AI Wealth Truth (50): Why "We Don't Sell Your Data" Is the Biggest Lie

I. Tech companies often say: "We don't sell your data." Technically, this can be true. They may not sell your data files to third parties. But they sell the ability to target ads precisely using your data. That is almost the same as "selling data".

II. Let us understand how data monetization works:

III. An advertiser wants to reach: "a 30-year-old man in a tier-1 city, earning over 20,000 per month, who recently searched for cars." The platform says: I can target that group precisely. The advertiser pays. The platform earns. Your data is used to identify and locate you.

IV. In this process, your data is not "sold out" as a file. The advertiser does not receive your personal information. But you are sold as a "targetable object". You are the product, not the data file.

V. How much is your data worth?

VI. Based on various studies and industry data: U.S. user data is worth about $200 to $1,000 per year. It depends on your income level, purchasing power, and location. High-income users are worth more.

VII. The China market is slightly different, but similar in magnitude. For an active social media user, ad value is around 200 to 400 RMB per year. Add e-commerce data and payment data, and the number is higher. Your digital footprint is a meaningful asset.

VIII. If your data is taken, what do you get?

IX. "Free" services. Free search, free social networking, free video. It looks like a fair trade. But have you actually priced this trade?

X. The problem is: you do not know what your data is worth. The platform knows. They have actuarial teams that calculate each user's value. You do not have that information. This is severe information asymmetry.

XI. How much data do platforms have about you?

XII. Location data. Every place you have been. Your home, your workplace, your frequent restaurants. This can infer your income, lifestyle, and consumption habits. Geographic data is among the most sensitive data types.

XIII. Search and browsing data. What you searched, what pages you visited, where you stayed longer. This reveals your interests, problems, and desires. Your mental activity is being recorded.

XIV. Social graph. Who your friends are, who you chat with, which groups you join. You can be defined by your network. Recommendations like "people nearby are buying" rely on social data.

XV. Purchase data. What you bought, how much you paid, how you paid. This directly reflects your financial status and preferences. Merchants learn what you will pay for, and how much.

XVI. In the AI era, data harvesting becomes more complete.

XVII. AI needs data to train. Your conversations with ChatGPT may be used to train better models. Every piece of feedback you provide is unpaid labor. You help companies improve products, without compensation.

XVIII. AI also generates more content that you will interact with. More interaction means more data. More data means more accurate profiling. AI-driven content makes you expose more.

XIX. How do you protect your data?

XX. 1. Know what you are giving away. Read the privacy policy (it is long, but at least skim it). Know what data is collected and how it is used. Awareness is the first step.

XXI. 2. Use privacy tools. Private browsing mode, ad blockers, VPNs. These can reduce tracking to some extent. Technology can offer some protection.

XXII. 3. Reduce data exposure. Do not fill what you do not need to fill. Do not grant permissions you do not need to grant. Clear browsing history and location data regularly. Leave fewer traces.

XXIII. 4. Recognize the real cost of "free". Every time you use a free service, ask: what am I paying with? If the answer is data and attention, calculate whether it is worth it. There is no free lunch.

XXIV. "We don't sell your data" is a technical truth and a substantive lie. Your data may not be packaged and sold as a file. But it is used to sell you to advertisers. The effect is the same. You are just fooled by more sophisticated wording. In the AI era, data becomes more valuable. AI needs data to train, and every interaction you make creates value. Platforms take that value. You get "free" services. Is this trade fair? You decide.