Synopsis: Computerised, networked systems are diverging, creating a society where humans are constantly connected to various systems, creating electronic traces of their actions throughout the day. Modern computers enable these traces to be gathered from various sources and analysed. This can create better functionality for the humans but the cost might be their privacy. This thesis will examine the ambient intelligence concept through a case study of the SensorPhone, a system designed to gather information on the users movement and encourage a healthier lifestyle. Gathering and sharing information is necessary for the system, but might simultaneously pose privacy challenges.