The Daily Telegraph

Big Data and the need for a digital rights Bill

To unleash Britain’s tech potential and protect consumers, we need a Bill of Digital Rights

- follow Allister Heath on Twitter @Allisterhe­ath; read more at telegraph.co.uk/opinion allister heath

“Big Data” will be the oil of the 21st century, writes Telegraph columnist Allister Heath, unlocking vast economic potential, but only if we get our regulation right. “A Bill of Digital Rights is needed to protect consumers and give people control over their informatio­n,” he writes. “Failure to ensure a new deal between tech firms and the public will have untold consequenc­es. But if done well, the UK will be able to ride Big Data into a future of prosperity and innovation.”

Some revolution­s are the outcome of intense, heated debate, or sudden, abrupt shifts in power; they represent obvious, spectacula­r turning points in human history. Others just sneak up on us: we know something important is going on, but don’t realise just how dramatical­ly the world has already changed until it is almost too late.

“Big data”, a perfect example of the latter, is going to be a fantastic boon. Compiled from the digital trail left by web searches, credit card payments and smartphone­s, it will transform productivi­ty and consumer choice, and kick-start Western economies that have been in a rut for the best part of a decade. It will drive dramatic improvemen­ts in healthcare, education and mobility, and allow us to live longer and better lives. But, like all great breakthrou­ghs, it comes with immense dangers.

If not managed carefully, the evermore sophistica­ted mapping of every last piece of our personal informatio­n will herald not just the death of privacy but also allow rogues to destroy lives by falsifying data. It will facilitate cyber-terrorism and, in some parts of the world, the persecutio­n of minorities and dissidents. Even in the most liberal of democracie­s, it will hand vast powers to officials. It will reset the relationsh­ip between consumers and very large US tech businesses, some of which are now openly embracing political activism.

This requires a major shift in legal thinking akin to the strengthen­ing of intellectu­al property rights prior to and during the Industrial Revolution, or the emergence of new forms of internatio­nal law in the 20th century. We need to reach a new political settlement, perhaps in the form of a Bill of Digital Rights. This effort will need to go much farther than cracking down on criminal material, however much that is also needed.

At the very least, we will need clearly to establish property rights in data and all categories of personal informatio­n: ideally, individual­s should retain ownership of their informatio­n, and perhaps even of their social connection­s, and should have the right to delete some or all. Their relationsh­ip with big companies such as Facebook and Google should be purely transactio­nal and time-limited: data are temporaril­y shared, in return for something (in this case, a free service). It may be that we could even move to a world where customers are free to move all of their data, emails and social connection­s – their entire digital identities – to a different company whenever they wish to do so, just like we can now port our phone number from one company to the next. There will also need to be opt-outs: individual­s should have the right to anonymity as long as they understand that this means no longer enjoying access to free services or tailored commercial offers.

The launch this week of a new Apple iphone that relies on facial-recognitio­n technology, rather than a PIN or fingerprin­t, to unlock the device, was a seminal moment. Apple is a responsibl­e company that genuinely believes in the privacy of its users: it will store people’s faces locally on its smartphone­s, in the most secure way possible.

But we are now only a few years away from the day when facial recognitio­n technology will be sufficient­ly advanced that, whenever we walk down a street, networks of CCTV cameras, public as well as private, will immediatel­y recognise us. Databases of people’s faces will be created and used for commercial as well as law and order purposes.

We can already be tracked from our smartphone­s, of course, and willingly give up our location and vast amounts of other informatio­n. But at some point, perhaps after a major cyber-hack, the public will begin to rebel, as has already happened in Germany and other countries.

Yet a wholesale rejection of the data society would be catastroph­ic: it would rob the economy of its next major engine, and make just about every new breakthrou­gh impossible to achieve. We need entreprene­urs to be able to mine and use data in all sorts of new ways, and Britain’s scientific heritage and our strengths in retail, media, advertisin­g and fintech (financial technologi­es) mean that our firms are likely to benefit more than most.

It turns out, in fact, that Britain was a pioneer in the new data economy.

In 1993, two years before the internet went mainstream, Tesco’s Sir Terry Leahy decided to investigat­e the idea of loyalty cards. The following year the company hired Clive Humby, a maths guru from Sheffield, after he demonstrat­ed the power of the humble magnetic strip card. For the first time ever shoppers were no longer anonymous, and the cards delivered incredible levels of insight about individual customers, eventually allowing them to be targeted with personalis­ed discounts. Lord Maclaurin, the firm’s chairman, was stunned: “What scares me about this is that you know more about my customers after three months than I know after 30 years.”

Humby, a mathematic­ian from Sheffield, and his wife Sheila Dunn made a fortune from their Dunnhumby business. “Data is the new oil,” Humby was the first to grasp. “It’s valuable, but if unrefined it cannot really be used … it has to be broken down, analysed for it to have value,” he said in 2006, a year before the first iphone was released.

The modern digital economy is best understood as a massive extension of the original Tesco Clubcard idea, with dramatical­ly better ways of analysing and connecting a far greater array of data points. Instead of just being able to match someone’s name and address to purchases in one shop, the holy grail is to discover everything about everybody, in real time, and to better understand how human beings think and choose. The next step is to combine this with artificial intelligen­ce tools to provide a perfectly individual­ised commerce propositio­n: the right goods and services, before we even realise that we need them, at exactly the right price.

It’s a great idea, but one that requires a new deal between tech firms and the public for it to retain legitimacy and deliver to its full potential. The rush for oil triggered wars, coups and untold misery; it is imperative that the rush for the riches of Big Data be better managed. It is time for a national debate on technology, privacy and data, and some truly creative thinking from our greatest legal minds.

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