How Online Privacy Issues Will Shape Future Use Of Artificial Intelligence In Advertising Posted on : Mar 02 - 2021

The trend toward greater focus on privacy issues has been going on for some time and is starting to come to a head. More restrictions on the sharing and merging of data on individuals has been leading to advertisers to look for effective ways to target and reach consumers, including using the use of behavioral targeting supplemented by the use of artificial intelligence (AI).

At a time when privacy regulations are sometimes fragmented and confusing but changing, it is critically important for marketers to monitor changes in the regulatory environment. Against this backdrop, I interviewed Sheri Bachstein, IBM's Global Head of Watson Advertising to get her insights and predictions on the future of privacy regulation and how it will affect advertisers, particularly as regards the use of AI and came away with three major takeaways:

1)   The need for standard federal regulation of data privacy in the U.S. is pressing.

The European Union’s General Data Protection Regulation and the California Consumer Privacy Act are already leading to the devaluation of traditional third-party cookies and the way many advertisers do business. Yet, the lack of uniform regulation creates a significant gray area for companies who want to scale and use AI in targeting, creating problems for technology companies and marketers.

Bachstein believes that federal legislation as opposed to a patchwork of state laws is needed in order to allow for standards that allow marketers to operate effectively while protecting consumer rights. Citing lack of agreement on what “sensitive data” means to different constituencies, she asserts: “We feel that data privacy principles such as transparency, user choice, as well as overall accountability should be taken into greater consideration when designing policy that is consumer driven. When you talk about “sensitive data” that is a great example of why we need industry standards. We all need to have the same definitions for types of data so that industry players work with clearly defined terms that are consistent across the U.S.”

Bachstein also notes that industry needs to unite behind a standard playbook and the effort to get federal regulation should be include an array of industry partners, councils, and big tech companies collaborating with lawmakers in order to incorporate multiple viewpoints and ensure that the legislation is effective across the entire ecosystem. View More