. 

Vohra emphasised the critical nature of trust in AI implementation: "It's not a question of if; it's a question of how you actually do this. It's a challenge to build trust in the consumer, and that happens only with you actually being open and transparent with the customer." 

He cautioned against premature deployment of AI systems, sharing their experience of holding back an email bot until achieving 95% accuracy rather than settling for 70%.

When you're just in the discovery state, or in a pre-order stage, let all the collection of data be optional.

Puneet Kolthe, Arata

Puneet Kolthe advocated for a customer-centric approach to data collection: "When you're just in the discovery state, or in a pre-order stage, let all the information, and the communication, and the collection of data be optional."

He stressed the importance of secure data infrastructure: "Ensure that all that data sits behind a world CDP. They should not be easily accessible to any and everybody within the organisation."

Sumit Biswas highlighted the ubiquity of AI tools in daily life: "By the end of the day we will all get an AI tool notification on our mobile," emphasising the shared responsibility between businesses and government in protecting customer data in this AI-driven landscape.

We would like to thank our partners:

Digital Experience Partner:

Salesforce

Gen AI Partner:

Chat360

Co-Partner:

Zoho