What is ‘personal data economy’ and why should investors embrace it?

Since the dawn of social media and AI, it has become more common to be able to gather data through mere recordings and observations and consequently draw conclusions from them. As remarkable as it sounds, many people were reluctant to embrace the way companies use technology for data gathering.

According to Salesforce’s Jonathan Miranda people were "kind of freaking out, saying 'How did you know this? I didn't even talk to you or give you my information and you've already declined me or approved me?' ”

However, he says it’s important to realise that good companies and service providers’ work should be grounded in transparency.

“Having that relationship of transparency is how they're winning that battle," said Mr Miranda.

"JP Morgan is doing a lot of work with their COIN AI, which handles a lot of their contracting and they will be very transparent and will share with you all of the information they know about you, [which is] lot more than most people think about." 

He said companies usually take time to take a look into your social media accounts, analyse your buying habits, and hear out other information you want to share. —

"The more they know, the better they could be at assisting you in making good financial decisions. Moreover, they could also provide more benefits for their customers who are willing to maintain an open and transparent relationship with them.

“If you give me more information so I can make a better decision about you, I can actually provide you a monetary benefit.

“I've even seen shoe companies that are saying, ‘Share with me your Fitbit information and I will actually drop the price of the shoes $10 and I'll find a better shoe for you because I can see your walking habits.’"

He said that it's "all about" having that relationship with your customers and figuring out what information you're going to use and being very transparent about it.

Nowadays, it has become normal for almost all people to use applications like Uber and Lyft, where they have strangers pick them up and take them to their destination, as well as Airbnb, which can let anyone stay in a place owned by somebody they have never met before. Only a few years ago, it would have been a crazy idea to be so trusting of people you don’t know.

 At the end of the day, customers will do well to embrace the rise of personal data economy—a system of providing services and products to customers who are willing to share information through safe and transparent means in exchange for more benefits.

“[It’s the] same level of conversation where you say, ‘If you share information with me, I provide you a benefit …’ Having the value that's provided to you by you sharing information will just win over the fact that it seems a little bit weird right now,” Jonathan concluded.

Tune in to Jonathan Miranda’s episode on The Smart Property Investment Show to know what artificial intelligence really is, how it is changing the way through which people buy real estate, and how it will make investors more productive.