The integration of artificial intelligence (AI) into law enforcement, particularly through predictive policing and mass surveillance systems, represents a paradigm shift in crime prevention and public security in India. While promising efficiency, these technologies pose a profound threat to the fundamental right to privacy, enabled by the vast datafication of the Indian populace through projects like Crime and Criminal Tracking Network & Systems (CCTNS) and facial recognition networks. This paper provides a critical legal analysis of this emerging landscape in the context of India's newly enacted Digital Personal Data Protection Act, 2023 (DPDP Act). It argues that while the DPDP Act establishes a foundational framework for data protection, its provisions are critically ill-suited to regulate state-driven surveillance and predictive analytics. The analysis identifies key deficiencies, including: (1) the extensive exemptions granted to the State for "public interest" and "security" purposes, which create a significant carve-out for law enforcement activities; (2) the lack of robust safeguards against automated decision-making and profiling; and (3) the absence of independent, pre-emptive oversight mechanisms. The paper concludes that without significant legislative amendments and judicial interpretation that prioritizes a proportionality-based assessment, the DPDP Act risks becoming a legitimizing facade for a panopticon state, failing to adequately protect citizens from the privacy-invasive potential of AI-driven policing.