Article written by Fernanda Arreola (ESSCA) and Álvaro Hidalgo for the Innovation Research Network (RRI) blog.
Companies can easily access and use our personal information, often with our consent - whether we are fully aware of it or not.
Digital applications, software and tools lead to massive data sharing. But data collection does not stop at our digital interactions. It's not just about what we share online; it's also about the everyday devices we use.
Take Roomba, the intelligent hoover, for example. At first glance, it appears to be a simple household appliance designed to make cleaning easier. However, behind this innocuous appearance lies a sophisticated data-gathering tool capable of revealing much more about us than we imagine.
Beyond appearances: how does Roomba collect and use data?
The Roomba hoover doesn't just clean floors. It maps the house, tracks our habits and records our cleaning routines.
Although this may seem trivial, the data collected provides a detailed insight into our home environment. Here's what Roomba can reveal:
- House layout and usage: By mapping a house and tracking cleaning patterns, it's possible to deduce which rooms are used the most, based on how often and when they're cleaned.
- Size and value of the property: The data collected on the size of the house, together with its geolocation, can be used to estimate its market value. Even without a precise address, it is possible to deduce the location of the house via our IP address.
- Financial profile: By combining the size of the property with public records, it is possible to estimate the value of the house, the mortgage and other financial details. This data can then be used to build a profile of the data subject's financial situation, including net worth and income.
The scope of data profiling
Once a company that uses our data has a detailed profile, it doesn't stop there. In theory, Roomba could very well identify certain private practices through a complex chain of data collection:
- Tenant vs. owner: By cross-referencing our IP address with telecoms contracts, companies can determine whether we own or rent our home.
- Full profiling: Through data brokers, additional information such as loyalty card details and shopping habits can be collected. Roomba's data on the number of people in the household and their routines helps companies to create very detailed personal profiles and consumer habits.
- Personal information: These profiles could reveal sensitive information such as health status, eating habits or political affiliations, established from the analysis of our data and through the use of probabilistic models.
Micro-targeting and the power of predictive analysis
Integrating seemingly insignificant data into a broader understanding of personal behaviour is not just theoretical; it's already happening.
Micro-targeting, a marketing strategy that uses data on personal preferences, connections and demographics, allows companies to segment users for targeted content. For example, during the Brexit referendum, personal data was used to influence voter behaviour.
The documentary The Great Hack shows how data from multiple sources was exploited to design targeted ads that in turn influenced public opinion.
One of the most striking revelations? How ‘surprisingly easy and inexpensive’ it was to manipulate the vote using data-driven tactics.
The big picture
Roomba is just one example of how modern devices collect and use data.
Smart refrigerators, connected TVs, voice assistants like Alexa and Siri and even cars are also capable of collecting significant amounts of data.
In many cases, we are unconsciously giving our consent by accepting the terms of use.
As artificial intelligence becomes more integrated into everyday technology, it becomes even harder for consumers to resist this data collection.
Building detailed personal profiles doesn't just tell companies what a person wants - it also lets them know when to prompt them to act.
Research shows that impulse purchases, triggered by well-timed marketing strategies, account for 39% of department stores' revenues. By understanding our habits and triggering these impulses through micro-targeted advertising, companies can make this a winning strategy.
A call for transparency
It is essential that consumers are aware of how their data is being used and that they demand greater transparency and control.
What seems like a simple hoover, television, car or refrigerator is often a gateway to a much wider world of data collection and analysis. It's a reminder of the complex web of information that surrounds us - and the need to remain vigilant about managing our digital footprints.
