Tagpolicy

The 3 I’s: Incentives, Interests, Implications

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When discussing how to make sure that tech works to enrich society — rather than extract value from many for the benefit of a few — we often see a focus on incentives. I argue that that’s not enough: We need to consider and align incentives, interests, and implications.

Incentives

Incentives are, of course, mostly thought of as an economic motivator for companies: Maximize profit by lowering costs or offsetting or externalizing it, or charging more (more per unit, more per customer, or simply charging more customers). Sometimes incentives can be non-economic, too, like in the case of positive PR. For individuals, it’s conventionally thought of in the context of consumers trying to get their products as cheaply as possible.

All this of course is based on what in economics is called rational choice theory, a framework for understanding social and economic behavior: “The rational agent is assumed to take account of available information, probabilities of events, and potential costs and benefits in determining preferences, and to act consistently in choosing the self-determined best choice of action.” (Wikipedia) Rational choice theory isn’t complete, though, and might simply be wrong; we know, for example, that all kinds of cognitive biases are also at play in decision-making. The latter is for individuals, of course. But organizations inherently have their own blind spots and biases, too.

So this focus on incentives, while near-ubiquitous, is myopic: While incentives certainly play a role in decision making, they are not the only factor at play. Neither do companies only work towards maximizing profits (I know my own doesn’t, and I daresay many take other interests into account, too). Nor do consumers only optimize their behavior towards saving money (at the expense, say, of secure connected products). So we shouldn’t over-index on getting the incentives right and instead take other aspects into account, too.

Interests

When designing frameworks that aim at a better interplay of technology, society and individual, we should look beyond incentives. Interests, however vaguely we might define those, can clearly impact decision making. For example, if a company (large or small, doesn’t matter) wants to innovate in a certain area, they might willingly forgo large profits and instead invest in R&D or multi-stakeholder dialog. This could help them in their long term prospects through either new, better products (linking back to economic incentives) or by building more resilient relationships with their stakeholders (and hence reducing potential friction with external stakeholders).

Other organizations might simply be mission driven and focus on impact rather than profit, or at least balance both differently. Becoming a B-Corp for example has positive economic side effects (higher chance of retaining talent, positive PR) but more than that it allows the org to align its own interests with those of key stakeholder groups, namely not just investors but also customers and staff.

Consumers, equally, are not unlikely by any means to prioritize price over other characteristics: Organic and Fairtrade food or connected products with quality seals (like our own Trustable Technology Mark) might cost more but offer benefits that others don’t. Interests, rational or not, influence behavior.

And, just as an aside, there are plenty of cases where “irrationally” responsible behavior by an organization (like investing more than legally required in data protection, or protecting privacy better than industry best practice) can offer a real advantage in the market if the regulatory framework changes. I know at least one Machine Learning startup that had a party when GDPR came into effect since all of a sudden, their extraordinary focus on privacy meant they where ahead of the pack while the rest of the industry was in catch-up mode.

Implications

Finally, we should consider the implications of the products coming onto the market as well as the regulatory framework they live under. What might this thing/product/policy/program do to all the stakeholders — not just the customers who pay for the product? How might it impact a vulnerable group? How will it pay dividends in the future, and for whom?

It is especially this last part that I’m interested in: The dividends something will pay in the future. Zooming in even more, the dividends that infrastructure thinking will pay in the future.

Take Ramez Naam’s take on decarbonization — he makes a strong point that early solar energy subsidies (first in Germany, then China and the US) helped drive development of this new technology, which in turn drove the price down and so started a virtuous circle of lower price > more uptake > more innovation > lower price > etc. etc.

We all know what happened next (still from Ramez):

“Electricity from solar power, meanwhile, drops in cost by 25-30% for every doubling in scale. Battery costs drop around 20-30% per doubling of scale. Wind power costs drop by 15-20% for every doubling. Scale leads to learning, and learning leads to lower costs. … By scaling the clean energy industries, Germany lowered the price of solar and wind for everyone, worldwide, forever.”

Now, solar energy is not just competitive. In some parts of the world it is the cheapest, period.

This type of investment in what is essentially infrastructure — or at least infrastructure-like! — pays dividends not just to the directly subsidized but to the whole larger ecosystem. This means significantly, disproportionately bigger impact. It creates and adds value rather than extracting it.

We need more infrastructure thinking, even for areas that are, like solar energy and the tech we need to harvest it, not technically infrastructure. It needs a bit of creative thinking, but it’s not rocket science.

We just need to consider and align the 3 I’s: incentives, interests, and implications.

Monthnotes for November 2018

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This month: Trustable Technology Mark, ThingsCon Rotterdam, a progressive European digital agenda.

If you’d like to work with me in the upcoming months, I have very limited availability but am always happy to have a chat. I’m currently doing the planning for Q2 2019.

Trustable Technology Mark

ThingsCon’s trustmark for IoT, the Trustable Technology Mark now has a website. We’ll be soft-launching it with a small invite-only group of launch partners next week at ThingsCon Rotterdam. Over on trustabletech.org I wrote up some pre-launch notes on where we stand. Can’t wait!

ThingsCon Rotterdam

ThingsCon is turning 5! This thought still blows my mind. We’ll be celebrating at ThingsCon Rotterdam (also with a new website) where we’ll also be launching the Trustmark (as mentioned above). This week is for tying up all the loose ends so that we can then open applications to the public.

A Progressive European Digital Agenda

Last month I mentioned that I was humbled (and delighted!) to be part of a Digital Rights Cities Coalition at the invitation of fellow Mozilla Fellow Meghan McDermott (see her Mozilla Fellows profile here). This is one of several threads where I’m trying to extend the thinking and principles behind the Trustable Technology Mark beyond the consumer space, notably into policy—with a focus on smart city policy.

Besides the Digital Rights Cities Coalition and some upcoming work in NYC around similar issues, I was kindly invited by the Foundation for Progressive European Studies (FEPS) to help outline the scope of a progressive European digital agenda. I was more than a little happy to see that this conversation will continue moving forward, and hope I can contribute some value to it. Personally I see smart cities as a focal point of many threads of emerging tech, policy, and the way we define democratic participation in the urban space.

What’s next?

Trips to Rotterdam (ThingsCon & Trustmark), NYC (smart cities), Oslo (smart cities & digital agenda).

If you’d like to work with me in the upcoming months, I have very limited availability but am always happy to have a chat. I’m currently doing the planning for Q2 2019.

Yours truly, P.

Trust Indicators for Emerging Technologies

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For the Trustable Technology Mark, we identified 5 dimensions that indicate trustworthiness. Let’s call them trust indicators:

  • Privacy & Data Practices: Does it respect users’ privacy and protect their data rights?
  • Transparency: Is it clear to users what the device and the underlying services do and are capable of doing?
  • Security: Is the device secure and safe to use? Are there safeguards against data leaks and the like?
  • Stability: How long a life cycle can users expect from the device, and how robust are the underlying services? Will it continue to work if the company gets acquired, goes belly-up, or stops maintenance?
  • Openness: Is it built on open source or around open data, and/or contributes to open source or open data? (Note: We treat Openness not as a requirement for consumer IoT but as an enabler of trustworthiness.)

Now these 5 trust indicators—and the questions we use in the Trustable Technology Mark to assess them—are designed for the context of consumer products. Think smart home devices, fitness trackers, connected speakers or light bulbs. They work pretty well for that context.

Over the last few months, it has become clear that there’s demand for similar trust indicators for areas other than consumer products like smart cities, artificial intelligence, and other areas of emerging technology.

I’ve been invited to a number of workshops and meetings exploring those areas, often in the context of policy making. So I want to share some early thoughts on how we might be able to translate these trust indicators from a consumer product context to these other areas. Please note that the devil is in the detail: This is early stage thinking, and the real work begins at the stage where the assessment questions and mechanisms are defined.

The main difference between consumer context and publicly deployed technology—infrastructure!—means that we need to focus even most strongly on safeguards, inclusion, and resilience. If consumer goods stop working, there’s real damage, like lost income and the like, but in the bigger picture, failing consumer goods are mostly a quality of life issue; and in the case of consumer IoT space, mostly for the affluent. (Meaning that if we’re talking about failure to operate rather than data leaks, the damage has a high likelihood of being relatively harmless.)

For publicly deployed infrastructure, we are looking at a very different picture with vastly different threat models and potential damage. Infrastructure that not everybody can rely on—equally, and all the time—would not just be annoying, it might be critical.

After dozens of conversations with people in this space, and based on the research I’ve been doing both for the Trustable Technology Mark and my other work with both ThingsCon and The Waving Cat, here’s a snapshot of my current thinking. This is explicitly intended to start a debate that can inform policy decisions for a wide range of areas where emerging technologies might play a role:

  • Privacy & Data Practices: Privacy and good data protection practices are as essential in public space as in the consumer space, even though the implications and tradeoffs might be different ones.
  • Transparency & Accountability: Transparency is maybe even more relevant in this context, and I propose adding Accountability as an equally important aspect. This holds especially true where commercial enterprises install and possibly maintain large scale networked public infrastructure, like in the context of smart cities.
  • Security: Just as important, if not more so.
  • Resilience: Especially for smart cities (but I imagine the same holds true for other areas), we should optimize for Resilience. Smart city systems need to work, even if parts fail. Decentralization, openness, interoperability and participatory processes are all strategies that can increase Resilience.
  • Openness: Unlike in the consumer space, I consider openness (open source, open data, open access) essential in networked public infrastructure—especially smart city technology. This is also a foundational building block for civic tech initiatives to be effective.

There are inherent conflicts and tradeoffs between these trust indicators. But **if we take them as guiding principles to discuss concrete issues in their real contexts, I believe they can be a solid starting point. **

I’ll keep thinking about this, and might adjust this over time. In the meantime, I’m keen to hear what you think. If you have thoughts to share, drop me a line or hit me up on Twitter.

Monthnotes for October 2018

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This month: Mozfest, a Digital Rights Cities Coalition, Trustable Technology Mark updates, ThingsCon Rotterdam.

If you’d like to work with me in the upcoming months, I have very limited availability but am always happy to have a chat. I’m currently doing the planning for Q2 2019.

Mozfest

Mozfest came and went, and was lovely as always. It was the 9th Mozfest, 8 or so of which I participated in — all the way back to the proto (or prototyping?) Mozfest event called Drumbeat in Barcelona in, what, 2010? But no time for nostalgia, it was bustling as always. The two things that were different for me that one, I participated as a Mozilla Fellow, which means a different quality of engagement and two, M and I brought the little one, so we had a toddler in tow. Which I’m delighted to say worked a charm!

A Digital Rights Cities Coalition

At Mozfest, the smart and ever lovely Meghan McDermott (see her Mozilla Fellows profile here) hosted a small invite-only workshop to formalize a Digital Rights Cities Coalition — a coalition of cities and civil society to protect, foster, promote digital rights in cities. I was both delighted and honored to be part of this space, and we’ll continue working together on related issues. The hope is that my work with ThingsCon and the Trustable Technology Mark can inform and contribute value to that conversation.

Trustable Technology Mark

The Trustable Technology Mark is hurtling towards the official launch at a good clip. After last month’s workshop weekend at Casa Jasmina, I just hosted a Trustmark session at Mozfest. It was a good opportunity to have new folks take a look at the concept with fresh eyes. I’m happy to report that I walked away with some new contacts and leads, some solid feedback, and an overall sense that at least for the obvious points of potential criticism that present themselves at first glance there are solid answers now as to why this way and not that, etc etc.

Courtesy Dietrich, a photo of me just before kicking off the session wearing a neighboring privacy booth’s stick-on mustache.

Also, more policy and academic partners signing on, which is a great sign, and more leads to companies coming in who want to apply for the Trustmark.

Next steps for the coming weeks: Finalize and freeze the assessment form, launch a website, line up more academic and commercial partners, reach out to other initiatives in the space, finalize trademarks (all ongoing), reach out to press, plan launch (starting to prep these two).

The current assessment form asks a total of 48 questions over 5 dimensions, with a total of 29 required YES’s. Here’s the most up-to-date presentation:


ThingsCon Rotterdam

Our annual ThingsCon conference is coming up: Join us in Rotterdam Dec 6-7!

Early bird is just about to end (?), and we’re about to finalize the program. It’s going to be an absolute blast. I’ll arrive happily (if probably somewhat bleary eyed after a 4am start that day) in Rotterdam to talk Trustable Technology and ethical tech, we’ll have a Trustmark launch party of some sort, we’ll launch a new website (before or right there and then), and we’ve been lining up a group of speakers so amazing I’m humbled even just listing it:

Alexandra Deschamps-Sonsino, Cennydd Bowles, Eric Bezzem, Laura James, Lorenzo Romanoli, Nathalie Kane, Peter Bihr, Afzal Mangal, Albrecht Kurze, Andrea Krajewski, Anthony Liekens, Chris Adams, Danielle Roberts, Dries De Roeck, Elisa Giaccardi, Ellis Bartholomeus, Gaspard Bos, Gerd Kortuem, Holly Robbins, Isabel Ordonez, Kars Alfrink, Klaas Kuitenbrouwer, Janjoost Jullens, Ko Nakatsu, Leonardo Amico, Maaike Harbers, Maria Luce Lupetti, Martijn de Waal, Martina Huynh, Max Krüger, Nazli Cila, Pieter Diepenmaat, Ron Evans, Sami Niemelä, Simon Höher, Sjef van Gaalen.

That’s only the beginning!

Here’s part of the official blurb, and more soon on thingscon.com and thingscon.nl/conference-2018

Now, 5 years into ThingsCon, the need for responsible technology has entered the mainstream debate. We need ethical technology, but how? With the lines between IoT, AI, machine learning and algorithmic decision-making increasingly blurring it’s time to offer better approaches to the challenges of the 21st century: Don’t complain, suggest what’s better! In this spirit, going forward we will focus on exploring how connected devices can be made better, more responsible and more respectful of fundamental human rights. At ThingsCon, we gather the finest practitioners; thinkers & tinkerers, thought leaders & researchers, designers & developers to discuss and show how we can make IoT work for everyone rather than a few, and build trustable and responsible connected technology.

Media, etc.

In the UK magazine NET I wrote an op-ed about Restoring Trust in Emerging Tech. It’s in the November 2018 issue, out now – alas, I believe, print only.

Reminder: Our annual ThingsCon report The State of Responsible IoT is out.

What’s next?

Trips to Brussels, Rotterdam, NYC to discuss a European digital agenda, launch a Trustmark, co-host ThingsCon, translate Trustmark principles for the smart city context, prep a US-based ThingsCon conference.

If you’d like to work with me in the upcoming months, I have very limited availability but am always happy to have a chat. I’m currently doing the planning for Q2 2019.

Yours truly, P.

What’s long-term success? Outsized positive impact.

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For us, success is outsized positive impact—which is why I’m happy to see our work becoming part of Brazil’s National IoT Plan.

Recently, I was asked what long-term success looked like for me. Here’s the reply I gave:

To have outsized positive impact on society by getting large organizations (companies, governments) to ask the right questions early on in their decision-making processes.

As you know, my company consists of only one person: myself. That’s both boon & bane of my work. On one hand it means I can contribute expertise surgically into larger contexts, on the other it means limited impact when working by myself.

So I tend (and actively aim) to work in collaborations—they allow to build alliances for greater impact. One of those turned into ThingsCon, the global community of IoT practitioners fighting for a more responsible IoT. Another, between my company, ThingsCon and Mozilla, led to research into the potential of a consumer trustmark for the Internet of Things (IoT).

I’m very, very happy (and to be honest, a little bit proud, too) that this report just got referenced fairly extensively in Brazil’s National IoT Plan, concretely in Action Plan / Document 8B (PDF). (Here’s the post on Thingscon.com.)

To see your work and research (and hence, to a degree, agenda) inform national policy is always exciting.

This is exactly the kind of impact I’m constantly looking for.

Monthnotes for January 2018

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January isn’t quite over, but since I’ll be traveling starting this weekend, I wanted to drop these #monthnotes now. A lot of time this month went into prepping an upcoming project which is likely to take up the majority of my time in 2018. More on that soon.

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Capacity planning: This year my work capacity is slightly reduced since I want to make sure to give our new family member the face time he deserves. That said, this year’s capacity is largely accounted for, which is extra nice given it’s just January, and it’s for a thing I’m genuinely excited about. That said, I think it’s important to work on a few things in parallel because there’s always potential that unfolds from cross-pollination; so I’m up for a small number of not-huge projects in addition to what’s already going on, particularly in the first half of the year. Get in touch.

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On Sunday, I’m off to San Francisco for a work week with the good folks at Mozilla because reasons and a number of meetings in the Bay Area. (Full disclosure: my partner works at Mozilla). Last year I’ve done some work with Mozilla and ThingsCon exploring the idea of a trustmark for IoT (our findings).

Image: commons (SDASM Archives)

Should you be in SF next week, ping me and we can see if we can manage a coffee.

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IoT, trust & voice: More and more, I’m coming around to the idea that voice is the most important—or at least most imminent—manifestation of IoT regarding user data. Voice, and how it relates to trust, is what I’ll be focusing on a lot of my work in 2018.

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User profiling in smart homes: Given my focus on voice & trust in IoT this year, I was very happy that Berlin tech & policy think tank Stiftung Neue Verantwortung invited me to a workshop on user profiling in smart homes. It was all Chatham House rules and I don’t want to dive into specifics at this point, but smart homes and voice assistants are worth a deep dive when it comes to trust—and trustworthiness—in IoT.

Connected homes and smart cities

Not least because (as I’ve been hammering home for a long time) the connected home and the smart city are two areas that most clearly manifest a lot of the underlying tensions and issues around IoT at scale: Connected homes, because traditionally the home was considered a private space (that is, if you look at the last 100 years in the West), and embedded microphones in smart homes means it’s not anymore. And smart cities, because in public space there is no opt-out: Whatever data is collected, processed, and acted on in public space impacts all citizens, if they want it or not. These are fundamental changes with far reaching consequences for policy, governance, and democracy.

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Worth your time: A few pointers to articles and presentations I found worthwhile:

  • Kate Crawford’s talk on bias in AI training data is ace: The Trouble with Bias [Youtube].
  • TechCrunch has a bit of a top-level explainer of GDPR, Europe’s General Data Protection Regulation that goes into effect in May this year. It’s being widely lauded in Europe (except by the usual suspects, like ad-land), and been unsurprisingly criticized in Silicon Valley as disruptive regulation. (See what I did there?) So it came as a pleasant surprise to me that TechCrunch of all places finds GDPR to be a net positive. Worth 10 minutes of your time! [TechCrunch: WTF is GDPR?]
  • noyb.eu—My Privacy is none of your Business: Max Schrems, who became well-known in European privacy circles after winning privacy-related legal battles including one against Facebook and one that brought down the US/EU Safe Harbor Agreement, is launching a non-profit: They aim to enforce European privacy protection through collective enforcement, which is now an option because of GDPR. They’re fundraising for the org. The website looks crappy as hell very basic, but I’d say it’s a legit endeavor and certainly an interesting one.

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Writing & thinking:

  • In How to build a responsible Internet of Things I lay out a few basic, top-level principles distilled from years of analyzing the IoT space—again with an eye on consumer trust.
  • On Business Models & Incentives: Some thoughts on how picking the wrong business model—and hence creating harmful incentives for an organization to potentially act against its own customers—is dangerous and can be avoided.
  • I’ve been really enjoying putting together my weekly newsletter together. It’s a little more personal and interest-driven than this blog, but tackles similar issues of the interplay between tech & society. It’s called Connection Problem. You can sign up here.

I was also very happy that Kai Brach, founder of the excellent Offscreen magazine kindly invited me to contribute to the next issue (out in April). The current one is also highly recommended!

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Again, if you’d like to work with me in the upcoming months, please get in touch quickly so we can figure out how best to work together.

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That’s it for January. See you in Feb!

The key challenge for the industry in the next 5 years is consumer trust

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Note: Every quarter or so I write our client newsletter. This time it touched on some aspects I figured might be useful to this larger audience, too, so I trust you’ll forgive me cross-posting this bit from the most recent newsletter.

Some questions I’ve been pondering and that we’ve been exploring in conversations with our peer group day in, day out.

This isn’t an exhaustive list, of course, but gives you a hint about my headspace?—?experience shows that this can serve as a solid early warning system for industry wide debates, too. Questions we’ve had on our collective minds:

1. What’s the relationship between (digital) technology and ethics/sustainability? There’s a major shift happening here, among consumers and industry, but I’m not yet 100% sure where we’ll end up. That’s a good thing, and makes for interesting questions. Excellent!

2. The Internet of Things (IoT) has one key challenge in the coming years: Consumer trust. Between all the insecurities and data leaks and bricked devices and “sunsetted” services and horror stories about hacked toys and routers and cameras and vibrators and what have you, I’m 100% convinced that consumer trust?—?and products’ trustworthiness?—?is the key to success for the next 5 years of IoT. (We’ve been doing lots of work in that space, and hope to continue to work on this in 2018.)

3. Artificial Intelligence (AI): What’s the killer application? Maybe more importantly, which niche applications are most interesting? It seems safe to assume that as deploying machine learning gets easier and cheaper every day we’ll see AI-like techniques thrown at every imaginable niche. Remember when everyone and their uncle had to have an app? It’s going to be like that but with AI. This is going to be interesting, and no doubt it’ll produce spectacular successes as well as fascinating failures.

4. What funding models can we build the web on, now that surveillance tech (aka “ad tech”) has officially crossed over to the dark side and is increasingly perceived as no-go?

These are all interesting, deep topics to dig into. They’re all closely interrelated, too, and have implications on business, strategy, research, policy. We’ll continue to dig in.

But also, besides these larger, more complex questions there are smaller, more concrete things to explore:

  • What are new emerging technologies? Where are exciting new opportunities?
  • What will happen due to more ubiquitous autonomous vehicles, solar power, crypto currencies? What about LIDAR and Li-Fi?
  • How will the industry adapt to the European GDPR? Who will be the first players to turn data protection and scarcity into a strength, and score major wins? I’m convinced that going forward, consumer and data protection offer tremendous business opportunities.

If these themes resonate, or if you’re asking yourself “how can we get ahead in 2018 without compromising user rights”, let’s chat.

Want to work together? I’m starting the planning for 2018. If you’d like to work with me in the upcoming months, please get in touch.

PS: I write another newsletter, too, in which I share regular project updates, thoughts on the most interesting articles I come across, and where I explore areas around tech, society, culture & business that I find relevant. To watch my thinking unfolding and maturing, this is for you. You can subscribe here.