0:00
Welcome to the deep dive. Today, uh
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we're looking at something huge, almost
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like a well, a massive collision course
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Yeah, it really feels like that.
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We've got this incredible speed of AI
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development, new digital spaces like the
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metaverse popping up, digital ID systems
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and all slamming right into this
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incredibly messy, fragmented global
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Exactly. the sources we've pulled
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together really map out just how high
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stakes this battlefield is becoming.
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Right. So, our mission today really is
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to cut through some of that complexity
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for you. We want to make sense of this
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legal patchwork, especially the uh the
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global power plays coming out of Europe
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with AI and content rules
0:41
and also dig into the deeper risks,
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right? This whole idea of surveillance
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capitalism operating in these new
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Definitely. And how governments are
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stepping in trying to control data,
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information flows, even digital identity
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itself. There's a lot to unpack.
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So, we'll be diving into the EU's
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approach, California's enforcement
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actions, and maybe touch on some of
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those bigger almost philosophical
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challenges of digital life today.
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Let's jump in. Maybe start with the
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Europe's really leading the charge with
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The first big comprehensive law for AI,
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That's it. And the core idea is this
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riskbased framework. They've basically
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sorted AI into four levels.
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unacceptable, high, limited, and minimal
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Okay. And the rules get tougher the
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Precisely. So for those high-risisk
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systems, think AI and critical
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infrastructure, hiring, maybe medical
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devices, the obligations are intense.
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What does that look like? More
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Uh much more than paperwork. We're
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talking serious pre-market checks,
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conformity assessments, really detailed
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technical documents that regulators can
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And they have to be registered in a
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public EU database before they're used.
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But it's not just the specific
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applications. They're also regulating
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The foundational models like the big
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Exactly. General purpose AI or GPAI. If
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these models get big enough, hit certain
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scale thresholds, they face a whole raft
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of new rules around transparency,
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copyright, documentation, it's a big
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So Europe setting a global standard
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essentially. Meanwhile, back in the US,
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it's still the Wild West.
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Well, maybe not the Wild West, but
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definitely fragmented. We're expecting
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maybe 20 states to have their own
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comprehensive privacy laws by the end of
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Think Delaware, Iowa, Maryland,
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Minnesota, New Jersey joining the mix.
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20 different state laws. I mean, that
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sounds like a compliance nightmare for
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any business operating across state
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lines. Does that complexity just get
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passed on to us, the consumers? Does it
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cancel out the benefit?
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It definitely creates headaches for
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businesses, no doubt. But you know these
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state laws are pushing boundaries where
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federal action has stalled. There is
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some common ground emerging though
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the big one is data protection impact
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assessments DPAs. More and more states
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are requiring these for anything
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considered high-risk data processing.
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And the definition of what counts as
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sensitive data is getting wider too is
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Oh absolutely. It's moving way beyond
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just say financial or health records.
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Newer laws like in Maryland, Delaware,
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or New Jersey are adding things like
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national origin or transgender and
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It is. And Maryland's definition of
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consumer health data is particularly
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strong. It covers reproductive care,
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gender affirming care info, and puts
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really tight limits on sharing that
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data. Basically, you can only process it
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if it's absolutely essential for a
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service the consumer explicitly asked
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for. That's a major shift.
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Okay, let's pivot to California. They've
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had their law that's CCPA for a while.
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What are the regulators focusing on
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Consistency seems to be the theme.
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They keep hitting companies for
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technical issues and what they call dark
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Dark patterns, like tricking users,
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kind of making things deliberately
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confusing. The Healthline case is a good
3:54
example. Regulators said their cookie
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banner was deceptive. Plus, their opt-
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out tools just didn't work properly. Uh
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Honda and Todd Snyder got flagged to
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basically for bad website design that
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made opting out way harder than it
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So friction by design
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Another big one is ignoring global
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privacy control signals. The GPC browser
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setting. Companies are still getting
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caught not respecting that universal
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Okay. Standard compliance stuff.
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Anything newer? More surprising.
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Yes. Actually the most interesting thing
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I think came out of that Healthline case
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again it was a violation of purpose
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limitation. purpose limitation.
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Yeah. Healthline was apparently sharing
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the titles of articles, people read
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things like living with Crohn's disease
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Wow. So using your reading habits on
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sensitive health topics to target ads.
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Exactly. The state argued that sharing
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went way beyond what a consumer would
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reasonably expect. Even if it was
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technically disclosed somewhere deep in
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a privacy policy, it suggested a medical
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That feels deeply uncomfortable. It
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shows California is looking beyond just
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checkbox compliance, doesn't it? They're
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looking at the actual impact on trust.
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That seems to be the direction. It's
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about reasonable expectations.
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Interestingly though, California's new
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rules on automated decision-making,
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ADMT, ended up being narrower than first
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They're focusing mainly on AI that
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substantially replaces human decision-m
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in really significant areas. Jobs,
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loans, healthcare access, things with
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major consequences. So targeting the
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impact again, not just the use of AI
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It's just such a complex web for
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businesses dealing with PII personally
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identifiable information across all
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these places. Uh we should probably
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mention for businesses trying to
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untangle this resources like
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pi.compliancehub.wiki
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are invaluable for navigating these
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jurisdictional mazes and the growing
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scrutiny. Okay, so that's the regulatory
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mess. Let's talk about the why. Why is
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all this data handling so contentious?
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Well, the core concept really comes from
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Shashana Zubos. She calls it
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surveillance capitalism,
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right? I've heard the term. What's the
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The gist is it's an economic system
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built on grabbing personal data. She
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calls it behavioral surplus and using it
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not just to predict, but ultimately to
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shape our behavior for profit.
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So our data becomes the raw material.
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Exactly. The new means of production.
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And it creates this massive imbalance of
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knowledge and power between the
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companies collecting the data and us the
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And something like the metaverse just
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puts this on steroids presumably with
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all the sensors, eyetracking,
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absolutely turbocharges it. The sheer
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volume and intimacy of data collected in
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potential metverse environments dwarf
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what we see on the current web. And this
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leads to some pretty serious ethical
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problems drawing on critiques from well
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Okay. Can we break those down simply?
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Sure. Think of it in three ways. First,
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alienation. Your data, something you
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produce, gets taken and used against
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your interests, like manipulative
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targeted ads, making you buy things you
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Second, exploitation. Companies profit
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enormously from the data you generate
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just by using their services, your
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clicks, your posts, your attention. It's
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like digital free labor, but you don't
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really get paid fairly for the value you
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right? We get the free service, they get
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the valuable data. And third, perhaps
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most critical, is domination. Because
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they know so much more about you than
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you know about them and control the data
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flows, they gain this power to interfere
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with your choices subtly or overtly
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whenever they want. It undermines your
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That control aspect. It leads us right
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into the censorship debate, doesn't it?
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Especially with the EU's digital
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services act, the DSA.
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It really does. The DSA forces the
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really big online platforms, the VLOOPs,
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with over 45 million EU users to tackle
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And systemic risks sounds pretty broad.
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It is extremely broad
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and controversial. It covers things like
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misleading or deceptive content,
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disinformation, hate speech.
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But here's the kicker. It explicitly
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targets content that is perfectly legal
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but is just deemed well harmful or
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undesirable by regulators or the
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platforms themselves.
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Legal but harmful. That's a tricky line.
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How do they enforce that?
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With massive potential fines up to 6% of
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global annual revenue. The financial
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Yeah. So platforms have a huge incentive
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to just remove content flagged by
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government approved trusted flaggers
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rather than fight it and risk those
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penalty. It encourages over removal. And
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this affects users outside the EU too.
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Absolutely. Because these big US
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platforms usually have one global set of
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terms of service, the DSA effectively
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forces them to apply EU content
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standards worldwide. It exports EU
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speech norms to Americans and everyone
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Have we seen examples of this yet?
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Content being flagged?
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We have. Reports mention things like
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questioning the efficiency of electric
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cars in Poland or even satirical posts
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about immigration in France being
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targeted for removal or labeling
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just for questioning policy or making
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under these broad disinformation or
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harmful contact categories. Yes. When
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you compel global platforms to police
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vague concepts like misleading content
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under threat of huge fines, you
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inevitably end up chilling legitimate
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speech. It's a form of global censorship
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pressure. It's fascinating how these
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corporate and state powers are
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constantly reshaping basic ideas like
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free expression and well privacy itself
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and understanding those core principles
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like privacy a self-determination user
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control over their own information is
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crucial right now for anyone wanting
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deeper analysis on this
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blog does some really insightful work
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tracking how these concepts are
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Okay, so we've got AI regulation,
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content moderation. Let's talk about the
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ultimate data point, identity. There's a
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big push for national digital ID systems
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A very big push often linked to
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biometric data, fingerprints, facial
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scans, iris scans, and frequently aiming
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for centralized, sometimes even
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That sounds risky. Centralizing
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everyone's biometrics. immensely risky.
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Human rights groups, cyber security
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experts, they all raise red flags. A
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centralized biometric database is a
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hacker's dream. A single point of
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failure for the most sensitive data
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And you can't just reset your
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fingerprint like a password.
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Exactly. If it leaks, it's potentially
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compromised forever. You might be, as
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one source put it, unable to restore a
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pristine identity. That's why the strong
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recommendation from experts is always
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enrollment must be voluntary.
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Yes. and governments should actively
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avoid creating these huge central
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biometric honeyotss.
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Are there real world examples of where
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this has gone wrong or shown the risks?
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Definitely. India's adhar system is
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often brought up. While technically
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voluntary at first, it quickly became
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almost essential for accessing basic
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services making it sort of coercive.
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the big one cited is surveillance risk.
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Every time ATAR is used for
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authentication, it creates a log.
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Analyzing those logs over time allows
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for incredibly detailed profiling of
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people's movements, activities,
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interactions, pervasive surveillance
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Okay, so that's one model. Any others?
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Maybe more secure ones.
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Estonia is often held up as a more
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sophisticated example. They use public
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key cryptography, store key data on
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secure chips, not just biometrics in a
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central pot. It's used for digital
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signatures, secure login.
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It's generally considered much better.
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But even the Estonian system had
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vulnerabilities discovered that required
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urgent fixes. It showed significant
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risks were still present. It proves no
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system is totally foolproof.
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So if centralized is risky and even
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sophisticated systems have flaws, are
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there other ways to handle digital
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There are emerging alternatives people
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are excited about. Yeah. Things like
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self- sovereign identity or SSI.
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Self- sovereign meaning the user is in
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That's the core idea. often using
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technologies like blockchain. The goal
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is to decentralize identity data. You'd
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hold your own identity credentials in a
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secured digital wallet on your device
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and only share specific pieces when
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necessary with your explicit consent.
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Giving control back to the individual
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sounds great. What's the catch?
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The catch is often regulation,
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ironically, especially things like GDPR
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How so? Well, GDPR includes the um right
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to erasure, the right to have your
12:20
personal data deleted. But blockchain by
12:23
its very nature is designed to be
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immutable, permanent, and tamperproof.
12:27
Ah, so you can't easily delete data from
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a blockchain record.
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Exactly. Reconciling that fundamental
12:33
conflict, the right to be forgotten
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versus an unchangeable ledger is a huge
12:37
legal and technical challenge that
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hasn't really been solved yet.
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The security questions around identity
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data, especially biometrics that you
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can't change, are just paramount.
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and uh we should definitely acknowledge
12:48
resources like biometric.mmyprivacy.blog
12:50
here they do crucial work digging into
12:53
these specific complex security risks
12:56
associated with biometric data.
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Mhm. Essential reading in this space.
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So pulling this all together, it feels
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like a global race, doesn't it?
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It really does. You've got this
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relentless drive for data extraction on
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one side, surveillance, capitalism, the
13:11
metaverse buildout, and on the other,
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you have these reactive, often
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fragmented, sometimes quite heavy-handed
13:17
regulatory responses trying to catch up
13:20
Like the DSA, the AI act, the US state
13:24
Exactly. And the fundamental tension
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underneath it all remains the same. It's
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a struggle between individual privacy
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and control versus expanding corporate
13:33
and state power over our digital lives.
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Okay, let me throw out one final maybe
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provocative thought based on where this
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seems to be heading. Let's think beyond
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just controlling content or data use.
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What about controlling the answers?
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What do you mean by answers?
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Think about answer engine optimization.
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AEO, we all know SEO, search engine
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optimization that gives you sources,
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links you can check, right?
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Right. Multiple results usually.
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But AEO is different. It optimizes for
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the AI to give you one single answer,
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the definitive response.
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Ah, like the snippets Google shows, but
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turbocharged by generative AI.
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Exactly. And the danger there, I think,
14:07
is really profound. When AI optimization
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replaces source verification AO doesn't
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just filter information, it starts to
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subtly shift what we even perceive as
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That's a powerful idea. It becomes a
14:20
kind of censorship by design happening
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silently in the background. The
14:24
algorithm curates reality,
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right? It normalizes a version of truth
14:28
that's been, as one source put it,
14:30
prefiltered in darkness.
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And that plays right into the liars
14:33
dividend problem, too, doesn't it? If AI
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can generate perfectly convincing fake
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text, images, video,
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and bad actors can just dismiss real
14:41
evidence as fake. And it becomes harder
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to tell the difference.
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Yeah. When the answer engine smooths
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away the friction of debate, the need to
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check sources, the possibility of being
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you know, you end up with a system that
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can serve up a very comfortable, very
14:54
optimized, but maybe fundamentally
14:55
curated reality. And the big question
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left for all of us, for you listening,
14:59
is who gets to decide what the optimal