Sansad TV: What is Data & Why is the World worried about Data Colonisation? | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

Data refers to plain facts or information that is collected and stored for future reference. It is only when data is processed and organized in context that it becomes valuable information, which can be used for decision-making and other purposes.

Importance of Data:

• In today's world, data is considered the most valuable resource, surpassing even oil. India has recognized the importance of data and digital technology and aims to leverage it to drive growth, industrial revolution 4.0, and bring governance closer to its citizens.

Uses of Processed Data:

• Processed data can be used for a variety of purposes, such as helping organizations decide objectives, designing tasks, recruiting talent, and completing tasks efficiently.

Data- Oil of the 21st century

The Role of Data and Artificial Intelligence

• In the last five years, the utilization of data in Artificial Intelligence (AI) has become increasingly popular. Despite AI being an idea that has existed for 40 years, the availability of data has transformed its potential. The development of deep learning, which uses layers of neural networks to automate problem-solving, has allowed software and machines to become more intelligent. By combining data with AI, the scale and speed of data processing can be increased dramatically.
• For instance, Netflix began as a distribution company, but in 2013, it started producing its own content. By analyzing the data of who is watching what, when, how, and what they prefer, Netflix has amassed over 100 million customers worldwide.

Importance of Data for Business

• Companies like Apple and Facebook have leveraged data for commerce, utilizing it to understand customer preferences and sell them the products they want. While between 2000 and 2010, data was primarily used for monetization purposes, businesses now recognize its value beyond that.
• In the US, Google and Facebook hold a 71% share of total digital advertising spending, and in 2015-16, they captured 89% of all incremental digital advertising.

Potential for the Future

• Out of the 5.5 billion individuals in the world above the age of 14, 2.5 billion own a smartphone, and by 2020, each person will have an average of four digital devices. With the Internet of Things on the horizon, 50 billion devices will soon be connected online.
• Leading companies such as Apple, Google, GE, Siemens, Amazon, Tencent, and Baidu are shifting from selling products and services to creating platforms. These platforms not only provide solutions for problems but also capture and own the data generated during interactions, which can be used to enhance their services. In turn, this attracts more customers, generating more data.

Drawbacks of Monopolizing Data

• Data as a resource is limitless and non-rivalrous, yet it is not shared freely. Platforms that accumulate user data can disrupt entire industries, wield excessive influence, and create silos. 
• This can result in data domination, leading to privacy violations, data colonization, and a winner-takes-all scenario that stifles competition and innovation. Therefore, there is a need to compare Data with oil and consider the risks it poses to people's daily lives and their rights.

Way Forward

• To ensure the ethical use of data, users must own and control their own data and consent to its use. A robust data protection law and an efficient consent process are necessary to achieve this. One possible approach is to implement data consent APIs that allow for the collection, storage, and audits of consent.
• Users should have the right to withdraw their data at any time and choose what they want to participate in. This approach prevents data colonization while enabling and empowering AI. It shifts the privacy debate in favor of users and creates real user choice at every level. By empowering people with data, it promotes freedom and choice, leading to data democracy.