Ethical Concerns and Data Privacy Issues of AI Usage Among University Students in Chitwan, Nepal

Abstract

The accelerated integration of artificial intelligence (AI) in higher education has opened up new possibilities for enriching the learning experiences of students, and it has raised new questions and concerns about privacy, security, and ethical use. This study aims to explore the ethical considerations and data privacy issues related to the use of AI tools by students in Universities in Chitwan, Nepal. The study was conducted using a quantitative and cross-sectional research design and data were gathered from 389 university students. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze the data. The variables of the measurement model were tested for reliability, convergent validity, discriminant validity, path coefficients, coefficient of determination (R²), effect size (f²), predictive relevance (Q²), and hypothesis testing, the results of which were analyzed. The results were analyzed for the variables of the measurement model through the reliability test, convergent validity test, discriminant validity test, path coefficients, coefficient of determination (R²), effect size (f²), predictive relevance (Q²) and the hypothesis test, and for the variables of the structural model. The results showed that perceived usefulness, ease of use and previous privacy breach have significant impacts on student’s privacy concerns, while peer use has no significant impact. Students’ intention to use AI is very positively associated with privacy concern. In addition, the mediating effects of ease of use and peer use are not statistically significant, and privacy concern has significant mediation effects for perceived usefulness-intention to use and prior privacy breach-intention to use relationships. The results underscore the significance of improving higher education’s institutional governance of AI, safeguarding privacy, digital literacy, and responsible AI-use policies. The study provides empirical evidence from Nepal to the growing body of literature on the ethical and privacy concerns of university students in the field of AI adoption.