The Review: Artificial Intelligence Is Doomed if You Don't Control The Data

Personalization algorithms designed to know our intentions before we do form the backbone of the Internet Economy. And while these algorithmic systems may not fit all the criteria of genuine Artificial Intelligence (AI), their artifice is firmly in place in terms of their bias. Advertising-based AI frames our lives within purchase funnels, where our desires are only relevant in regards to return on investment.

The reason this Internet Economy is so broken is because we can't control or centralize our personal data.

Why ads accelerate the artificial

Arguably the most widespread application of AI comes in the form of personalized advertising, where ceding control of our personal data has also set the precedent for relinquishing rights to our digital identity. In their article, "LinkedIn Ordered to Face Customer E-mail Contacts Lawsuit", Bloomberg recently reported that the business networking company may have, "violated customers' privacy rights for marketing purposes by accessing their external e-mail accounts and downloading their contacts' addresses." The decision means LinkedIn members who filed the complaint can seek revenue LinkedIn made using their e-mail accounts.

The profits of a new paradigm

The good news – there's a burgeoning industry championing the idea of personal data being controlled by an individual. Multiple organizations around the world are recognizing the huge value created by putting a person at the center of their data. Armed with aggregated insights, these individuals and their personal data represent a market opportunity that can far surpass inefficient and erroneous machine learning algorithms.

"The debate and the questions are still around the financial valuation of data rather than the utility of data to the individual," noted Alan Mitchell, in our interview. Mitchell is strategy director of Ctrl-Shift, a market analyst and consulting business focused on opportunities for organizations stemming from the nascent personal information economy. In their recent research report, "Personal Information Management Services (PIMS) – An analysis of an emerging market", the company notes estimates for the potential market of PIMS are £16.5 billion or 1.2% of gross value added in the UK economy.

The individual versus the artificial

"Monolithic control of data is swinging towards individual control of data," noted Matt Hogan, CEO of Datacoup in our interview. The company launched in early September and provides a personal data marketplace for consumers to store and sell their data, and is also launching PD16, a video series featuring a group of thought leaders describing how personal data issues will evolve over the next two years. "Since the Snowden revelations, people realize that corporations and data brokers are accessing their data and saying, ‘you have no relationship with me – why are you mining and profiting from my data?'" While Datacoup has received a lot of press because they help people sell their data, their larger focus is on empowering people to fully understand the value and insights associated with their digital personas. "It's important for individuals to unlock the value of their data. The entire merchant side of the equation is already using it in so many ways – if it's worth so much, why are we ceding control to these entities?"