Data privacy will be the hot topic and the need of every company and startups equally. The coming years would not reward the companies with best products rather ones with the best security will thrive and earn trust over others.
First, it was all about becoming digital.
Then, it was driving digital transformation.
Now, it’s data.
At scale. At speed.
According to a study published by IDC back in 2022, data was doubling every 4 years but now it seems faster. Look at the chart about how much data is collected every year.
Now think about modern AI tools like ChatGPT - How much data is collected over internet to train such large models? Let's talk basic.
How much data as a consumer are you supplying daily to social media sites and tools?
A normal consumer or a marketer using these tools, does not have any wild idea about how much data is being collected daily. Now, comes the interesting part -
Leave your company data. Can you even protect your own phones?
This is the era hackers have been waiting for. In the past year i have seen 5 new multiple ways hackers are running scripts on internet to track a fresh server.
Even before you secure anything, they are installing scripts in your server and i have the proof. This statement was not to scare you off, but to make you informed.
Before going deep inside, this week i had a strategy call with one of my client where we discussed on the how to turn software into an engagement system which works on automation.
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Social media companies collect, share and process vast troves of information about their users while offering little transparency or control, including over how it is used by systems incorporating artificial intelligence, the U.S. Federal Trade Commission said in a report.
The report analyzed how Meta Platforms (META.O), opens new tab, ByteDance's TikTok, Amazon's (AMZN.O), opens new tab gaming platform Twitch, and others manage user data, concluding that data management and retention policies at many of the companies were "woefully inadequate."
Now, this is your data being shared over big platforms who are still struggling behind the scenes to protect their data. Now imagine your company or startup having a good reputation amongst your customers - years of goodwill.
And the black day happens, god forbid it. But let's assume it happens.
What will you do?
Companies that will thrive in coming years are the ones with most secure data. That will be a differentiator for the market.
For many companies, the rising question in board rooms and the C-suite isn’t how to get the data, it’s how to protect it. Across industries, data leaders and decision makers are struggling with the same three challenges: customers increasing awareness of how their data is used, an increasing number of regulations to follow, and a lack of people with the data skills needed to keep their company in compliance.
Data security with Generative-AI
An alarming fact that was done in a recent study that only 24% of new initiatives include a security component. Every organization is now heavily investing in the AI initiatives, most of the investors, institutions are now wanting their investments to include AI component but the security, categorization, multi-cloud environment, ethical considerations are not that actively taken care of. What does this mean?
Data is spread out in more places than ever, and 35% of breaches this year involved data stored in unmanaged data sources—aka “shadow data.” This translated into data not being classified properly or at all, not being properly protected, and not being managed in terms of its lifecycle as it moves into and within the organization. Considering that 25% of breaches involving shadow data were solely on premises, this situation likely highlights unmanaged risk in the form of data governance gaps, data privacy issues, and impending regulatory impact.
Breaches involving shadow data also took 26.2% longer to identify and 20.2% longer to contain, averaging 291 days. This inevitably resulted in higher breach costs averaging USD 5.27 million where shadow data was involved, but those are only the tip of the iceberg here if one considers the spillover effect of breaches to others in the ecosystem, potential contractual issues, and lawsuits are part of a longer tail of costs that continue to add up 2-3 years after the breach.
Predictions
- You will be seeing grander data breaches in coming years.
- Many companies will face data breach and legal problems to scale.
- The companies thriving would be the ones with best data regulations.
- Consumer will be much more informed about every data they share.
If you are developing a software application for large scale usage or following the trend to develop Gen-AI solutions. You should consider taking your data regulations and security structures very seriously.
With more data comes great responsibility.
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Towards secure data and better privacy.
📰 Three amazing articles to make better software that you must read
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Thank you so much for reading this edition of the newsletter, if you found this interesting you would also love my course THE SOFTWARE BLUEPRINT.
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