The Future of Your Personal Data - Privacy vs Monetization | Stuart Lacey | TEDxBermuda

I'd like to go in an exploration with you today on three questions three questions which will undoubtedly change you the moment you leave this auditorium three questions which will nurture an idea possibly so large it would disrupt industries that we currently hold is unassailable three questions are you being robbed are you missing out he is are you being paid so I saw this photo and I thought about you know how we all transit through our lives we seem to go in all these different directions leaving behind these vapour trails as we go through our lives and you know we do it's quite identifiable where we're going and to give you a little bit of context I have a look at Google any of you have a Google account or an Android phone or even those either the Apple or an Apple account you can find this information so let's look at Google just type in location tracking or timeline and you can actually see all the places you've been so here's me but more importantly let's go pick a date here's September 12th of this year I was in New York I left the hotel at the New York Palace went over to the Eugene O'Neill theater or date and time-stamped I came back to the palace I went to j.crew bought some socks very important went back to the palace hung out there for an hour check emails went over to Rockefeller Center you can probably guess what I saw at the Rockefeller Center those are my photos by the way Google Curtis Lee upended them to the timeline for me every single step of mine tracked and every one of you that have any device either Apple or Android have exactly that amount of tracking in your lives if you choose to look at it and so I want to think as we look at this for yourselves that you're like this automobile driving around the streets and behind you you're leaving exhaust behind you that exhaust is your person data exhaust and if you look really closely at that exhaust it's not carbon monoxide and particulates it's actually ones and zeros and in fact hidden in those ones and years of dollar signs because that is worth a tremendous amount of money and so here's a Facebook our friend location history obviously conveniently turned on automatically for you bottom-left tracking of everywhere someone's been and I'm going to tell you a story about a friend of mine in Palo Alto in California who went shopping while shopping is actually a bit of an extension went with his wife browsing home is just privately having a look took some photos and posted them on Instagram and now you can guess why Facebook bought Instagram four billion dollars post him on Instagram and what happened the very next day this cross-referenced again Zillow which is a real estate homes compendium that actually matched the photographs and his location against the houses he and she were looking at and gave them not only a realtor named Kathy Thea Cole with thirty three stars by the way she's really good and pricing but actually cross-referenced credit history income statements and location to give him offers on that house all without his consent or knowledge there's a lot of money in that data Fitbit many of you might have one or know what there are health trackers they're now being used in a courtroom let me tell you another story this gentleman unfortunately traveled a lot and he believed unfortunately that his wife was being unfaithful to him so when he came back off to a trip he actually accessed their joint cell phone records which he is legal right to and found out that indeed she had been going to the wrong side of the tracks at 2:00 a.m. in the morning on times he was overseas but not just that he could access her Fitbit record which was actually attached to her application on her cell phone to find out that her heart rate had been spiking to 157 beats per second for 27 minutes at the same time now half of you are in all going wow that's really creepy and Hoffer you're going Wow 27 minutes so calm yourselves call me hurry now for the big reveal this is important your personal data is an asset like a bond like a stock like your home it's an asset and it belongs to you you have rights title and interest in your data it is yours and the world seems to forgotten this so part of it hasn't Google market value per user they've quantified you not as a person but as a unit metric of how much you're worth $200 at Google 116 of Facebook the price of free PCWorld Apple Facebook Microsoft they're selling you to advertisers so the old saying if you're not paying for it you're not a customer you are what the product in this fact actually I don't think you're the product but your personal data is actually that product and at the bottom we're living in an era where big companies only not only exploit what we've given them for free but it could be used for good or to create entire business empires so there's a tremendous amount of value in that data and it's being used without your consent often without your knowledge and someone else is making money over your stuff and if you have any other just reference points to want proof to yourself have a look at any website you go to where there's an ad not ad is often generated after it's been tracking your history what you've been doing what you've been going what you've been consuming or looking at to consume and then people are paying in this case Ford Nikon Hilton to offer you ads for something they think you might want there's a huge amount of bit of lucrative business in that personal data so are you being robbed I would certainly contend for many of us yes we are so I found this picture and I just loved it it's a classic standoff you've got these three people all with their guns loaded pointing at each other no one knowing what the next step is and I like this guy I thought he was software it's got a big soft coat on it's kind of a software looking guy and he or is actually suffering big data and what they're doing is trying to get as much of your data as quickly as they can to do stuff with it and they've had all kinds of issues uber had god mode really Facebook privacy tweaks Facebook has been a constant unfortunate abuser of privacy and they've run experiments on people and Spotify at the bottom a huge privacy backlash what is actually your data worth so then you've got this guy he's kind of hardware oriented hardware Internet of Things so we're talking those fitbit's those nest thermostats self-drive cars we're talking devices and everything and to just give you two examples here's William Meredith who pulled out a shotgun and shut down a drone over his backyard it certainly wasn't his and his daughter was outside Sun Tanning and then Samsung TV any of you who have one just check when you get home please many of them were shipped with their webcams enabled and the microphones enabled and soaked actually monitor your room which might be your bedroom if you have a TV in there and it actually anyone could hack into it effectively and turn on the camera and the microphone without your notice and actually record you while you're in your room now Samsung's idea was it would sit there waiting for you to go TV on so think about that and think about how they then had to ship firmware to it like update those TVs and so then you've got the regulator that goes whoa we need to somehow stop these two parties we're in a standoff what are we going to do and the regulator's enact a whole bunch of laws consumer Bill of Rights in the US Canada's opt-in legislation have to choose now if you want to opt in lots of stuff in Europe the European general data protection regulation covering all personal data even here locally the new people law on privacy so lots of regulatory action and software and big data go okay you got me now I'm going to do this and what do they do iTunes Agreement great example now many of you probably have an iTunes account and might use an iTunes Agreement but if you actually dig into a little bit further have all of you realized it's twenty thousand seven hundred and forty five words over 36 pages so honestly Rick's your hand in the audience if any of you can actually say you've read that before you can sent it to it in fact seven attorneys spend seven days as published in a Forbes article those seven attorneys still could not understand what privacy rights were given up and so that is responded to by that industry by giving you all kinds of settings on your devices iPhones here but your iPhone has a microphone a camera and accelerometer it has all these different applications and you are given opportunities to try and customize them but many of us just want to play Angry Birds so we just download them and so if you run an Al and analysis on your device you can very quickly find out and this is actually online 50 applications accessing my contacts 57 accessing my information 24/7 whether or not the app was actually being actively used and 61 accessing my median files and you ask me why uber needs a copy of a photo I took of my children on the beach they don't so we give this stuff away and so I think about it and I actually think where none of those three we're actually the camera person we're taking that photograph we are watching it's happened to us and then when I think about is watching this I actually think about this and this is just heartbreaking as a father of two young boys six and ten one of whom is in the audience I think about the amount of time we're spending with our youth in front of devices and you know good parenting and other decisions are part of that but a very big part of it is the fact that they are actually building their own digital legacies their own vapor trails exhausts as they're going through life at a very young age and in fact if you aren't sure about that you should know what Facebook's shadow profiles are about every single person in this room has a facebook profile whether you use the application or not some of you and a friend I know here actually stopped using Facebook but he still has a profile and I saw a lady walking around earlier that was very pregnant and I can tell you when she took the ultrasound probably and shared that on a social media site that baby unborn yet has a profile so that is the world we're living in and we need to take a take ownership of our role in that we can't just watch it and so when I asked are we missing out I absolutely believe yes indeed we are so the good news is there's a solution so every good story has to have some kind of villain and some kind of win at the end so let's look about the win here the solution involves the reality that there are companies like uber and let me tell you why that's important and I'll give you a couple examples it's something called disintermediation it's a big word so let's make it easy it's get rid of the middleman or disintermediation does is brings people have something immediately next to people who want it and take out all the people who would have otherwise been in the middle it's the beginning of the sharing economy that we are so enthralled with uber owns no vehicles that the largest transport company in the world almost and they connect people with vehicles to people who want vehicles Airbnb owns no real estate not one collectively booking more Hotel nights than the top ten hotel years in the world combined and connecting people play with the place directly to people who want to place Facebook creates no content connecting people with content directly to people who want content and Alibaba the Chinese Internet giant connects people with goods and services directly to people who want them while carrying no inventory it's pretty compelling story so let's see how it might work with us but it's about this thing called PII what's that what's interesting is your personal data in and of itself is actually not that valuable unless they can connect it to you so all these companies are trying to personalize your experience offer you more relevant goods and services and they collect all this data but unless they can attach it to you it's of no value and so PII is personally identifiable information I'd like you to try and remember that because it's a very big current thread and what it is is all those traits and characteristics that might link your personal data to you name social security number actual history location biometrics any of that voiceprint so it's actually all about the PII and I want to share with you how turning being done and then what the new world looks like how it's currently been done is you've got yourself with your digital device and your data capture and you want to obviously access a some goods and services but the world is actually going that route right now and if you ask why let me tell you what's happening is you start to see working with you collecting a lot of data through your devices and through the internet of things and smartphones and then those devices because they're running on software by other large companies or applications run by them they obviously collect all that data but they know they legally cannot use it because it's got personal attributes attached so what do they do they anonymize it they strip all the personal identification off once they've anonymized it now they can buy and sell it now you can see the virtuous chain of all the revenue creation that buying and selling goes to people who then are using it with analytics sometimes running AI and other algorithmic measures to try and figure out stuff about you to actually recompile it to ultimately figure out you are who they think you are so they can then sell it to someone who's going to advertise to try and sell your product they think you want that is 358 degrees around a circle and it takes an immense amount of time and cost and if you have a question about that how much values in there just ask Google who 90 percent of their revenues come from advertisement so why don't you just go the other way why don't we disintermediate the whole thing why don't we get rid of the middlemen just go straight that is the bridge that we're going to cross soon and that is what we call two degrees one degree there and one degree back so that's a bit subjective maybe so let's use a concrete example the great thing is with my data it's my data I own it I've got choice so I can accuse to engage in a fair value exchange and imagine in that 2° place that I choose to share my PII my personal data to someone who's got goods and services that I might want in return for the immediate real-time attribution of those characteristics that they desperately need in order to offer you relevant personalized immediate goods and services they now save a tremendous amount of money in time by not having to advertise and they can now discount the product and immediately give it to you by discounting it what are you doing you're actually reducing the cost to yourself and so we talked earlier about j.crew I bought my Sox a real life example imagine if j.crew knew all my stuff but I'm walking actually in the street and I can share on demand my size style preference loyalty awards location how much my average spend is and if I choose to do that J cooking so we have your size those styles that you like in the colors you want for the average spend that usually do and walk in the door now across the street in 20% off or imagine if Fitbit in your healthy and virtuous lifestyle and a good example of Fitbit and you have an amazing regimen of exercise which shows your discipline shows your heart rate shows a lot of really good valuable information in your playful life insurance in real time all that underwriting cost can be removed and you can get a discounted policy imagine a hotel you like Hilton where they might want to know where you travel what kind of rooms you like what kind of spend you do on in in-room services your your kind of loyalty attributions and what imagine if you could do that the first time you shop and Hilton could offer you discounting immediately rather than having to buy ads and your social media feeds and websites ongoing lots and lots and lots of examples how your data will actually change the future and what it's all about is actually you monetizing your own data not someone else you so if I wrap up for a moment let's just think about this you go through life and you leave a personal data exhaust behind you and the big reveal is it's actually your data and it's an asset class and right now it feels like we're being robbed but it's a standoff and within that standoff a virtuous cycle if you know about standoffs one way to break them is to actually introduce a fourth event or something else that's going to change the dynamic so instead of just watching and just missing out maybe we act and maybe we take control maybe we get involved and so the good news is there is a solution it's that where disintermediation is the sharing economy it's the uber and airbnb ease of the world and that kind of solution is coming right now to your personal data world and it's all about the PII and if you do it right and if you have choice which means you can choose when you act and when you don't which is extremely powerful because you can opt out anytime you want when you do choose you can monetize your own PII and so about 20 minutes ago there was a challenge in the video that you have to be able to sum up your entire TED talk in six words and not being one to shirk on a challenge here we go so we asked a question are you being paid you will thank you very much

Channel: TEDx Talks

Views: 192,599

Keywords: TEDxTalks, English, Bermuda, Technology, Identity, Privacy

Id: JIo-V0beaBw

Length: 17min 51sec (1071 seconds)

Published: Sun Dec 20 2015