AI For Privacy in Smart Homes: Exploring How Leveraging AI-Powered Smart Devices Enhances Privacy Protection

Privacy concerns and fears of unauthorized access in smart home devices often stem from misunderstandings about how data is collected, used, and protected. This study explores how AI-powered tools can offer innovative privacy protections through clear, personalized, and contextual support to users. Through 23 in-depth interviews with users, AI developers, designers, and regulators, and using Grounded Theory analysis, we identified two key themes: Aspirations for AI-Enhanced Privacy - how users perceive AI's potential to empower them, address power imbalances, and improve ease of use- and AI Ethical, Security, and Regulatory Considerations-challenges in strengthening data security, ensuring regulatory compliance, and promoting ethical AI practices. Our findings contribute to the field by uncovering user aspirations for AI-driven privacy solutions, identifying key security and ethical challenges, and providing actionable recommendations for all stakeholders, particularly targeting smart device designers and AI developers, to guide the co-design of AI tools that enhance privacy protection in smart home devices. By bridging the gap between user expectations, AI capabilities, and regulatory frameworks, this work offers practical insights for shaping the future of privacy-conscious AI integration in smart homes.