This is an example of a broader trend: citizens are becoming increasingly critical of privacy and the way their personal data is used. When companies lack transparency regarding their data practices or, like Meta, openly show little respect for their customers, trust erodes. That doesn’t always happen overnight. People are creatures of habit and tend to be loyal, even when that loyalty isn’t always warranted. That’s why Meta still has billions of users across its various platforms, who, in exchange for free features, allow the company to commercially exploit their personal and sometimes intimate details.
Ethics is not a checklist
But once a tipping point in customer loyalty is reached, a movement gains momentum that is virtually unstoppable. For decades, Kodak was the dominant player in analog photography. The company wanted to protect its existing film business at all costs and delayed the transition to digital photography. Consequently, the company faded into obscurity. More relevant to the present is the damage Donald Trump is inflicting on American industry and international organizations through aggressive and erratic policies. In Europe, more and more companies and governments no longer view the United States as a reliable partner. Where there was once confidence in a global market, sovereignty and resilience are now key topics in public and private boardrooms. Once Europe switches to technology developed on its own continent, a return to American technology is unlikely to happen anytime soon.
Governance as a Prerequisite for Growth
This is a lesson for companies and other organizations that operate in a data-driven manner and give AI free rein to maximize the benefits of the technology. For many, complying with European legislation on data and AI—such as the AI Act—remains a bureaucratic obligation that amounts to little more than checking off a list of requirements. What is missing is a genuine moral awareness and an intrinsic motivation to achieve responsible and transparent use of AI. Unfortunately, there is still no Technology Assessment that allows organizations to practically map out the societal consequences of AI and the underlying data usage. As a result, it is difficult to structurally embed responsibilities in policy and to instill in employees a commitment to acting ethically. Ethical business practices can then quickly devolve into “ethics washing.” This is ultimately exposed by the outside world and causes significant reputational damage, just as several German automakers shot themselves in the foot by cheating on emissions tests for so-called clean diesel cars. A mature, data-driven organization therefore views well-thought-out governance as a means to foster customer trust and thereby secure future growth.
