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Data Regulation Preparing your Startup for the Inevitable - Ali Shah

Ali Shah
Head of Technology Policy at ICO
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2020 Startup Grind Global Conference
February 11, 2020, Redwood City, CA, USA
2020 Startup Grind Global Conference
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Hello people Hello by so fast that you guys came back from lunch. I applaud you I thank you. Thank you very much. The options were to go out sit in the sun is how about drinks? I woke up all of that good stuff out there, but you came back to listen to be talking about that day you would regulation. Right? So you are good people and I appreciate that has been said, my name is Ali. I'm going to be speaking to you about Gator regulation. And in many ways the title of the slide is a conceit because it implies that it's

inevitable end is coming very many ways. It's already here. It's all around us and I guess we're all of you found it is and employees who are working out starts up and really thinking about how do you build an amazing product to retail customers? This is one of things that you can have to really come to grips with and hopefully in the next 5 10 15 minutes. I'll share some messages with all of you. Hopefully help you along as So let's just get into it. Whenever you really think about what is the equation that defines successful startup, there are many many factors, but the top

four are probably these things right? So you need to have the right problem. First of all, have you really thought about what it is that you're trying to solve? And it's not enough to identify the problem alongside that you have to have the right solution so so much discussion happens about having product Market fit and I think those two things are really cool aspect of choosing what your business focuses on the right problem and having the right solution with two other variables handwriting. I'm having enough money, right

so so many conversations I have with found it with people. I work with people that support is all about making sure that the team is able to execute the idea of the following are the investors and everybody else and that the investors on the community is able to support the ambition while the starter while your company is trying to execute and deliver on whatever young fishes are there was I'm also feeling a little too and what I'm talking about today alongside I equation you not to think about regulation. One more thing right one more overhead, maybe one more area that just seems so

difficult to breath with internalized now, but regulation is one of those things up for you as a father. Is it going to be in pain from day one? When you schedule your ID on the back of the napkin to to all of us investor pictures all of those conversations, you're going to have a guitar number customers as you try and go to market. Are you trying to scale up as you try and build a successful business? The reason is that regulates is like the one I have. My name is Aisha. I'm head of Technology policy of the UK information commissioner's office. And by the way, that's the information

commissioner open screen Elizabeth Denham for her office and I'll roll is really think about what is the role of personal data? How do we make sure that the rights and freedoms that citizens individuals have protected the individuals all of you she take off your corporate lanyards are your thoughts all of you as individuals. How do you make sure that you have the right and ability to leverage your rights? I'm the source of regulation on the social things that we do in the UK for UK citizens are married across Europe, but also here in the US the FTC and others will have a slightly

different variation talking about but the old care about similar things in the role of facilitator. What do you take commission for example have powers extend to being able to do some scary stuff? And she can come in if she feels that there was an issue on task as me and others in the organization to conduct compulsive out its come in and look at what you doing. She can if she thinks that to our investigation something really terrible is happening. Is she what we call a stop processing order. So stop doing what you doing anything really got bad. We have the power

to fine up to folkestone of global Revenue. Play many ways if it gets to that point, it's been a collective failure. We don't really want to sanction. Anybody. We don't really want to have to use those Powers. So the other part of the Roll is really important. And how do we promote innovation in this space supporting entrepreneur businesses so that they can do what they do best. You can do what you do best while helping you understand what the obligations that we are all required to a teacher because we live in a democracy or a spotless Society

messages will be coming from the UK perspective, but they have parallels to the work that you might be doing here in the US. Are you supposed to be thinking about this? Because if on your growth plan for your business you really thinking about how do we reach out the Market's? How do we become International? How do we have a global presence on the standing? What day to regulation means it's going to be really form. I just one more word on dicl information commissioner's office. If you haven't heard of the information commissioner before

I imagine that you've heard of Facebook and Cambridge analytica knowing that information Commissioner's Office the Ico. The organization I work for was responsible for investigating. Those issues. All the time. The icing recipe for those we didn't have the scale of the powers that we now have the outcomes would have been different but we will delete Authority touch me trying to deal with the Fallout from Facebook and Cambridge analytica. That's because personal data is so Central to so many of our online experiences. I find it really difficult to imagine

a business that really isn't as from Level interacting with consumer customer data personal data. My team is really focused on a few different think I'll just give you a quick flavor everything from how do you deploy machine learning AI tools and Technologies in a way that is privacy preserving. What should we do in response to facial recognition? How do we enable data sharing all of these things are the heart have the central question which is what does it mean for a society to make you special day? So I just was noting that there was slightly

different variations in the definition of personal data for the year in the US and the UK or elsewhere in the UK and most of the It's not just information that directly obviously relevant to you like your name or your email address, but also information that could be inferred about you through proxies. So as an example here in the US has zip code is often used as a proxy for your race. You can depending on the day that you have access to keep it from zip code. They live in because of that and because of

some trends that we know the saying it's really important start to think about was how do you prepare so you just a couple of minutes until the trends in crease the vast majority of you are really going to rely on understanding who your customers are. So not sharing some dates. Are you going to carry on? I'm sorry that this is how I feel distress that we are saying from people feeling like companies don't care about what's happening to the end in Marshfield manipulated the man that trusts institutions. They might want the

Press is saying they might feel that Technologies are being deployed that track and manipulate them. All these societal issues are going to carry on his phone. I think we want The Regulators think about so the Ico is the day to regulate in the UK, but we work alongside the completionist authority. We are conversations with the FTC globally with other regular. We're all starting to really recognize an hour jobs come together. I really make sure that citizens are able to have somebody representing them. The trick of course, it's your time do that. No way that also supports

businesses so that we allow businesses you want to do the right thing to be able to do the right thing. The last thing I want to know on the train. We stopped to notice is that privacy been considered as the design stage of a business is going to start without USB. It's already seeing if you were at CES in January or she's releasing some of the price of the last year you probably know is that she's reflecting on this house of Trends and thinking about how would you position your business your ID and your startup? I'm what you need to do. One of

the things I do with my team at the regulator is to really think about how the thought experiment really put myself in your shoes. I really think about well, how can we use personal data? To Naval some amazing benefit for the customer without compromising their rights. And that for experiments really driven by Mike Spence. I'm an engineer. By the way. I only joined the Ico less than eight months ago. I used to work for a large media media technology company is always how do you solve the problem in a way that allows all parties to win? Right? We need to find the

right balance an equation that allows business to do what he needs to do best for all of you who are stop the founders and I'm watching sausage to do what you do amazing. Leave all all at the same time making sure that your customers citizens are able to feel like their rights protected. You ask yourself that question you start to realize something. Alongside product-market fit the other question that will pop into your mind as well. What's the part of society fit? Alongside identifying the right problem and then identify the right solution the questions you can ask yourself as

well as the approach. We're taking the wrong approach you are doing also the how so once we have that something to you. Call Karen have a discussion around to do a couple things we can start to understand why lots of the last text that accompanies or call you from a regulation. I mean, this is a quote from Mark Zuckerberg from last year, but I could put a picture up of anybody from Apple Google you name it most of the large Tech sector companies have really been talking about more regulation the need for mortgage regulations to protect citizens of Fatima rights.

Why is that I think some of it is, I'll text if I'm honest just making sure that the right messages and that hopefully some of it is recognizing that alongside product-market fit. Parts Authority is really important factor. But what can all of you do right? So hopefully your aims will be that one day your the size of a Facebook or a Google or an Apple device exited and been able to cash out an amazing way or you IPL and you will be building the next 10-20 5800 year business that successful.

But right now in this moment when your hustling bro, what can you do to prepare some tips from you first one? How do you know which regulation impacts you I should get it. I mean I've come from an engineering Tech background. It's really difficult to make sense of well, is it gdpr what about the regulations in California? What is the federal states? What about if we want to launch a business in the forest how to make sense of that? Simpleton number one just go on to the website go to the Ice House website. Don't be held back by thinking that is UK Centric so

much of the messaging to support the guidance that we offer will offer you lessons that you can pretty just make use of an organization's but if that's not enough if the pressure is too much if there's other things that you need to focus on to promote the health of your business invest in somebody's coming. It will be the best money you have spent it will be the best investment. You have married because having somebody to try and come in and access your data Protection Officer will insulate you again some of the challenges that you'll see when you try to stand up. Secondly assess

the risk. All you using personal data, that's a cool part of your value proposition. If you are what are the Light lyrics stop my Affair from that on the bottom half of my slide over the reason I emphasize be seized and why it's an opportunity for you to impress those who are like, it'd be fun in your business. Is it make no mistake? We're talkin to venture capitalist Angel Investors another s and asking them to really reflect on the fact that yes, they are. To take risky back. I mean we wouldn't have all of these amazing companies here in the valley if somebody hadn't taken the

chance. But really it's called the assessment process. We are encouraging them to does it do the same sort of risk assessment that we would expect from a more mature company. So we're asking those who are offering you all the funding to go away and do the risk assessment. It's your opportunity of the startup founder to get ahead of our conversation do some of that risk analysis to say. Well, he's the other cheese to my business and deliver for the customer on for you. He's the sort of issues. He's how we might take some action to manage that. Are we dying mind? He's a very difficult one

consider the unexpected. You know how much your part fail your customer your Society. Nobody wants to start off talking about the right. We always want to focus on the positive outcomes what the party will deliver but if in the Cambridge analytica Facebook example look up what consequences were of them. Not really thinking about how their business model might feel their customers and their society. And hopefully all of you will not be impacted by the shows do that quick. So assessment will sit around a table with some coffees. You'll actually we're okay.

What is the unintended consequences of how your products your technology your service Market use that will often catch you out. So I gave your investment time and time that you might take just to have that conversation with your menses your stakeholders. You invested your team to say about this amazing idea. But what can happen if you went wrong? But one of the best things that you can do is really think about how do you design privacy you in front right from the start? Because if you do that you sought to create a foundation that helps build a business that can last decades.

Unrecognized also the right now in this moment Society. There is a God. There is a gap in a how you do with the social problems with him and privacy and I'll write There's an opportunity to really think about for yourselves. Well, does that provide you with the part of Market Gap to really solve this problem for broader Society your customers Frankie regulations. Will thank you, Google. Thank you. But if you do all of those things, I think answering this question about can your business identify the part of market cap is your startup set up in the

right way. And how do you judge Park Society got will be a much easier it crazy equation to balance. That was already for me. I just want to thank you for the soap 10-15 minutes. Are you giving me I will be around for the next half an hour or so if anyone wants to catch me ask me any more detail about what regulation means what's coming up happy to do in the meantime. Thank you very much.

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