7.2: Where does all the Data go?

To understand why these companies collect so much data, we can return to machine learning and artificial intelligence. Companies gather large amounts of information for various reasons, including for less-than-wholesome purposes. AI plays a significant role in many of these processes. Here are some reasons for extensive data collection that may raise ethical concerns, along with the role of AI in each:

1. Targeted Advertising: One of the primary reasons companies collect user information is to deliver targeted ads that cater to individual interests, increasing the likelihood of engagement and conversion. AI algorithms analyse the collected data to predict the most effective ads for each user, maximising the return on investment for advertisers. However, this practice can lead to intrusive and privacy-invading ad experiences, as well as the potential for manipulation and exploitation of user data.
2. Competitive Research and Development: Data collection provides valuable insights for companies to develop new products, features, and services that cater to user needs and preferences. AI can analyse the data to identify gaps in the market or predict future trends, helping companies stay competitive and innovative. However, this practice can lead to aggressive competition, IP theft, or unethical business practices aimed at undermining competitors.
3. Surveillance and Profiling: Companies may use collected data to create detailed user profiles for various purposes, including targeted advertising, risk assessment, or even political manipulation. AI can process and analyse vast amounts of data, identifying patterns and trends that allow for the creation of comprehensive user profiles. This practice raises significant privacy concerns and can lead to discrimination, manipulation, and other unethical uses of personal information.
4. Third-Party Data Sharing: In some cases, companies may share collected user data with third parties, such as data brokers, advertisers, or other business partners, without users’ explicit consent. AI can help to identify valuable data points or user segments for monetisation, which might result in increased sharing of personal information. This practice raises concerns about data privacy and the potential misuse of personal data by third parties.
5. Unfair Competitive Advantages: Companies with access to vast amounts of user data may leverage AI to gain unfair competitive advantages, such as predicting and influencing user behaviour, dominating market segments, or exploiting network effects to create monopolies. This can stifle innovation, reduce consumer choices, and lead to market imbalances.

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