Inside the Algorithm: Understanding Risks of AI Processing of Student Data

Inside the Algorithm: Understanding Risks of AI Processing of Student Data

Series (Part 2 of 4) Guardians of Student Data: Rethinking Privacy in the Age of AI

AI is no longer just a buzzword in EdTech; it’s actively shaping how students learn. Intelligent tutoring systems, predictive learning analytics, and adaptive lesson plans can help teachers identify learning gaps, recommend exercises, and tailor lessons to individual needs.

But all of this personalization relies on data. Every click, answer, and interaction with a digital tool may be collected, processed, and analyzed.

What Data AI Uses:

AI systems in education typically draw on:

  • Student performance data: scores, assignments, and assessments
  • Engagement metrics: time spent on activities, clicks, participation patterns
  • Demographic or enrollment data: grade level, age, sometimes school location

This data helps AI make instructional decisions, but it also raises new privacy concerns. For instance:

  • Are parents and teachers fully aware of what data is collected and why?
  • Are the algorithms fair, unbiased, and free from hidden assumptions?
  • Could sensitive student information be inadvertently exposed?
Practical Approaches to AI Privacy:

Even though AI may feel technical, the privacy issues often come down to strategy and policies. Practical considerations for EdTech teams should include:

  • Minimizing data collection to only what is essential for AI functionality.
  • Documenting data use clearly and sharing in a transparent manner, so students, families and teachers understand what’s happening.
  • Reviewing third-party AI tools for compliance with laws like FERPA, COPPA, and state-specific rules.
  • Conducting regular assessments and continuous monitoring to validate that AI models behave as expected and do not result in unintended risks.

When these steps are embedded in development and operations, AI can be both innovative and responsible.

Why This Matters:

AI may promise efficiency and personalization, but parents and schools are increasingly aware of data and privacy risks. Appropriate controls, including transparency, data minimization, and ongoing monitoring of data collection and AI behavior builds trust, which is essential for adoption and long-term success.

Looking Ahead:

Next, we’ll explore the complex landscape of state-specific privacy laws, showing why EdTech companies must navigate dozens of rules beyond federal requirements, and how careful planning can prevent legal and reputational risks

If you’d like to discuss children’s privacy or student data protection in EdTech — or have questions about this post or your organization’s privacy practices — contact tiffany.soomdat@tueoris.com

— Tiffany A. Soomdat, MSL, CIPP/USSenior Consultant @ Tueoris LLC

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Tiffany Soomdat

Posted on

November 06, 2025
Senior Consultant @ Tueoris