Analytics promises to revolutionize business, science, research and education. Powerful algorithms help identify individuals in need of social services, detect fraud, predict the effects of natural disasters, recognize patterns in scientific research and discover trends in consumer demand. Analytics play a role in addressing concerns across all aspects of society – from understanding biology at the molecular level to managing energy resources and improving education.
This paper provides context for “Guidance for Big Data and Analytics: Protecting Privacy and Fostering Innovation” — an industry-sponsored initiative led by CIPL. The goal of this effort is to develop a governance framework for the use of analytics that protects privacy and promotes innovative uses of big data. The paper offers three real-life examples of uses of analytics, and for each describes the data that powers it, the process by which the data is analyzed and the algorithm is applied, its benefits, and how the risks it raises are mitigated. It sets out the challenges to analytics raised in current law, regulation and traditional notions of fair information practices. Finally, it articulates goals for effective guidance that would address the realities of how analytics and big data work, how they may challenge privacy, and their importance for innovation, economic growth and the advancement of societal goals.
While analytics may pose risks, the failure to use it to solve longstanding problems in healthcare, research, education and development deprives individuals and society of the potential benefits of big data. Ideally, thoughtful guidance that takes into account the realities of big data and the nature of analytic processing will empower organizations to use analytics in a robust and responsible manner to arrive at long-sought solutions.
