Taking advantage of data, without taking advantage of people

As I take on the honor and accountability of becoming the Chair of the IAB, I’ve been reflecting on this moment in time in the marketing-media ecosystem. Data application has certainly given us insight into people’s characteristics, behaviors and actions, and it has accelerated our industry. And while it has resulted in creating more relevant experiences for consumers – we have not achieved the core objective we’ve always had – to create real, connected relationships with consumers.

In fact, as our industry has found ways to activate more and more data, we find ourselves in a position with consumers that I would describe as a crisis of trust. By being less transparent than we could have been, by not doing enough to educate consumers or to self-regulate, and by some unfortunate individual stumbles, we have acted against consumer and ultimately our own best interests. We must admit that we have a problem. With consumers, and with regulators.

The question we should ponder is, how do we find the right balance between using data and re-building trust?

It starts with each of us – everyone in our industry.

I had the pleasure of announcing that the IAB is welcoming brands into full, voting membership during the IAB’s Annual Leadership Meeting. Winning back trust will take ad tech, publishers, agencies and brand leaders all working together to create the next evolution of the marketing-media ecosystem that is needed to thrive in the 21st Century Economy.  

And consumers have high expectations of us. They expect a more personalized and relevant experience no matter what they are doing, wherever they are. At the same time, they are asking questions – hard questions – of what happens to their data. News cycles on data leaks and breaches point to the lack of transparency and understanding about what happens with their data.

Just look at the recent New York Times article about the use of location data on unsuspecting people. And regulators are taking action: GDPR in Europe, the California Privacy Act, and several other countries and states are looking into privacy regulation. We should not be naïve and believe that this issue will go away.

Enter: AI

And as we consider these challenges with how consumer data is used and shared, AI will drive further complexity into this relationship.

Today most of the consumer data is unstructured, and thereby, difficult to use. With AI technologies, the ability to see patterns, make inferences and predict outcomes will go up significantly. It will help clarify what consumers are trying to achieve: the products that they are looking for, the journeys that they take, and the adjacent or similar products they may be interested in. Additionally, it will help make inferences and help fill in the blanks in data patterns, with much greater accuracy.

There is tremendous potential for AI to make the connections and foster the relationships the digital marketing industry has been chasing for the last decade. But left unchecked, it will likely exacerbate the challenges I highlighted above.

For consumers to trust the media-marketing ecosystem more, we should consider defining a set of principles that articulate responsible and ethical use of data and AI. Our learnings at Microsoft have led to the creation of such a framework:

1. Fairness: Be unbiased and bring diversity of thought into AI design.
2. Reliability and Safety: Operate reliably, safely and consistently under all circumstances – expected, unexpected and when under cyber-attack. Test and verify.
3. Privacy and Security: Design in privacy and security from day zero.
4. Inclusiveness:  Ensure that all AI systems are built to empower everyone. Utilize technology to solve previously unsolvable problems.
5. Transparency: Describe what the system is intended to do in clear language that is easily understandable by everyone.
6. Accountability: Hold ourselves accountable for how systems operate through consistent testing and validation.

Irrespective of which set of principles we choose - we all need to work together – as an industry and within the IAB – to agree upon a version that we abide by, and educate consumers and regulators on their benefits.

Let’s commit. Together.

The notion of using data effectively while focusing on consumer trust are not mutually exclusive. Done well, they reinforce each other. Each of us can start by re-examining our own trust practices. And if we each make a contribution to safeguarding and growing trust, and collaborate effectively, the industry can thrive for decades to come.