The Digital Panopticon in the Classroom: A Literature Review of Student Privacy Challenges from AI-Enabled Technologies

The rapid integration of Generative AI (GenAI) tools—such as ChatGPT, Gemini, and Copilot—into K-12 and higher education has fundamentally altered the pedagogical landscape. While these tools facilitate personalized learning and administrative efficiency, they simultaneously introduce invasive data surveillance practices conceptualized in this study as the "Digital Panopticon." This narrative literature review synthesizes scholarly research, academic texts, and reputable reports published between 2021 and 2026. The study identifies two critical themes: the normalization of surveillance through "invisible" data collection and the inadequacy of current legal frameworks (e.g., FERPA, GDPR) to address algorithmic profiling. Drawing on Foucault’s theory of the Panopticon and contemporary analyses by Twabu (2024) and Sudheer (2025), the paper argues that GenAI threatens student autonomy by creating a "chilling effect" on intellectual freedom. The review concludes by proposing "Privacy by Design" mitigation strategies and outlining specific methodologies for future research to address the long-term psychological impacts of constant digital observation.Keywords: Generative AI, Student Privacy, Digital Panopticon, Surveillance, Educational Technology, Algorithmic Bias.