A personal AI flop, giving Empowerment Tech to kids, and Apple opens up NFC

Plus: Digital wallets can learn from credit card disruption, USA proposes a GDPR and why KYC is broken

Hi everyone 👋

Thanks for coming back to Customer Futures. Each week I unpack the disruptive shifts around Empowerment Tech. Digital wallets, Personal AI and digital customer relationships.

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First up, it’s time for a couple of announcements:

🚨Customer Futures London Meetup🚨

When: 21 May 2024, 6-8pm

Where: Somerset House Terrace Bar (outside, overlooking the river Thames), Somerset House, Strand, London, WC2R 1LA (here)

Who: All friends and colleagues of Customer Futures… anyone interested in the future of being a digital customer

RSVP: If you'd like to come along, please let me know by either 1) messaging me here or 2) replying by email to the Customer Futures newsletter.

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🎉 MISSION Launch 🎉

I’m also excited to announce the launch of MISSION, the world’s first Empowerment Tech (ET) consultancy.

Together with James Monaghan and Nick Ris, we’ve founded MISSION to help organizations understand - and respond to - the impacts and opportunities around Empowerment Tech.

Because frankly, there's too much noise.

Around self-sovereign/decentralized identity. Around Decentralized Identifiers (DIDs) and Verifiable Credentials. There are Personal AI agents, mobile driving licenses, shifting data regulations, industry consortia, new identity standards and protocols and all the rest of it.

MISSION turns that noise into signal. And helps businesses take action. With tailored insights and actionable recommendations, we’ll also help you make it happen.

To grow the business and empower your customers.

To learn, to build, to invest.

So check out the MISSION website.

We’ll be sharing some regular online videos about all things ET. Here’s the first MISSION report (warning: it’s rough and ready… we want to learn in public: about what works, how to get better, and what topics you want us to cover - let us know!)

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“Life moves pretty fast. If you don’t stop and look around once in a while, you could miss it”. (Ferris Beuller. Look it up if you don’t know, you’re missing out).

Digital life is getting faster. More tools. More news. More digital.

It’s worth pausing and taking a breath. Paying attention to the breakneck speed of digital and AI.

It was only last week that I pointed to Suno, the breakthrough GenAI video platform turning text into pretty credible music tracks.

A week later I can point you to Udio (another breathtaking music maker - seriously, go and listen). And Viggle, where you can replace a person in a video clip with whoever you want.

We’re experiencing a real-time Cambrian explosion of new digital capabilities. I’m not sure how best to keep track, but things feel like they are accelerating.

So if you have 10 mins, this next link might be the most important thing you watch this week. The Six Horsemen of the Digital Apocalypse, by Dr Johnny Ryan.

He covers the state of the EU digital economy (though frankly, it applies globally) through the lens of data rights, digital advertising, of citizen data control. And how they all come together as the Grand Digital Challenges Of Our Time.

It reminds me of watching The AI Dilemma from Tristan Harris back in March 2023 (go watch it if you haven’t seen it).

Like Tristan Harris, Johnny boils down a set of very complex and connected issues into simple terms we can understand. And so we can take action.

He calls for an urgent response.

It’s clear that Empowerment Tech is going to be needed more than ever. Because as Johnny says, too much of our digital response is about ‘incremental’ change.

About evolution, not revolution.

As Ferris Bueller reminds us, things move really fast. If we are not thoughtful - and radical - about what happens next, we’ll become boiling frogs who don’t notice they are being heated up… incrementally.

Empowerment Tech - digital wallets, personal AI and personal vaults - is going to matter a great deal over the next few years.

Because it will unlock new digital value AND trust. Rich data insights AND privacy. New data flows AND security.

As ever it all comes down to the future of being a digital customer. So welcome back to the Customer Futures newsletter.

In this week’s edition:

• Humane AI Pin falls flat

• Apple opens up tap-and-go tech in the EU

• US proposes a GDPR-style privacy law

• Digital ID wallets can learn from the disruption to credit cards

• Google Chrome privacy will radically impact search advertising

• Adobe study finds customers need new digital tools to build trust

• What happens when we give Empowerment Tech to kids?

• … plus other links about the future of digital customers you don’t want to miss

Let’s Go.

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The Humane AI Pin falls flat

So the AI Pin was released, and the market has not been impressed.

A particular low point was the review from internet-famous tech reviewer Marques Brownlee. He said, “it’s the worst new product I’ve ever reviewed… at least in its current state.”

The Verge said, “It’s not even close”. Wired said it’s “not all that useful”.

And Engadget rubbed salt in the wound, saying “…it runs hot, it’s unreliable, it’s slow, the projected screen relies on tiresome and finicky gestures to navigate, it’s expensive for what it does and it has a short battery life”.

Ooof.

I’ve said before that the first iPhone in 2006 also wasn’t great. Nor was the Pebble Watch in 2012.

Both however showed potential. A digital watch that could connect to your phone and manage apps. And a smartphone that had a large touchscreen, a decent camera and the first usable mobile web browser.

The iPhone was the first mobile computer, not just a phone.

We can see something similar here with the AI Pin. A decent voice interface. Interactive data flows. Digital integrations.

An AI assistant, not just a wearable.

There are some nuggets of the future here if you look closely. We don’t know what UI/UX or form factor will win out. But directionally at least we should be paying attention.

More compute. More connectivity. Smarter interactions.

And perhaps - who knows - a digital identity wallet so that the AI Pin can prove it’s me when it’s interacting with others on my behalf (“…book me a taxi to arrive in 30 minutes, with pickup at Tanya’s Bakery on the corner.”)

And while you’re thinking about AI form factor and use cases, check out Limitless, “The world’s most wearable AI”.

It’s a device you wear so you can, erm, record all your chats across Zoom, Slack, Meet, and of course your face-to-face meetings. Meaning you can “preserve conversations, and ask your personalized AI anything”.

“Personalized”.

Look, Limitless is clearly in ‘glasshole’ territory. But there’s something interesting here about interaction and trust models.

For example, AI Pin has a ‘trust light’, so you can instantly tell if it’s recording anything (photo, video, audio). And there are no wake words, so they promise there’s no ‘always listening’. (looking at you Alexa and Siri).

The important part of Marques Brownlee’s review quote above is when he says “…at least in its current state”.

Because Humane will iterate. PinAI will improve.

So I’m waiting for the ‘iPhone 3 moment’. And that took another two years from Apple’s first launch.

So who knows what will be possible by 2026...

MARQUES BROWNLEE’S REVIEW

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Apple opens up tap-and-go tech in the EU

Apple's NFC (tap-and-go) tech is the ‘contactless payments’ part of your phone, and gives you access to the digital wallet.

Today it’s mostly for payments and loyalty.

Two years ago the EU accused Apple of restricting 3rd party app developers from accessing the NFC tech.

And Apple has finally just offered to open it up. Meaning users will be able to decide which default wallet to open when making a payment with NFC.

Whilst this is a big deal for payments (and Apple revenues), it’s potentially a quieter, but bigger deal for digital identity wallets.

Let’s assume digital ID wallets are a good idea (well, you’re reading Customer Futures for a start).

Now think about the user experience.

How will a user be asked to share data from it? If the business already has a connection to the customer’s digital wallet, then the data request can be sent directly, and a notification will appear on the user’s device.

But what about all those other one-time interactions? Where the user has never been to the store before, or the website before, or wants to avoid creating an account?

Many digital wallets today ask the user to scan a QR code. It triggers their digital wallet to open, and consumers are slowly getting used to it.

But for in-person data sharing, what about using NFC for identity? ‘Tap and go’ could quickly become the default for sharing data from a digital identity wallet.

Proof of 18+. Proof of membership to get in. Proof of a valid ticket at that time, in that place. Even ‘proof of existing customer’ in store to get an auto-discount at the till.

The opportunities are wild.

All because Apple will (finally) open up tap and go on the device.

And not just for payments.

READ

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US proposes a GDPR-style privacy law

A new American “Privacy Rights Act” proposes fundamental, enforceable data privacy rights in the US, putting people in control of their data.

Importantly it aims to address today’s patchwork of state laws.

“This landmark legislation gives Americans the right to control where their information goes and who can sell it.

“It reins in Big Tech by prohibiting them from tracking, predicting, and manipulating people’s behaviors for profit without their knowledge and consent. Americans overwhelmingly want these rights, and they are looking to us, their elected representatives, to act”.

READ

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Digital ID wallets can learn from the disruption to credit cards

Dave Birch writes again about the economics of credit cards. And how things are being shaken up with the adoption of ‘account-to-account’.

“With big billers such as Verizon, AT&T and T-Mobile asking customers to shift monthly payments from their credit cards to bank accounts, they are leading a trend that will only grow stronger as instant payments, open banking and digital wallets gain traction.

“Now, I understand perfectly well the factors that point to cards continued to dominance are real, but if we take them altogether then it seems to meet that there are two key factors that will determine the shift from cards to account-to-account (A2A) payments.

“These are consumer protection and customer rewards.”

Why am I pointing to this?

Because:

1. There’s a very real link between payments and identity. And shifts around personal data control, like with ET, will impact both;

2. Dave points to the use of digital wallets as a big factor impacting the disruption to credit cards; and

3. Most importantly, we can look at Dave’s view of the two key factors impacting cards - consumer protection and customer rewards - as direct parallels for adoption in the digital ID market.

There’s a longer post to be written here about payments, credit cards, A2A payments and rewards. And how Empowerment Tech is about to change the payments landscape too.

But the main takeaways are this:

First, if you want to introduce new digital identity and wallet tools, business processes and customer experiences, then you’d better understand both data liability (and protections) and customer behaviour change (and incentives like rewards). Just like Dave’s diagnosis of the shifts around credit cards.

Second, the main disruption around credit cards is about the economics, not just convenience.

We’d better understand how digital identity is paid for, when, and by whom, before trying to introduce any new-fangled digital wallet tech and identity governance frameworks.

Because it’s not just about disruptive tech. It’s about the fundamentals of a market, including cost structures like sources of identity data.

DAVE’S POST ON CREDIT CARD COMPETITION

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Google Chrome privacy will radically impact search advertising

Google is developing a new way to handle privacy for Chrome users. And it will have knock-on impacts for advertisers targeting you based on your location.

“For ad location targeting, you’ll only have the option to target regions designated by Google, which won’t be accurate.

“Because Google Chrome will use a proxy to connect to websites, it will mask users’ identities, meaning advertisers cannot distinguish between genuine and bot traffic.

“Google is increasing its collection of uniquely valuable location data, which could increase advertisers’ costs.”

It’s another move to make things more ‘private’. Pay attention and you’ll see that this is really about the business model.

Why does this matter?

Because if you control the data, you control the value. And if you control the value, you win.

Location data is useful for all sorts of stuff. Track where I am. Directions. Location-based advertising. Google sits in the middle of all that. ‘Masking’ users from advertisers (good), but dominating the use of that data (bad).

Why can’t I use my own location data, and ‘pull’ digital services to me?

Because today I don’t have good enough digital tools to make that possible. Right now I only get to use a web browser.

Meaning the market is dominated by Google (65% marketshare) and Apple (18%). Controlling our data flows and our internet profiles.

The arrival of digital wallets, Personal AI and verifiable credentials - aka Empowerment Tech - will mean I can selectively share data with other parties.

Soon, that personal data will include an anonymous advertising profile. Perhaps my location.

The potential to cut through the advertising hellscape/quagmire is vast.

But it will only be possible using new digital tools of our own that are not mediated by BigTech (as we see in the opening rant of this newsletter, and Johnny Ryan’s ‘Horsemen’ video).

GOOGLE’S LOCATION ‘PRIVACY’ UPDATES

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Adobe study finds customers need new digital tools to build trust

Adobe just surveyed 6,000 consumers across the U.S., U.K., France and Germany, about misinformation, the impacts of generative AI and digital trust.

As you’d expect, most people (well over 70%) say it’s difficult to check if online content is trustworthy. And many (40% in the US) say they’ve stopped using some social platforms due to misinformation on them.

But the takeaway point for me is that almost everyone (nearly 90%) believes that it is essential that they have the right tools to verify if online content is trustworthy.

In other words, to not only know where a piece of content has come from (e.g. AI or not), but if it’s been altered.

There’s quite a bit of noise now coming out of the Content Authenticity Initiative, involving some big brands including Adobe, Arm, BBC, Intel and Microsoft.

And guess what? They’re working on Portable Verifiable Credentials.

A core pillar of the Empowerment Tech stack.

Because we need the same trustworthiness for interacting online. From other people and businesses to digital products and content.

For those interested, check out the C2PA. Working on an open technical standard for anyone (publishers, creators, consumers) to trace the origin of different types of media.

Digital trust is digital trust.

I predict this is going to combine with ET in a big way.

ADOBE TRUST STUDY, CAI, C2PA

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What happens when we give Empowerment Tech to kids?

Here’s a completely different take on Empowerment Tech. And I don’t know where to start.

Ofcom, the UK tech and comms regulator, has released a report about children’s use of tech.

I nearly spat out my tea:

• A quarter of 5-7 year olds in the UK now own a smartphone

• 76% use a tablet

• 38% use social media sites or apps (WhatsApp (37%), TikTok (30%), Instagram (22%) 

• 32% of these parents say their child uses social media without supervision

Sorry what pardon?

Look at this through an ET angle.

Let’s assume these very young children (48% of whom have personal profiles on YouTube or YouTube Kids) will soon get access - authorised or otherwise - to smart digital agents.

How on earth will we manage the fallout, when they can ask the agent to go and do things on their behalf?

Will we rely on Meta and Google to tell us how things will work, and to protect us? Because many of these children have to be lying about their age to get access to these digital tools. They are 5-7 years old.

We talk about ET use cases like smarter customer services, form filling, ID checks and helping manage receipts.

Grown-up things.

But what about children and ET? What becomes possible? What are the downsides and terrible impacts?

I’m optimistic that questions around digital ‘guardianship’ - where one legal entity (e.g. parent) is responsible for another (e.g. child) - will be solved soon as part of the latest digital wallet research, regulations, and market forces.

But these solutions will take time. Certainly longer than the time it will take for brands to release digital personal AIs into the market. Apparently coming later this year in GPT5.

And you’ll note that Meta just added AI chat - and presumably soon smart agents - into the WhatsApp app.

What am I missing? How should be thinking about children and Empowerment Tech?

Because you can bet that our kids will inevitably get their own personal AI soon after - or even at the same time as - the grown-ups do.

READ

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OTHER THINGS

There are far too many interesting and important Customer Futures things to include this week.

So here are some more links to chew on:

• Article: Simon Taylor’s latest long read on ‘KYC is broken’ READ

• News: UK Government publishes it’s Smart Data Roadmap READ

• Podcast: Problems Worth Solving in SSI Land WATCH

• Post: Using X.509 Certs for DID Provenance (one for the DID nerds) READ

• Paper: Giving an AI product a human name changes how much people trust the results READ

• Post: CODE sends an open letter to the EU about BigTech’s non-compliance with the Digital Markets Act (DMA) READ

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And that’s a wrap. Stay tuned for more Customer Futures soon, both here and over at LinkedIn.

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