Consumer behavior plays a key role in preventing misuse of data

  • 1/6/2024
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Few among us can avoid the menace of unsolicited marketing calls. Even if you outsmart those that come through a landline, thanks to careful use of caller IDs, if you answer an anonymous mobile call you might find yourself listening to someone inquiring about your level of interest in a property deal or, worse still, promoting one of the online stock-trading farces that seem to be omnipresent these days. What lies behind such ordeals are organized data leaks, in which your number is stolen, shared, sold or even traded, all for a quick buck. It is perhaps the worst manifestation of the value of data and the most obvious example of its misuse. Fortunately, use of data can also have profound and beneficial effects on our lives. For example, at the height of the COVID-19 pandemic, when uncertainty hung heavy in the air and individuals and businesses faced unprecedented challenges, a data-driven pivot helped transform the situation. Data was used to track infection rates and identify geographical hot spots, leading to more effective government guidelines and compliant consumer behavior. It serves as a reminder that data-driven decision-making can help turn the tide in the face of adversity. Somewhere between these two extremes of data use we find much of what an average data consumer or end user might experience. Corporations are pivoting their businesses around high-volume, high-velocity and high-variety information assets, appropriately labeled “big data.” A Gartner report titled “Big Data Means Big Business” sums up the transformation that has taken place in recent decades: “Thirty years ago, leading businesses were those that best took advantage of available physical assets; today’s leading businesses are those that best take advantage of available information assets.” Meanwhile, recent rapid progress in the development of artificial intelligence means businesses can sometimes face big challenges in using their own data, and that of others, to enhance their operations. Some blame this on limited tech infrastructure, including digital and data platforms that cannot meet their demands as yet. But often there are so many good and proven ways to use AI that organizations are simply swamped as they try to decide what options to focus on. They are faced with the problems of having too many choices, and a constant state of flux, as they try to formulate an adequate response. The significant role of data and its future use has been described in several ways. An IPSOS report describes data as “the currency of a technological cold war.” It said that given the recent proliferation of data-protection initiatives worldwide, there is now more transparency and choice in how consumers are tracked but the picture remains incomplete. “As we approach a cookie-less world, marketers and data companies will position and evolve their services to maintain business as usual,” it adds. In simple terms, consumer data is the digital footprint left by consumers as they navigate the online world. This means that safeguarding consumer privacy is a regulatory imperative, to protect individuals from misuse of their data and breaches of privacy. However, this does not absolve consumers of responsibility for their behavior or ethical considerations relating to their online activities. Amid rapid transformations, consumers would benefit from taking steps to avoid reducing themselves to mere data. Ehtesham Shahid The World Economic Forum’s Global Risks Report 2023 conceded that more sophisticated and extensive dataset analyses will “enable the misuse of personal information through legitimate legal mechanisms, weakening individual digital sovereignty and the right to privacy, even in well-regulated, democratic regimes.” That places numerous responsibilities on consumers themselves, beginning with awareness of the data they generate and share in the digital world. Good consumers understand that their online activities — including browsing, social media interactions, and online purchases — leave a digital trail. They should be conscious of the types of data they share, and with whom. Becoming more aware of this reality makes us more responsible consumers. This means we should take the time to review and adjust our privacy settings on online platforms and services we use. We should also try to understand how these settings affect our data exposure and take appropriate steps to protect our personal information. On one level, the issue is about informed decision-making when it comes to sharing our data. This includes, for example, reading and understanding privacy policies, terms of service, and consent agreements before agreeing to share any information. Responsible consumer practice also involves data minimization; in other words, only sharing the information that is strictly necessary for a specific transaction or service and avoiding the oversharing of personal details. To be a good consumer in this day and age requires some level of digital literacy. Consumers should be able to recognize common online scams and phishing attempts, and know how to protect themselves from them. Beyond the privacy concerns, responsible consumers might also consider the ethical aspects of their online activities, such as supporting companies and platforms that prioritize ethical data practices and sustainability. Where there is big data, can artificial intelligence be far behind? AI technology has had a significant effect on data consumption in various ways. It shapes how data is consumed, and is influenced by patterns of data consumption. AI algorithms can now analyze large amounts of data, including user behavior and preferences, to personalize content and recommendations. The technology is used in digital advertising to analyze user data and deliver targeted ads, and AI-powered tools help organizations analyze large datasets more efficiently. Moreover, AI-driven predictive models can use historical data to forecast future consumer behavior and trends. As AI continues to advance, its influence on data consumption patterns will grow, further shaping the ways in which individuals and organizations interact with, and utilize, data. Amid these rapid transformations, consumers would benefit from taking steps to avoid reducing themselves to mere data. Ehtesham Shahid is an Indian editor and researcher based in the UAE. X: @e2sham

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