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Self-Driving Cars are Here. Are Businesses, Consumers, and Lawyers Ready?

The introduction of the automobile changed not only American transportation, but American culture as well. While automobiles had existed since the late 1800s, they were typically very expensive and unreliable. However, in 1908, Ford released the Model T, an automobile made for the middle class. Sold for a measly USD $850 (a less measly USD $23,000 in today’s dollars), the Model T rapidly gained popularity in the United States [1]. Ultimately, the introduction of affordable mass-market automobiles led to the car-centric transportation system the United States has today. For over a century, this system has persisted, with wide interstate highways and large parking lots dominating American cityscapes.

But even after a century of automobile innovation, relatively little has changed about the fundamentals of driving. At least one passenger must control the car at all times, and if they lose control, even for a split-second, there could be disastrous consequences. Now, in 2021, those fundamentals are beginning to change. With massive tech companies like Uber and Amazon investing heavily in this emerging technology [2], it’s fair to wonder: How soon will self-driving cars become the norm? And how will this eventual change affect tech, law, and culture?

History of Autonomous Vehicles

One of the first autonomous vehicles came just a few years after the popularization of the automobile. However, this car was far from a technological masterpiece, closer to a life-size RC car than an automotive revelation. In 1925, electrical engineer Francis Houdina paraded a driverless sedan with a massive antenna down the streets of New York City. He controlled the car via remote control in a trailing vehicle. Ironically, the car crashed into another automobile full of journalists during the parade [3]. Despite the embarrassing end to the initial showcase, radio-controlled cars became tourist attractions for the next decade. Spectators were amazed by driverless cars, and automobile companies noticed. In 1935, Chevrolet even advertised the benefits of self-driving cars in an automobile safety video [4]. Even when mass-market automobiles were just beginning to flourish, a future filled with autonomous vehicles was dreamt by consumers and automakers alike. However, while automobile companies continued research and development into self-driving cars, it amounted to little else but prototypes and tourist gimmicks.

Beginning in the early 2010s, these prototypes and gimmicks began to have legitimate functionality. Cars manufacturers began to include features that were previously limited to autonomous vehicle prototypes. For example, in 2013, Mercedes-Benz released a luxury car featuring automatic braking, adaptive cruise control and parking assistance [5]. While this tech was exclusive to high-end cars years ago, features like parking assistance and automatic braking are regularly included in more affordable cars today. However, the biggest step toward a future with self-driving cars was made by Tesla. The electric-vehicle company introduced its “autopilot” software in 2015, allowing drivers to take their hands off the wheel while driving [6]. While Tesla’s autopilot feature isn’t fully autonomous, it is one of the first auto manufacturers to produce a mass-market vehicle with significant autonomous capabilities.

Why Autonomous Could be the Future

First and foremost, auto manufacturers are embracing self-driving cars because of their safety. Put simply, humans are not better drivers than robots. Self-driving cars would be able to make split-second decisions quicker than humans. Additionally, an autonomous vehicle future could wipe out incapacitated driving, which makes up 10% of all car crashes [7]. Altogether, one study states that a future with fully autonomous vehicles could cut traffic accidents by at least 34% [7]. While 34% fewer crashes may not seem like a massive decrease, it could have life-saving effects. There were an estimated 36,120 car crash fatalities in 2019 in the United States [8]. If 34% of those crashes were averted by autonomous vehicles, it could save over 12,000 lives each year.

Finally, consumers are drawn to autonomous vehicles because of their convenience. Self-driving cars could put an end to the stresses and anxieties of driving. After all, driving has always required the driver’s complete attention; to the point where eating while driving is heavily discouraged, and texting while driving is illegal in most states. Driving requires full, undivided attention. And for heavy-traffic areas or long road trips, this can be inconvenient for drivers. A future where drivers can send emails, talk to passengers or even nap is incredibly appealing to most drivers. While fully autonomous vehicles are still a long way away, it’s clear why consumers are interested in self-driving cars as well.

Why Autonomous Cars Could Flounder

One of the biggest obstacles facing automakers isn’t one of technological capability, but legal culpability. Right now, in almost every car crash, one of the affected drivers is at fault. Most importantly, the at-fault driver is often on the hook for financial penalties. But if all vehicles are autonomous, and there’s a crash, who is responsible? Because we are nowhere near this level of automation yet, we simply don’t know what the law will be in the era of self-driving cars. Could auto corporations be found at fault? If they are, why would companies continue to make autonomous vehicles if each one could mire the company in a lawsuit? Simply put, there are massive legal questions regarding autonomous vehicles that we don’t know the answer to, and won’t know until self-driving cars are much more integrated into society.

Finally, concern among consumers regarding privacy could cause the future of self-driving cars to sputter. Autonomous vehicles could become yet another device that collects and sells your personal data to advertisers. Even worse, these self-driving cars would have access to loads of unique data points, including travel histories and voice recordings. And because self-driving cars require software updates for new roads, even cars could become subject to ransomware attacks and other cybercrime. While autonomous vehicles can offer unparalleled convenience for their users, they can also force new, invasive forms of surveillance.

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[1] History.com Editors. “Model T.” History.com. A&E Television Networks, April 26, 2010. https://www.history.com/topics/inventions/model-t

[2] Palmer, Annie. “Amazon Zoox Unveils Self-Driving Robotaxi.” CNBC. CNBC, December 14, 2020. https://www.cnbc.com/2020/12/14/amazons-self-driving-company-zoox-unveils-autonomous-robotaxi.html

[3] Engelking, Carl. “The ‘Driverless’ Car Era Began More than 90 Years Ago.” Discover Magazine. Discover Magazine, May 17, 2019. https://www.discovermagazine.com/technology/the-driverless-car-era-began-more-than-90-years-ago

[4] Chevrolet Presents: The Safest Place. YouTube. YouTube, 2013. https://www.youtube.com/watch?v=cilh7br-P80

[5] Ingraham, Nathan. “Mercedes-Benz Shows off Self-Driving Car Technology in Its New $100,000 S-Class.” The Verge. The Verge, May 18, 2013. https://www.theverge.com/2013/5/18/4341656/mercedes-benz-shows-off-self-driving-car-technology

[6] Golson, Jordan. “Volvo Autonomous Car Engineer Calls Tesla’s Autopilot a ‘Wannabe’.” The Verge. The Verge, April 27, 2016. https://www.theverge.com/2016/4/27/11518826/volvo-tesla-autopilot-autonomous-self-driving-car

[7] Baldwin, Roberto. “IIHS Study: Autonomous Cars Won’t Avoid Majority of Vehicle Crashes.” Car and Driver. Car and Driver, November 10, 2020. https://www.caranddriver.com/news/a32783046/iihs-autonomous-cars-not-as-safe-study/

[8] Media, NHTSA. “Early Estimates of 2019 Motor Vehicle Traffic Data Show Reduced Fatalities for Third Consecutive Year.” NHTSA. NHTSA, May 5, 2020. https://www.nhtsa.gov/press-releases/early-estimates-2019-motor-vehicle-traffic-data-show-reduced-fatalities-third

Digital Assistants are Invading your Privacy

Digital assistants have been a part of daily life for millions of people since Apple acquired Siri in 2011 and integrated it into the iPhone 4s. Now, all the big players are in the game. Google, Amazon, and Facebook are competing to be the consumer’s choice for in-home digital help. While the commercials make them look convenient and nearly indispensable for modern life, the truth is users are inviting Big Tech surveillance into their most private moments. In this blog, we’ll make the argument that you should think twice before using one of these services.

Privacy nightmares

The digital assistant marketplace is pretty crowded. Although many smaller companies and startups are coming up with solutions in the space, Apple’s Siri, the Amazon Echo, Google Home, and Facebook Portal dominate the sector. All of Big Tech wants to have an always-on, AI-enabled voice recorder in your home. The question consumer should be asking themselves is ‘Why?’

Well, first off, it’s a growing industry. The market size is over $3 billion this year, and analysts believe it could grow to be an over $40 billion industry by 2027[1]. Obviously, this type of explosive growth is going to attract Big Tech investment.

But what other incentives are there? Well, we know that all of the major tech corporations have had issues with privacy violations in the past. Even Apple, which makes its money from hardware sales and has less reason to harvest mass amounts of user data, has had public privacy issues. To their credit, they at least seem to listen to privacy advocates and either change their policies or at least make them transparent. Unfortunately, you cannot say the same for the others in the space.

Amazon wants to sell more retail items and therefore wants as clear of a profile as possible on its users. That way, it can advertise to them more efficiently. Google and Facebook are even worse. Their entire business models revolve around offering free services to consumers. Nearly all of their revenue comes from personalized advertising. Thus, they have the biggest incentive to collect and analyze everything their customers do while using their products (and many times even after they’re finished using them!)

The pitch

So knowing that these companies don’t take privacy seriously, why do they keep attracting new users? They make a compelling pitch about modern convenience. We live in a society where time is at a premium, and any new gadget that can save a few precious moments is the next best thing. Digital assistants use voice commands, so users don’t have to type out questions or commands. Instead of tapping through a few screens on your phone, you can simply say ‘Call Grandma, ’ and before you know it, you’re chatting with granny about all the birds she’s seen in the yard that week.

This kind of functionality is powerful. You can make and begin music playlists for the big dinner party, schedule appointments on your calendar, or even integrate digital assistants into your smart home. Then, adjusting the thermostat or checking on the oven timer is easier than ever before. But just stop and think for a moment. How much time are you actually saving? Tapping a few buttons is already much more convenient than any previous generation. Suppose your swing-dancing, bird aficionado grandma wanted to make a playlist for a party. In that case, she’d need to have the records she wanted to play at the ready and manually change them out continuously. Sitting at a computer and pulling out your phone, and tinkering for five minutes is already so much easier. In our opinion, the marginal utility you gain from digital assistants is not enough to overcome the privacy issues.

The issue

The main problem with these devices is that they never stop listening as long as they receive power. They may not be recording until they hear the ‘activation word’ (typically some version of ‘Hey!’), but they always listen for that phrase. So, that in of itself is more than a little creepy. But, it opens you up to opportunistic hackers. If a malicious agent wanted to, they could exploit a vulnerability in the device’s software and then have full access to your personal conversations. In the case of the Facebook Portal, which comes equipped standard with a high-definition camera, a bad actor could gain access to video of your home. The truth is, this technology isn’t foolproof either. The devices can mishear the activation word and begin recording conversations you’d prefer to remain private.

Even if a hacker doesn’t actively target you for surveillance, the open secret about digital assistants is that a representative from the manufacturer’s company could be listening to you. They all are known to employ people to do randomized quality assurance checks. In fact, some have heard about the users’ illicit activities! In some jurisdictions, recordings from digital assistants can be used against you in a court of law[2]. Talk about an unwelcome snitch.

Overall, we believe that if you have any concerns about your privacy at all, don’t use a digital assistant. Do things the old-fashioned way (from 2010) and use your fingers. It may mean an extra 15 seconds multiple times throughout the day, but you get the peace of mind of knowing that your private moments aren’t compromised.

Privacy first

AXEL believes that privacy is a right and that tech companies shouldn’t infringe on it. This philosophy drives the development process of all of our software solutions, like AXEL Go. AXEL Go is a secure, private file storage and sharing platform. It gives you the power to choose precisely how private you want your files to be and never collects your personal information or mines your content. Try it now for free and receive a 14-day trial of our Premium service. All of the fantastic features are unlocked and you can see for yourself that tech products and privacy don’t have to be mutually exclusive. Take back control of your data with AXEL Go.

[1] Sneha Korad, Rachita Rake, Vineet Kumar, “Global Intelligent Virtual Assistant Market”, AlliedMarketResearch.com, 2020, www.alliedmarketresearch.com/intelligent-virtual-assistant-market

[2] Erica Vowles, Jeremy Story Carter, “Your Google Home or Fitbit could be used against you in court”, ABC.net.au, March 8, 2018, https://www.abc.net.au/news/2018-03-09/your-google-home-or-fit-bit-could-be-used-against-you-in-court/9510368

How Amazon Is Using Your Data To Make You Buy

In 2018 all eyes are on Amazon. Bezos got crowned the wealthiest man in modern history, and Amazon is overtaking Apple as the most valued tech company in America.

Which begs the question, what makes Amazon so successful? I believe their success comes from the ingenious way they use your data.

Today I’m going to talk about three incredibly smart ways Amazon uses your data to empty your wallet. Let’s dive into it.

Recommended For You Section

Go to Amazon right now and log into your account, I’m sure you’re going to see something similar to this.

The ‘recommended for you’ section uses data from your buying habits to recommend items that you’re likely to buy. The psychology here is very intuitive; as human beings, we have a lot of wants. We want things that we don’t even know exists; its Amazon’s job to show us that they do.

As you buy more things on Amazon, you create a profile of your buying habits. From this profile, Amazon’s algorithm can determine what type of products you’re more likely to buy.

For example last week I was buying chia seeds for a kind of snack I wanted to make. Take a look at the picture above, Amazon’s response was, ‘Hey we see you like healthy seed based products, here’s a few more you should check out.’

All of what I’ve mentioned about the ‘recommended for you’ section ties into a proven principle of persuasion called consistency. The principle of consistency states that you are likely to repeat a similar action that you’ve done in the past. Amazon knows this and with the help of your data they can utilize this principle to sell you more stuff.

Amazon Best Seller List

If you’re like me, from time to time you’ve gone to the best seller list out of curiosity. I remember for a time fidget spinners were at the top, and I couldn’t figure out why (maybe they’re just that fun!?). The ‘best seller list’ is a collection of the best-selling products on Amazon across each category based on buying data from users.

But what reason would Amazon have for giving, you, me, and everyone access to this data? If you think about it logically, Amazon should want to protect that data.

Amazon shares this data with us because it helps them sell more products. Yes, the ‘best seller list’ is ingeniously designed to help boost sales and awareness for products. The ‘best seller’ list achieves this goal by using social proof.

The concept of social proof is simple, in our heads it plays out like this – ‘If a lot of people are doing it, then I should be doing it as well.’

Similarly, when we come across a product on the best seller list subconsciously our mind goes – ‘Hey lots of people are buying this, wonder why people are buying it?’ That spark of curiosity is more than enough to cause a sale.

Frequently Bought Together

And who could forget, right before going to the reviews we always run into the dreaded ‘Frequently bought together’ section. I have a confession to make; this section has caused me to buy more things than I would have liked. If my anecdotal evidence doesn’t succeed in convincing you, I’ll go into the genius of this section.

First, it combines the two psychological principles (Social Proof & Consistency) we saw above. Think about it; Amazon has access to data of all transactions for any product. This makes it easy for Amazon to see trends in consumer buying habits for any product. And once Amazon sees a trend which looks financially beneficial they start pushing for it using the ‘Frequently bought together’ section.

Not to mention, if two products are told to be bought frequently together it also gets you wondering why that’s the case. In some cases, it might be enough curiosity for you to buy the product just to try it out.

It’s subtle, but it’s powerful. Using data from buyers (that includes you) Amazon can make compelling recommendations.

Is Your Data Safe?

After learning about all of this, you’re likely wondering if you should be worried about how your data is being used. The answer is yes, anytime your information is being used to manipulate your decisions, you should be concerned.

But is there anything you can do to make sure Amazon doesn’t use your data? Yes and no, let me explain.

If you decide to use Amazon, there’s nothing that you can do. As long as you buy things on Amazon, your purchase history will be available to Amazon. The only way you can stop Amazon from using your data is not to use Amazon. You’ll end your data going to Amazon, but on the other hand, you’ll miss out on the convenience of Amazon.

Also, as long as you use any e-commerce platform, your data is being collected. It’s not just Amazon who’s a culprit; I’ll bet money every platform is doing the same.

Now that you know how your information is being manipulated, you can be more aware of how things work. Your data is important, and you should be cautious of how it’s being used.