We are in the midst of one of the fastest hype-cycles of the digital age. The introduction of generative AI now has the potential to change how we navigate our everyday lives.
Gen AI has “caught the attention of executives like nothing I’ve ever seen,” Scott Snyder, a senior fellow at the Mack Institute, says in Knowledge at Wharton. And I agree. Looking a bit more broadly, I see two digital transformations happening in parallel, both of which will have a profound effect on the way we shape our future.
The first is generative AI. The second is the move to digital identities.
Nations around the world are reimagining the entire concept of identity verification. Just as generative AI will begin to influence how we live our daily lives and earn a living, it will also alter how we prove our identities, whether in financial transactions or getting access to healthcare.
Several factors are driving this paradigm shift:
- Integrating digital identity protection into companies’ security protocols is now an essential part of safeguarding online transactions.
- Because of the level of online fraud and growing concerns about consumer welfare, governments worldwide are scrutinising digital identity frameworks.
- In places where it has been tested, people value the convenience of being able to safely access identity documents across their devices.
Transitioning from Physical to Digital-First Identities
In some geographies, the initial move from tradition to digital identity is underway. While the influences spurring this change are similar around the world, the way countries are responding differs.
Physical first is the current standard. In most regions and countries, identity documents are still physical. Take the United States for example, if you are an Apple customer, you can scan your driver’s license, store it in your phone’s digital wallet, and call it up whenever you need to confirm your identity. However, the digital image in the wallet isn’t issued by a state’s Department of Motor Vehicles. While it is a verifiable credential, it isn’t a true digital identity document.
More recently, digital-first identity systems offer a true digital credential. While a physical version may or may not be available, the digital version is recognized in the same manner as the physical one. For example, Estonia issues digital driver’s licenses as part of its e-identity program, while India has rolled out the largest national digital identification program in the world.
Next up: Individual-First Digital Identities
Several countries and organisations are already creating technical standards drafts that focus on the practical aspects of creating a secure digital identity system. They are looking into how a person will register or enroll, how the information that person provides will be authenticated, and how a federation will be created across governmental and geographic boundaries.
Although these points are essential, we need to also look into the development and adoption of those standards within a larger individual-first digital identity ethical framework.
An individual-first digital identity system would ensure that people and their rights are at the centre of any digital identity system. It would provide the benefits of digital identities—the highest levels of online security and safety available—while, at the same time, giving consumers and governments confidence that personal identity information would be respected.
An individual-first identity system would be centered around a person’s right to control their own identity and related data. At its most basic, it would require:
- Individual consent before the collection of personally identifiable information.
- Full transparency about how, where, and by whom an individual’s information could be used as well as the ability to remove personal information if asked.
- A strong focus on privacy and security by design, an ability to recover individual identity data if it’s lost or compromised, and provisions for strong enforcement.
Three steps to shaping Individual-First Digital Identities
Our community can play an important role in shaping individual-first digital identities. The fundamental question before us is: how can we actively influence and foster the development of such identities? I see three areas where our expertise can help steer governing bodies in a positive direction:
- We must make sure our voices are heard, as government and businesses reimagine the concept of identity. It transcends mere documentation; it embodies the unique attributes of each individual. Shifting our mindset from document-centric to rights-based identity allows us to focus on granting individuals the entitlements they rightfully deserve. For example, accessing financial accounts, crossing borders, or making travel arrangements.
- Practicality should guide our approach. Identifying essential identity verification requirements and tailoring business models accordingly ensures efficiency without compromising privacy.
- Most importantly, every initiative must be founded on ethical principles: avoid collecting unnecessary data, make sure you obtain explicit consent, and handle information with care and transparency. Seamless execution, grounded in these principles, will reinforce trust and integrity in the digital identity ecosystem.
As technologists and technology leaders, finding ourselves in the middle of parallel digital transformations is exciting and a once-in-a-lifetime opportunity. By working together, we can influence the development of standards and regulations so that we reap the benefits of these new technologies while also protecting data, companies, and people worldwide.
