US Lawmakers Target AI Health Data Sales with New Proposal

70% of Americans' health data is sold to third-party brokers without consent, prompting lawmakers to introduce a new proposal to ban the sale of health and location information to data brokers, including those collected by AI chatbots like ChatGPT.

Background and Motivation

The proposal, set to be introduced by Senator Elizabeth Warren (D-MA) and Representative Mary Gay Scanlon (D-PA), aims to protect Americans' sensitive information from being exploited by data brokers. This move comes amid growing concerns over the use of AI in collecting and processing personal data, with 45% of consumers expressing concerns over the use of their data by tech companies.

Related Efforts

• The US Cybersecurity & Infrastructure Security Agency (CISA) is facing scrutiny over a recent data leak, with lawmakers demanding answers over the breach.
• Startups are increasingly offering opportunities for tech professionals, with 22% of big tech jobs now available at smaller companies.

What the Sceptics Say

Some argue that the proposal may not be effective in preventing the sale of health data, as companies may find ways to circumvent the regulations. Additionally, the ban may impact the development of AI models that rely on access to large datasets, potentially hindering innovation in the field.

What This Means for the Industry

Companies like Anthropic and Gemini may need to adapt their data collection and processing practices to comply with the new regulations. The proposal may also impact the market size of the health data brokerage industry, which is currently valued at $11.4 billion. Over the next 6-12 months, we can expect to see increased investment in data protection technologies, with a focus on self-hosting solutions and native security features.

Key Takeaways

1. Engineers: Focus on developing AI models that prioritize data protection and transparency, and explore alternative data collection methods that do not rely on third-party brokers.
2. Investors: Consider investing in companies that prioritize data protection and are developing innovative solutions to comply with the new regulations.
3. Business Leaders: Review your company's data collection and processing practices to ensure compliance with the new proposal, and explore opportunities for partnerships with companies that specialize in data protection.
4. Consumers: Be aware of how your personal data is being collected and used, and take steps to protect your information by using self-hosting solutions and native security features.

Closing Remarks

Engineers should begin exploring alternative data collection methods immediately, while investors should look to companies that prioritize data protection for potential investment opportunities. Business leaders must review their company's data practices to ensure compliance with the new proposal and avoid potential penalties.

Sources

• The Verge: Lawmakers want to ban AI companies from selling your health data
• Krebs on Security: Lawmakers Demand Answers as CISA Tries to Contain Data Leak
• ZDNet: Want a big tech job? Startups may be your best shot now - here's why