This study explores how privacy dynamics have changed, particularly for young digital citizens navigating data-centric environments, as artificial intelligence (AI) has become integrated into digital ecosystems. We examine the evolving privacy concerns of three key stakeholder groups—digital citizens aged 16 to 19, parents/educators, and AI experts—and assess differences in data ownership, trust, transparency, parental mediation, education, and risk-benefit perceptions. Using grounded theory methodology, we synthesize insights from 482 participants through structured surveys, qualitative interviews, and focus groups. Our findings reveal that young users emphasize autonomy and digital freedom, while parents and educators advocate for regulatory oversight and AI literacy programs. AI experts prioritize a balance between ethical system design and technical efficiency. We also highlight gaps in AI literacy and transparency, and emphasize the need for a comprehensive stakeholder-centered privacy framework that accommodates the needs of diverse users. We use comparative thematic analysis to identify key tensions in privacy governance and develop a novel AI Privacy-Ethics Alignment (PEA-AI) model that structures privacy decision-making as a dynamic negotiation among stakeholders. By systematically analyzing topics such as transparency, user control, risk awareness, and parental moderation, we provide a scalable and adaptive foundation for AI governance, ensuring that privacy protections evolve alongside new AI technologies and youth-centered digital interactions.
