With data-driven decision-making processes and digital connections expanding rapidly, protecting personal information is more critical than ever. But at the same time, our growing reliance on online services and connected devices is leading to more frequent conflicts between emerging technologies and privacy laws.
Here’s how advancing technologies impact privacy laws and how regulations are shifting to safeguard data in an ever-advancing world.
Exploring Emerging Technologies
Emerging technologies are new, innovative, and advanced technologies that are currently being developed and refined. The term also refers to those that have recently become available for public use, of which artificial intelligence (AI) is one of the most prevalent.
Tools based on AI, the Internet of Things (IoT), blockchain, and virtual or augmented reality have the potential to alter the way societies, economies, and industrial processes function.
As these technologies continue to become increasingly advanced, they’re set to bring about a range of challenges and opportunities. One major challenge is how the data they rely on is collected and stored. Another is how organisations use and share personal information.
The Role of Data Privacy Regulations
Data privacy has become a growing topic of interest over the past few years. This is, in part, due to concerns about data misuse and the increase in large-scale data breaches and their associated costs. According to IBM, the average cost of data breaches increased 10% between 2023, reaching a whopping $4.88 million.
To mitigate data misuse and control how personal data is collected and processed, countries worldwide have implemented data privacy laws like the European Union’s General Data Protection Regulation (GDPR), and many others are in the process of implementing them, too.
These data privacy laws regulate how technology providers and other organisations can gather, use, store, and share data. They are designed to protect users’ privacy rights and ensure their personal information is handled and used responsibly.
Understanding the Collision Between Technology and Privacy
As technological developments grow, so do the volumes of personal data collected and stored. This, in turn, raises concerns about data privacy, data security, and the ethics of collecting and utilising personal information.
While organisations can greatly benefit from using technology to enhance innovation and efficiency, they’re also responsible for ensuring that the privacy rights of their users and customers are respected. This is where the two collide.
The collision between emerging tech and privacy has also highlighted a growing need for policymakers, industry stakeholders, and members of the public to work together to address key challenges. This collaboration can produce privacy solutions that meet individuals’ needs and enable technology to advance and scale simultaneously.
The Impacts of AI and the Internet of Things
Technologies like AI and the IoT have had critical impacts on data collection, storage, and analysis.
Because it’s so valuable, data has been referred to as the “new oil”, and AI can be seen as the “mine”. AI platforms can collect and process vast volumes of data rapidly and without error. As they do, they reveal immediate insights and trends into customer behaviour across industries like healthcare, marketing, and finance. IoT networks and devices can also gather personal location and preference data for uses like service personalisation, which can increase conversions.
While these systems have led to operational efficiencies at scale, there are challenges involved in ensuring ongoing data privacy. AI and the IoT rely on large datasets to function optimally. This creates the risk of personal information being misused or otherwise compromised.
To safeguard the privacy rights of individuals and strictly control how their data is accessed, policymakers and organisations need to implement comprehensive data protection regulations and systems.
Regulatory frameworks such as the GDPR in Europe and the California Consumer Privacy Act (CCPA) in the United States create a system of accountability. They govern how organisations and their technologies collect and use personal information. These laws promote transparency around data practices and require robust security measures to protect personal data. They also require organisations to obtain individual consent before processing their data.
Blockchain’s Role in Enforcing Privacy Laws
Blockchain technology has an essential role to play in the enforcement of privacy and data security regulations. It uses decentralised data networks and cryptography to ensure all data stored on the blockchain is fully secure and safeguarded against unauthorised access.
Each ‘block’ in the blockchain has a unique hash that is connected to the block before it. This creates a data ledger that is both transparent and impossible to alter. This system offers exceptional security for its users and ensures that only they can access their own sensitive information.
Features like consensus modules and smart contracts also enable blockchain to verify the authenticity of data. These functions have especially important data integrity management applications in industries like finance and healthcare.
Privacy in Big Data Analytics
More industries and organisations than ever are turning to Big Data analytics to address target audiences across various sectors.
Big Data is primarily used to personalise services and communications, and organisations that use it can gain invaluable insights into their audience’s behaviours and preferences. These insights enable them to tailor their offerings and marketing to maximise conversion rates.
Personalisation is also becoming a core feature in business and marketing. However, the use of big data analytics in this regard has created risks around data breaches and surveillance.
With so much data being gathered and analysed, there are widespread risks of data leaks and privacy violations. This means organisations must implement airtight data protection measures for everything from website hosting and backups to user access controls. In doing so, this also will ensure ongoing compliance with privacy laws.
In Summary
The rapid emergence and advancement of technologies have driven and shaped the evolution of data privacy laws. But as we become even more reliant on digital tools and platforms, there’s a greater need than ever to regulate the data economy and protect personal information proactively.
What’s needed now is to create a balance between innovation and security to safeguard individual rights and promote responsible data use for the benefit of all.
