Strap in for 4 big changes that will impact Personalized nutrition in 2023
We´ve been through a lot these past few years, but it is not the end just yet. There is no doubt that 2023 will be another challenging year to add a feather to our caps of woes, hopes, experiences and dreams.
In this article, we summarize 4 big changes that will impact the Personalized Nutrition industry this year which companies need to be prepared for.
#1 Increased regulation related to the integration of Artificial Intelligence (AI)
AI has been increasingly integrated into many solutions, products and apps with equally increasingly growing ethical concerns from many angles. From lawsuits around Facial recognition, to risking increasing inequality owing to bias is not new, but to date there have only been guidelines, without any legal ramifications for companies who innovate with these new technologies. While many frameworks and white papers exists, the EU and China are really leading on AI initiatives. In 2019, the EU released the EU Framework for ethical AI, and this year towards the summer, things will be hotting up with the release of the AI act.
The new legislation focuses on 4 key areas:
- Unacceptable risks, such as the use of AI in social scoring by governments, like used in China.
- High-risk uses, such as in educational or vocational training, employment, management of workers and remote biometric identification systems, high risk areas are like AI scanning tools that rank job applicants.
- Limited-risk applications with specific transparency obligations (e.g., a requirement to inform users when interacting with AI such as chatbots).
- Minimal-risk AI, such as spam filters.
This means that companies using AI, should audit how they are using data to feed their algorithms and ensure that they have a solid data strategy before the task becomes a massive task once it is written into law.
# 2 Reduced Investor funding
Rising interest rates and inflation, as well as geopolitical crises, halted the frenzied pace of dealmaking set last year. Investors became more cautious with their capital and less willing to place big bets on large, and often unprofitable, tech startups. While the UK attracted the largest amount of investment of any European country this year, it still recorded a 16.1% decline in deal value from 2021, which saw over €30 billion invested.
In Southern-Europe´s largest hub, Spain, saw a 28.5% cut in deal value while neighboring Italy performed better and notched a 62.6% rise.
For example, the proportion of capital by women-only teams has actually dropped to 1% from 3%
This means that companies should expect further tightening of purse strings and needing to look/work harder to find suitable investment.
#3 Generative AI takes hold
I don´t know anyone, who has not given ChatGPT a whirl, even if just for fun. The use of technologies such as NNatural language processing provides the opportunity to analyze, summarize and operationalize natural spoken language. Some great use cases include sentiment analysis, named entity recognition as well as text summarization. This means large volumes of text can be summarized in fluid text that can be even simplified to be suitable for a 6-year old.
While this is great news for saving precious times, this may mean that time-poor professionals will use these new technologies to transition from scanning content, to copy+paste+summarize important but lengthy information. As technology advances, our attention spans will shrink even further, which means that businesses will have to find new ways to grab the attention of consumers.
From a nutritional standpoint, basic nutrition questions can easily be answered by these technologies, however it is less effective in critical analysis of the available scientific literature. Nor is it able (as yet) to make connections between topics that are obviously linked. I know, I´ve tested it. Human intervention via experts is still required here.
Despite this, companies will need to find creative ways to integrate these solutions into their offering or customer service, as such rapid adoption will quickly lead to consumer expectation.
#4 Privacy becomes serious business
This year will mark a profound shift in the philosophy underlying data privacy laws in the United States, from a "harms-prevention-based" to one based on individual rights, exemplified by Europe's General Data Protection Regulation (GDPR).
California who has been at the leading edge for privacy is now leading five other states (Colorado, Connecticut, Utah and Virginia) in enforcing new GDPR-inspired statutes this year. GDPR came into effect in 2018.
The GDPR categorizes between "data controllers" and "data processors", with obligations that apply to each being different. Individuals have several rights under the GDPR including access; correction; portability; erasure; consent for sale or targeted advertising use of their personal information; and appeal if denied any request related to these items.
There are also governing principles such as privacy/data protection by design through record keeping & data minimization as well as transparency & informed consent for legitimate uses only along with best cybersecurity practices plus employee training & appropriate contractual language regarding data handling among others.
A shortlist of new state data privacy statutes to come into effect this year include:
(1) CPRA amended the California Consumer Privacy Act (CCPA), this came into effect on January 1st
(2) The Colorado Privacy Act (CPA) becomes effective on July 1, 2023.
(3) The Connecticut Data Privacy Act (CDPA), goes into effect on July 1, 2023.
(4) The Utah Consumer Privacy Act (UCPA) becomes effective on Dec. 31, 2023.
(5) The Virginia Consumer Data Privacy Act (VCDPA) becomes effective Jan. 1, 2023.
We think these changes are signficant, which require discussion, preparation and an internal champion to stay on top of any developments.
Strap in folks!, it´s going to be fun
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