Algorithm. It’s a buzzword you hear frequently these days. But does the average consumer understand the impact algorithms have on her life? Absolutely not. Consumers enjoy the illusion of unlimited choice in products, services, and content, but there’s almost always an algorithm behind the curtain, constantly refining and defining what’s presented to her.
Like it or not, we’re in the age of the algorithm.
Unfortunately, many businesses lost consideration for the human amidst the ceaseless data ingestion and optimization of these algorithms, and that’s led to negative outcomes for real people. While some governments are enacting regulation, we don’t think that solves the technology and ethics problem. Rather, we envision a new approach that puts the tools for data control in the hands of people and turns the tide of the impending “algopocalypse.”
In my latest report, “The Algorithm Of You: Meet Your Personal Digital Twin,” I introduce the concept of a personal digital twin (PDT), which I’ve defined as:
An algorithm owned by an individual, optimized for his or her personal objectives. It filters content that is counterproductive to the individual’s goals and identifies opportunities that support achieving them.
PDTs will eventually function as a digital proxy for each of us — they will learn what we value, what we prefer, and how we make decisions. We’ll be able to optimize them for hyperpersonalization, or serendipity. And as we do, the benefits will abound for the organizations we do business with. They’ll finally be able to:
- Reach the right level of customer obsession.
- Reduce marketing spending waste.
- Optimize customer lifetime value.
- Protect their brands from costly privacy and security missteps.
- Build relationships with customers who actually want a relationship with them.