The Future of Data: From Personalization to Aggregation

In the past three years, the volume of data worldwide has doubled, reaching an astonishing 100 trillion gigabytes. This exponential growth has led to a shift in the way companies approach data collection. Rather than focusing on highly personalized data, companies are now more interested in collecting aggregated data.

This change in strategy can be attributed to the recent clampdown on third-party cookies by tech giants like Apple and Google. As a result, online data has become depersonalized, reducing its value. The once highly sought-after personalized data is now being replaced by large volumes of aggregated data.

Why the sudden shift? The answer lies in the race to train AI models. Companies have realized that large aggregated datasets are invaluable for training these models effectively. Consequently, the data industry is entering a consolidation phase as companies seek to monetize their data assets.

However, this consolidation has raised concerns about the enclosure of data and the potential loss of a commons. While the value of individual data remains low, the value of large aggregated datasets is significant. Companies are actively seeking partnerships and deals to secure more data and gain a competitive edge.

Looking ahead, the future of data collection and use is uncertain. There is potential for both positive and negative outcomes. On one hand, the availability of large aggregated datasets can fuel advancements in AI and technology. On the other hand, the enclosure of data may limit access and hinder innovation.

Join us as we delve into the future of data and explore the implications of this shift from personalization to aggregation. Discover how companies are adapting their strategies, the challenges they face, and the potential impact on society as a whole.

The mantra from the mid-2000s that “data is the new oil” is taking on a new sheen: tapping and refining it into personalised advertisements has become harder, thanks to increasing regulation and the self-serving policies of the tech behemoths. Meanwhile artificial intelligence is a data-guzzler, eschewing the pointedly personal in favour of the revealing aggregate. Both trends raise thorny questions about ownership of the precious underlying resource.

On this week’s show, hosts Tom Lee-Devlin, Mike Bird and Alice Fulwood examine how data are gathered and traded, and Kenn Cukier, a deputy executive editor at The Economist, describe the changes in online tracking that altered those paths. Sir Martin Sorrell, chairman of S4 Capital, a digital-advertising firm, describes how his industry is shifting. And Dennis Cinelli, chief financial officer of Scale AI, a data startup, surveys the land-grab of data among artificial-intelligence firms.

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