How AI Impacts Your Consumer Privacy Data

The range of Artificial Intelligence (AI) capabilities is broad and varies from personalized recommendations and message writing to delivering advanced solutions and diagnostics. However, consumers worry about AI data sharing and its potential impact on their privacy. A reported 57% believe that using AI to collect and process personal data creates a considerable risk to them.

Consumers also have concerns about using AI when they communicate with businesses and try to resolve their consumer issues. That’s why learning customer service tips to understand AI data collection techniques may help you feel more reassured about artificial intelligence data gathering. 

Key Insights

• AI tools collect a host of your data, including personal information, such as name, age, and financial data, like payment preferences. 
• Data sourced by AI can be used to personalize the content brands share with you. 
• You have the right to access and restrict the use of your personal data in certain circumstances. 

How AI Collects Your Personal Data

Personal data is gathered from various sources, such as social media or websites to determine our interests or prompt content which suits preferences. 

What is AI privacy?

AI privacy refers to the protection of personal information relating to AI systems. This also involves questions about AI tools' ethical collection and use of personal data. With 63% of retail organizations using AI to improve customer service, it’s clear consumer issues with AI privacy should be acknowledged. 

What data AI collects

Several categories of data are used in AI data collection, including demographic data, such as age and gender, or behavioral information, like browsing histories. Here is a list of collected data:

• Personal information. AI tools collate customers’ names, age and gender, alongside home addresses. These are key to the personalization of social media content or targeted ads. 
• Behavioral data. This refers to browsing history, online activities and preferences that enable companies to understand consumer behavior more deeply. Also, it includes data from mobile and desktop apps, such as usage frequency and patterns.
• Transactional data. This covers purchasing histories or financial details, such as payment preferences. 
• Feedback data. Customer surveys and feedback around consumer habits help businesses tailor products and services. 
• Location and communications data. AI tools may collect and store tracking information from your smartphones and other GPS-enabled devices, logged locations through social media, and data from navigation apps or ride-sharing services. Such tools can also gather content from emails, text messages, and instant messaging platforms, as well as voice assistance recordings.

Consumer trust in AI can be tested if personal details are shared without consent, so transparency is key to trust building. If you have any questions about AI data privacy, consumer communities like the PissedConsumer Club can help, alongside other consumer issues you may be experiencing. 

Approaches to AI Data Analysis and Gathering 

Multiple AI data collection techniques are leveraged by businesses to improve their understanding of the buyer journey. Some of these AI-gathering tools include:

Cookies

Third-party cookies track users across sites to gather information about a consumer's internet activities for targeted advertising purposes.

Sensors in smart devices

Smart device sensors collect data related to their use within the home. For example, a smart lightbulb can tell how long someone spends in each room. This data helps brands ensure products are satisfying customers. 

Social media interactions

Businesses gather information about customers from social media posts. This can range from the times of day, hashtags or content type to improve personalization. 

Direct user inputs

Consumers directly share information to a business through online forms, live chat or mobile apps, such as transactional data or purchasing feedback. 

How AI Uses Consumer Data

Your personal data is valuable to the businesses you buy from. Brands want to know your preferences and how to enhance your engagement with their products and services. 

• Personalization

With as many as 73% of shoppers saying AI improves customer experience, personalization is key. Brands can leverage data for predictions about products you might be interested in. 

One example of AI supporting personalization is Amazon’s recommendation system. This claims to make more accurate predictions of products customers might want.

Source: aws.amazon.com

Amazon Personalize creates custom recommendations with real-time personalization for users. 

• Predictive analytics

AI predictive analytics help businesses identify customer behavior trends. AI for consumer insights helps brands discover how to predict purchase frequency and product preferences to help smooth customer experiences. 

• Advertising

Once businesses have collected data about customer product choices, they can tailor advertising to align more closely with consumer interests. For example, BMW used AI to create a new advertising campaign in 2021. By applying AI-generated art to the car, BMW effectively engages with its consumers and delivers a personalized experience by allowing them to select art that resonates with their wishes and nature.

Source: www.bmw.com

• Product development

AI data collection techniques help businesses further develop their goods and services so they better suit customers’ needs. 

Consumer Privacy and Data Protection in AI

As a consumer, you have a set of rights that protect your personal data. Some of these include:

• Right to information. You should be informed if your personal data is going to be used to train an AI system. 
• Right of access. You can request access to personal data that has been collected by an AI system. 
• Right to rectification. You can have inaccurate data corrected and incomplete information completed. 
• Right to erasure. It’s your right to have personal data removed in certain circumstances.
• Right to restrict processing. You can limit the way a business processes your data if you have a particular reason.
• Right to data portability. You can control your data and access or move your data across platforms.

Know Your Rights With AI Data Protection

As a consumer, it’s vital you know how your data is collected and used. Privacy concerns with AI are normal, so it makes sense to research your rights. If you have experienced any issues with AI data collection or analysis, share your story and write a review to help other consumers.