Artificial intelligence is quickly becoming part of everyday life. It writes emails, recommends what we watch, helps with work, and even supports decisions in healthcare and finance.
But while AI promises convenience and innovation, there’s a growing reality people are starting to confront: when AI goes wrong, the impact can be serious.
From data misuse to deepfakes and automated decision-making, the risks are no longer theoretical. They’re already happening.
The hidden cost of convenience
Most AI tools rely on data — and lots of it.
That data can include everything from browsing habits to personal messages, images and location information. In some cases, it may even include content you never expected to be reused. Under UK law, organisations must have a lawful basis for using personal data and be transparent about how it’s used.
But with AI systems, that line isn’t always clear.
For consumers, the risk is simple: you may not fully understand how your data is being collected, shared or reused — until something goes wrong.
When AI makes decisions about you
AI isn’t just powering apps. It’s increasingly being used to make decisions that affect people’s lives.
That could include:
- Screening job applications
- Assessing creditworthiness
- Influencing insurance pricing.
The problem is that these systems can inherit bias from the data they are trained on.
If that data reflects past inequalities, the AI can reinforce them.
In some cases, people may not even realise a decision has been made by an algorithm — or how to challenge it.
Deepfakes, scams and manipulation
AI-generated content is becoming harder to spot.
Deepfake videos, cloned voices and realistic fake images are already being used in scams, harassment and misinformation campaigns.
One high-profile example involved a deepfake of Martin Lewis being used to promote a fake investment scheme. The video looked convincing — and for many people, that’s the problem.
As the technology improves, the gap between real and fake continues to shrink.
When AI is used for harm
Some of the most serious concerns relate to how AI tools can be misused to create harmful or abusive content.
In early 2026, Grok — an AI tool linked to X (formerly Twitter) — came under scrutiny after researchers estimated that it had generated large volumes of sexualised images in a short period, including some that appeared to depict children.
More broadly, the Internet Watch Foundation has reported a rise in AI-generated child sexual abuse material, highlighting how quickly these tools can be misused when safeguards are weak.
There are also growing reports of AI being used to create fake, sexualised images of ordinary people — including in schools and workplaces.
The law is still catching up
Because AI systems can be complex and opaque, it can be difficult to understand how decisions are made, or to challenge them effectively. For consumers, that can mean being left without clear answers or straightforward ways to put things right.
In the UK, existing laws — including data protection, consumer protection and equality law — already apply to AI. But they weren’t designed with modern AI systems in mind. That creates grey areas.
The policy direction is still evolving, but for now, the framework remains fragmented and unclear.
Want to understand the risks in more detail?
AI isn’t going away. If anything, it’s becoming more embedded in everyday life. That means the risks outlined above are just a snapshot of a much bigger picture.
Our full guide breaks down:
- How AI uses your data
- Where legal protections apply (and where they don’t)
- Real-world examples of harm
- What needs to change to protect consumers.
