The current study aimed to investigate the impact of using artificial intelligence applications on the digital privacy of individuals and institutions in Oman. It examined their use in social networks and open-source software and identified the challenges arising from their use. The study adopted a qualitative approach, using three focus groups and eight semi-structured interviews as data collection tools. The study population included institutions that actively use artificial intelligence applications as well as those dealing with relevant technical and legislative systems. The sample was purposefully selected, consisting of six institutions: four government agencies and two private institutions. The study revealed that some major companies use artificial intelligence applications on social media platforms and open-source software to infringe upon privacy and violate user data by analyzing and selling it to other institutions for political or financial gains. The results also indicated that artificial intelligence applications could be used to commit information crimes such as electronic blackmail, theft of government data, and system disruptions. Additionally, they could be exploited by social engineers to perpetrate more advanced forms of cybercrime. The study concluded with several recommendations, including the need to design a program for employees in institutions to enhance and raise their technical, legislative, and regulatory awareness in dealing with modern and advanced technologies.