Human Data Industry

The human data industry is a rapidly growing sector that deals with the collection, analysis, and commercialization of data generated by humans. It is becoming increasingly important for companies across different industries, and social media and fintech are some of the examples heavily relying on human data.

Is the human data industry entirely evil?

Like any industry, it is not entirely good or entirely evil. It can have both positive and negative aspects, depending on how the data is used and who is using it.

On the positive side, the human data industry can be used to develop new products and services that meet the needs and desires of consumers. It can also be used to create more personalized experiences for consumers, such as customized recommendations and targeted advertising. In healthcare, for example, data can be used to develop new treatments and cures for diseases.

Take, for example, a Kenyan startup M-KOPA which provides solar power to off-grid households in East Africa. M-KOPA uses data analytics to assess the creditworthiness of its customers and provide them with affordable financing for solar power systems. The company has collected vast amounts of data on customer payment behavior, which it uses to develop personalized payment plans and improve its credit scoring algorithms.

Another example of a start-up in East Africa that’s leveraging human data is Wasoko, also based in Kenya. Wasoko is an e-commerce platform that connects small retailers with suppliers, and it uses data analytics to track consumer purchasing behavior and preferences. This allows the company to provide personalized product recommendations and promotions to retailers, which helps them increase their sales and improve their profitability.

In Rwanda, a start-up called CanGo, formally SafeMotos uses data analytics to improve road safety. CanGo is a motorcycle taxi-hailing platform that uses smartphone sensors to monitor the driving behavior of its drivers. The company uses this data to provide safety ratings for its drivers, which helps improve road safety and build trust between drivers and passengers.

These are just a few examples of start-ups in East Africa that are leveraging human data to drive innovation and growth. The region is ripe with opportunities for companies that focus on collecting and analyzing human data, and we can expect to see more start-ups emerge in this space in the coming years.

However, there are also negative aspects to the human data industry. The collection and use of personal data can raise serious privacy concerns. If not properly safeguarded, personal data can be misused, leading to identity theft, financial fraud, and other forms of exploitation. Additionally, personal data can be used to discriminate against certain groups of people or perpetuate harmful stereotypes.

Take for instance the examples below when human data was abused.

1. Cambridge Analytica Scandal: In 2018, it was revealed that political consulting firm Cambridge Analytica had obtained the personal data of millions of Facebook users without their consent, and had used this data to influence the 2016 US presidential election. This scandal brought to light the dangers of data privacy breaches and misuse of personal data.
2. Discrimination in Advertising: Online advertising platforms can use algorithms to target specific audiences based on age, gender, and race. While this can be a useful tool for marketers, it can also lead to discrimination. For example, if a company only targets job ads to younger people, it could be accused of age discrimination.
3. Facial Recognition Technology: Facial recognition technology can be used for security and law enforcement purposes, but it can also be used for surveillance and tracking. In China, the government is using facial recognition technology to track the movements of its citizens and monitor their behavior. This can go against laws that safeguard human rights and freedom.
4. Insurance Discrimination: Insurance companies can use personal data to determine the risk of insuring an individual. While this can help them make more accurate risk assessments, it can also lead to discrimination. For example, if an insurance company charges higher premiums to people with certain medical conditions, it could be accused of discrimination.
5. Targeted Disinformation Campaigns: Human data can be used to target disinformation campaigns at specific groups of people. In 2016, Russian hackers used social media platforms to spread disinformation and influence the US presidential election. This highlighted the potential for human data to be used to sow division and spread false information.

These examples show that while human data can be a powerful tool, it can also be misused and lead to negative consequences. Individuals and organizations need to be aware of these risks and take steps to protect personal data and ensure it is used ethically.

Furthermore, the human data industry is not immune to ethical concerns. Companies must ensure that they are collecting data ethically and transparently and that they are not exploiting vulnerable populations or engaging in other unethical practices.

In conclusion, the human data industry is not inherently good or evil. It can have both positive and negative aspects, and it is up to companies and individuals to use it responsibly and ethically. We need to balance the benefits of data collection and use with the protection of individual privacy and the prevention of potential harm.