Legal and ethical challenges in AI-powered smart homes: protecting data, cybersecurity and promoting sustainable innovation in digital economies
Nana Adjoa Adobea Asante
Afrimore Advisors PRUC
naa.asante@afrimoreadvisors.com
Afrimore Advisors PRUC,
king.george@afrimoreadvisors.com
Introduction
Artificial intelligence (AI)-powered smart homes represent a great milestone in sustainable living by leveraging technologies such as the Internet of Things (IoT) to reduce energy use, increase security and improve comfort.[1] These systems can manage resources independently, customise surroundings and forecast maintenance needs, reducing waste and expenses. Smart energy management and occupancy sensors, both in Ghana and throughout the world, help to achieve green goals that are consistent with the UN's Sustainable Development Goal (SDG) for Affordable and Clean Energy (SDG 7).
This digital revolution has transformed environmental sustainability as well as economic prosperity through housing and technological innovation.[2] Innovations in smart home technology must prioritise ethical AI, robust data privacy and cybersecurity. These systems manage sensitive personal information and as such openness, justice and accountability are important to avoid the dark side of unrestrained, yet smart, technology. Ghana's Digital Economy Policy and Strategy (2024) supports UNESCO's ethical AI standards by emphasising algorithmic openness, human supervision and inclusivity. It also authorises the Data Protection Commission and Cybersecurity Authority to defend data rights and enforce security standards, therefore restoring user trust and protecting basic rights.
Legal landscape of AI and IoT in smart homes
The legal and regulatory landscape plays an essential role in shaping the responsible adoption of AI-driven smart homes, particularly in emerging digital economies like Ghana. Ghana’s Digital Economy Policy and Strategy (2024) provides a comprehensive framework that balances innovation with the protection of individual rights, calling for agile and proportionate regulation, regulatory sandboxes and strong institutional collaboration. The policy prioritises ethical AI, data governance and cybersecurity, ensuring that smart home technologies operate within a rights-respecting and people-centered environment. By empowering regulatory bodies such as the Data Protection Commission and the Cybersecurity Authority, and by fostering public awareness and stakeholder engagement, Ghana positions itself as a leader in the responsible digital transformation of the housing sector.[3] This approach not only aligns with international best practices, but also supports inclusive growth, digital literacy and the creation of a robust, future-ready digital economy.[4]
Existing legal frameworks for AI, data protection and cybersecurity in smart homes are evolving to address the complex interplay between innovation and user rights. Ghana’s Data Protection Act 2012 empowers the Data Protection Commission to enforce privacy standards, conduct audits and raise public awareness, ensuring that personal data collected by smart home technologies is protected. Internationally, the UNESCO Recommendation on the Ethics of AI sets out principles such as transparency, fairness and accountability, which Ghana has adopted into its digital economy policy. However, there are complexities with regulating AI-driven smart homes due to the rapid dynamism of technological advancement, the need for agile regulations and the risk of stifling innovation. Ghana’s approach – combining regulatory sandboxes, risk-based oversight and stakeholder engagement – reflects best practices for fostering responsible innovation while safeguarding data protection and cybersecurity.
The ecosystem of the IoTs and smart homes
The advancement of IoT technology has greatly extended the potential of smart homes, allowing multiple products such as air conditioners, security cameras, door locks and refrigerators to be networked within an integrated ecosystem.[5] Modern smart homes rely on a centralised control systems to handle these networked gadgets. Cloud-based solutions[6] have also become indispensable, allowing for remote access, data storage and expanded capabilities such as real-time monitoring. This signifies the transition from isolated automation to an interconnected smart home experience in which gadgets collaborate to deliver enhanced comfort, security and energy efficiency.[7]
The Ghanaian connectivity gap and IOT functionality
The IoT is a key idea that enables home automation technologies. This essentially allows gadgets to acquire and exchange data from their surroundings using underlying technologies such as embedded electronics, pervasive and ubiquitous computers, communication protocols and sensor networks. A home automation system (HAS) is a system that is deployed in a domestic setting with the goal of making the space more intelligent in order to conserve energy and provide security.[8]
The increased popularity of smart home gadgets, wearable devices and linked appliances is propelling the consumer IoT market in Ghana. Consumers are rapidly turning to IoT solutions to improve convenience, security and efficiency in their everyday lives, boosting demand for connected devices and services. However, because IoT-based technologies are application and context specific, a new context-relevant strategy is required in Ghana. For example, most HAS IoT applications in Europe and America rely on Wi-Fi or cellular-based communication methods, which cannot be used in Ghana owing to low internet penetration and the relatively high cost of maintaining stable connectivity. A more appropriate solution must make use of publicly accessible and location-independent communication technologies such as LoRa, Bluetooth Low-Energy (BLE), Global System for Mobile Communications (GSM) and others.[9]
NeuraHomes tailors its smart home solutions to Ghana's infrastructure challenges by designing systems that work seamlessly with the country's existing power grid, incorporating features such as remote control and automation to help users manage energy consumption efficiently despite occasional outages. The technology also takes advantage of Ghana's expanding mobile network infrastructure, which includes 4G and emerging 5G capabilities, to provide reliable connectivity for real-time monitoring and control via mobile apps, ensuring that smart devices are accessible even in areas with variable internet quality. This strategy enables NeuraHomes to offer practical, energy-efficient and user-friendly smart house technology that is suited to the reality of Ghana's infrastructural landscape.
Africa's real estate developers are reacting to infrastructure difficulties by including flexibility and resilience into their smart solutions rather than merely importing off-the-shelf technology. They favour reliable, low-bandwidth IoT devices and modular building approaches that can run despite intermittent power supply and poor internet access. Developers are increasingly using solar energy integration, water recycling and energy-efficient building materials that are customised to local resource limits.[10] This pragmatic, context-aware technique is propelling a new generation of real estate innovation that confronts Africa's infrastructure challenges head-on.
Market challenges and government policies
The consumer IoT market in Ghana has limitations due to challenges with the telecommunications infrastructure and consumer buy-in of smart home technology. Data privacy issues and cybersecurity dangers may also have an impact on household adoption of IoT devices and services.
Consequently, there is the need for policy intervention to further improve connectivity and improve IOT consumerism. These policies might include programs to encourage research and development in IoT technology and applications, incentives for the use of smart home devices and systems, and the establishment of guidelines and laws for IoT device seamless integration, privacy and cybersecurity.[11] Furthermore, lawmakers may take steps to facilitate the development of skills and education in IoT device installation and configuration, make financing and technical assistance more accessible to IoT device manufacturers and service providers and raise public awareness about the advantages of using smart devices for home automation, conservation of energy and lifestyle improvement.
Ethical challenges in AI-driven smart homes
Smart home technologies frequently capture sensitive data, prompting questions about their use and security. Ensuring openness and giving people control over their personal information is critical to tackling these issues. Unlike generic AI systems, smart home technologies work in deeply personal environments, making their ethical implications more urgent and significant. They should empower users rather than limit their freedom,[12] which necessitates diligent oversight over how these systems are implemented and how well users are informed and able to regulate them.
Smart home technologies capture large volumes of personal data, raising serious privacy issues. These systems collect sensitive data about users' activities, health and daily routines. Although encryption and local server hosting can reduce privacy threats by separating networks from the internet, privacy breaches continue to be a major concern.[13]
The interconnectedness of smart homes raises the possibility of cyberattacks. Despite the installation of advanced security measures such as blockchain and encrypted networks, cybercrime continues to increase and attackers are always discovering new methods to exploit system flaws. As a result, cybersecurity is an ever-changing concern that needs continuous innovation to keep ahead of emerging threats.[14] The significance of strong cybersecurity measures rests in protecting personal data, preserving user confidence and averting potentially catastrophic security breaches.
Promoting sustainable innovation in digital economies
Energy efficiency and sustainability are now top considerations in the construction of smart houses. Smart energy monitoring systems, integrated renewable energy sources and energy storage technologies allow residences to optimise energy usage while reducing waste.[15] Smart thermostats, energy meters and AI-powered systems all contribute to the automation of energy management, lowering consumption during peak hours and increasing the usage of renewable energy. This emphasis on sustainability not only lowers family expenses but also adds to larger environmental conservation efforts, making smart houses a crucial component of green living.[16]
Conclusion
AI powered smart homes are the near-present and the future. Despite network infrastructure deficiencies and pessimism towards full adoption, the ergonomics and advanced dependence on technology creates the inevitable need to ensure that the necessary protection as are put in place to ensure the near absolute existence of AI technologies that are ethical, responsible and sustainable.
[1] Saaman Nadeem, Noor Ismail, Paridah Daud and Tahir Mehmood, ‘Emerging Technologies and Ethical Challenges in AI and Cybersecurity’ (2025) 15 International Journal of Academic Research in Business and Social Sciences https://doi.org/10.6007/IJARBSS/v15-i2/24636 Accessed 16 July 2025
[2] UNESCO, Recommendation on the Ethics of Artificial Intelligence (2021) https://unesdoc.unesco.org/ark:/48223/pf0000381137 Accessed 16 July 2025.
[3] Ghana Digital Economy Policy and Strategy (2024) https://moc.gov.gh/digital-economy-policy Accessed 16 July 2025
[4] Thomas W Sanchez, Marc Brenman & Xinyue Ye, ‘The Ethical Concerns of Artificial Intelligence in Urban Planning’ (2024) 91 Journal of the American Planning Association 294 https://www.tandfonline.com/doi/full/10.1080/01944363.2024.2355305 Accessed 16 July 2025
[5] W Choi, J Kim, S Lee and E Park, ‘Smart home and internet of things: A bibliometric study’ (2021) 301 Journal of Cleaner Production 126908 https://www.sciencedirect.com/science/article/abs/pii/S0959652621011276 Accessed 16 July 2025
[6] G Fylaktopoulos and G Goumas et al, ‘An overview of platforms for cloud based development’ (2016) 5 SpringerPlus 1–13 https://pubmed.ncbi.nlm.nih.gov/26835220/ Accessed 16 July 2025
[7] X Li et al, ‘Internet of things to network smart devices for ecosystem monitoring’ (2019) 64 Science Bulletin (17) 1234 https://www.sciencedirect.com/science/article/abs/pii/S2095927319304013 Accessed 16 July 2025
[8] O Thiare Effah and A Wyglinski, ‘Multi-objective optimization modeling of clustering-based agricultural internet of things’ 2020 IEEE 92nd Vehicular Technology Conference (VTC2020-Fall), 2020) 1–5 https://www.researchgate.net/publication/349389144_Multi-Objective_Optimization_Modeling_of_Clustering-Based_Agricultural_Internet_of_Things Accessed 16 July 2025
[9] M Y Umaru, E Effah, M Frederick and A Essilfie, ‘In-depth IoT-based Home Automation System for Ghana’s Context’ (2023) International Journal of Research and Scientific Innovation 521 https://doi.org/10.51244/IJRSI.2023.1011043 Accessed 16 July 2025
[10] AR Managing Editor, ‘Technological Transformation in Africa Real Estate: How AI & Blockchain Revolutionize Housing Finance, Infrastructure & Project Management in Nigeria, Egypt & South Africa’ (African Researchers, May 2025) https://www.africanresearchers.org/technological-transformation-in-african-real-estate-how-ai-blockchain-revolutionize-housing-finance-infrastructure-project-management-in-nigeria-egypt-south-africa/ Accessed 16 July 2025
[11] 6Wresearch, ‘Ghana Consumer IoT Market (2025-2031) Outlook - Trends, Value, Forecast, Share, Revenue, Companies, Analysis, Industry, Size & Growth’ (6Wresearch, 1 January 2024) https://www.6wresearch.com/industry-report/ghana-consumer-iot-market Accessed 16 July 2025
[12] M Chan, D Estève, C Escriba and E Campo, 'A review of smart homes—present state and future challenges' (2008) 91 Computer Methods and Programs in Biomedicine 55 https://pubmed.ncbi.nlm.nih.gov/18367286/ Accessed 16 July 2025
[13] Ibid.
[14] K Rajasekharaiah, CS Dule and E Sudarshan, 'Cyber security challenges and its emerging trends on latest technologies' (2020) 981 IOP Conference Series: Materials Science and Engineering 022062 (IOP Publishing) https://www.researchgate.net/publication/347373943_Cyber_Security_Challenges_and_its_Emerging_Trends_on_Latest_Technologies Accessed 16 July 2025
[15] B Zhou and W Li et al, 'Smart home energy management systems: Concept, configurations, and scheduling strategies' (2016) 61 Renewable and Sustainable Energy Reviews 30 https://ideas.repec.org/a/eee/rensus/v61y2016icp30-40.html Accessed 16 July 2025
[16] Q Sun and H Li et al, 'A comprehensive review of smart energy meters in intelligent energy networks' (2015) 3(4) IEEE Internet of Things Journal 464 https://www.researchgate.net/publication/288056962_A_Comprehensive_Review_of_Smart_Energy_Meters_in_Intelligent_Energy_Networks Accessed 16 July 2025