If you’re not paying for the product, you are the product
This phrase is frequently invoked to describe how much of the modern internet works. The digital tools many of us rely on are rarely free in the true sense of the word; instead, they are funded by the collection and monetisation of data about our interests, habits, and behaviour.
Yet, despite growing awareness of this reality, many of us are willing to accept the Faustian bargain. After all, the information being collected often seems trivial, and the systems that capture it are remote and complex. Do I really care if Google knows I need new hiking boots? And if Facebook understands my political views, then so what? I wear them on my sleeve anyway. Surely there are more important things to worry about?
But when we look at the broader picture, we begin to see how the mass-harvesting of our data is fuelling a broad transfer of power and wealth away from citizens, workers, and small businesses and into the hands of large corporations and increasingly authoritarian states.
Technofeudalism
On an economic level, the mass accumulation of data has enabled the transition towards what Yanis Varoufakis calls “technofeudalism”, in which companies like Google, Amazon, and Facebook own and control the markets that others are forced to compete in, charging fees and rents and manipulating markets in their favour. Once established, the companies are free to leverage their market dominance to maximise their profits by driving up the costs for other businesses operating on their platforms while degrading the overall quality of their services.
Systems driven by user data also have a destabilising effect on democracies. Data-driven algorithms designed to keep users engaged can serve up misinformation, driving conspiracy theories and extremism.
The advent of AI tools has added a new dimension to data privacy concerns. Companies now harvest vast amounts of data for model training, including individuals’ personal data, raising new privacy concerns (alongside the significant issues around plagiarism). The tools themselves exacerbate existing online safety issues by facilitating the spread of misinformation and enabling hackers and scammers to carry out attacks more easily.