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Why You Should Be Concerned About Consumer Data Privacy

Billions of data records have been breached to date. In the United States, 45% of respondents to an RSA Data Privacy and Security Survey openly admitted that they have been a victim of a data breach. Consumers are becoming more privacy-conscious due to the frequent leaks of private consumer data and increasing media attention.

More Regulation = Higher Expectations

The EU’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) are becoming a wake-up call for U.S. businesses. Consumer data has become incredibly valuable for businesses and consumers know how businesses are using it. Privacy is critical for consumers. They have a higher expectation as to how their data is handled. While many U.S. companies were not convinced that the GDPR applied to them, the CCPA will. 

The CCPA law went into effect on January 1, 2020. Under the CCPA, consumers can have their personal details removed from databases and can also block companies in California from selling personal information. However, businesses still need data to operate while consumers will rightfully demand more privacy. Many traditional ways of handling and using consumer data will need to change as a result, since most of the companies relied on the ability to share all raw consumer data. The privacy law may also extend outside of California if businesses give these privileges to customers outside of the state too.

Companies should take considerations to ensure that they are ready for a future that is focused on consumer data privacy. There are new approaches that both protect the privacy of the consumer and also allow companies to have insight into their customer data. Companies can enact strict internal rules for how customer information is shared amongst internal employees and external partners and ensure that external parties do not have access to their customer’s Personal Identifiable Information (PII) data or store that data. 

Watch Outlier’s CEO Sean Byrnes Talk about the Importance of Consumer Privacy on TD Ameritrade Network

Invest in Methods That Don’t Leverage Consumer Data

Companies like Outlier are already ahead of the curve by not accessing or using PII data for analysis. Outlier uses Artificial Intelligence (AI) and machine learning (ML) to analyze billions of data points for its customers every day, yet it does not accept, analyze, or store PII of any kind. The Outlier approach is powerful. Customers get the same results as they used to get from trading PII, but without the privacy implications. 

AI and ML allow Outlier to provide their customers with powerful data analysis while simultaneously not transferring any PII data. AI enables customers the best of both worlds: the data analysis, as well as the data security and customer privacy, that they need to be successful in their business. 

For companies that depend on up to the minute customer details to help inform their products and marketing, GDPR and CCPA are drastically changing the way they operate their internal business practices. Companies must now consider what consumer data they are recording, where that data is being stored and how that data is accessible to be one of the most important business decisions they make. As history has already shown, publicity from a consumer data breach is extremely hard to recover from and can even lead to a company’s permanent demise. 

Watch this demo to learn how Outlier analyzes consumer data without leveraging PII.