The formulas to turn enormous amounts of data into information with economic value become the great asset of the multinationals.

Algorithms are a set of programming instructions that, logically introduced in software, allow to analyze a set of previously selected data and establish an “output” or solution. These algorithms are being used by companies mainly to detect patterns or trends, and based on this, generate useful data to adapt their products or services better.

It is not a novelty for companies to obtain data from advanced analytics to study the characteristics of the product they plan to put on the market; the price to which it wants to place it or even private decisions as sensitive as the remuneration policy for its employees. The surprising thing is the dimension.

It is not only that the number of data in circulation has recently multiplied to volumes that are difficult to imagine – it is estimated that humanity has generated 90% of the information of the whole history in the last five years. The possibilities of interconnecting them have also grown dramatically.

Algorithm revolution

This revolution has contributed to each of the millions of people who give their data every day for free and continuously, either uploading a photo to Facebook, buying with a credit card or going through the metro turnstiles with a magnetic card.

In the heat of giants like Facebook and Google, who base their enormous power on the combination of data and algorithms, more and more companies are investing increasing amounts of money in everything related to big data. It is the case of BBVA, whose bet is aimed both at invisible projects for customers -as the engines that allow processing more information to analyze the needs of its users- and at other easily identifiable initiatives, such as the one that enables bank customers to. Forecast the situation of your finances at the end of the month.

Dangers and Risks


The vast possibilities offered by the algorithms are not without risks. The dangers are many: they range from cybersecurity – to deal with hacking or theft of formulas – to the privacy of the users, going through the possible biases of the machines.

Thus, a recent study by the University Carlos III concluded that Facebook uses advertising for sensitive data of 25% of European citizens, who get tagged in the social network according to matters as private as their political ideology, sexual orientation, religion, ethnicity or health.
Cybersecurity, for its part, has become the primary concern of investors around the world: 41% said they were “apprehensive” about this issue, according to the Global Investors Survey of 2018.

What is the future of the algorithms?

This technology is fully functional to meet the objectives of almost any organization today, and although we do not know, is present in many well-known firms in the market. Its capabilities of analysis, prediction and report generation for decision making make it a powerful strategic tool.

Algorithms, either through specific applications or with the help of Business Intelligence or Big Data solutions open the way to take advantage of the information available in our company and turn it into business opportunities.

Thanks to the algorithms we know better how our clients and prospects behave, what they need, what they expect from us. And they also allow us to anticipate the actions of our competitors and market trends.

Like any technological innovation that has revolutionized our way of understanding the world since man is a man, it will take us some time to become aware of this new reality and learn to make the most of it. As citizens and as communicators we can turn algorithms into valuable allies.

The algorithm is at the heart of technologies potentially as powerful as artificial intelligence. Nowadays, algorithms are the basis of machine learning technologies, which surprise us every day with new skills. And it is behind techniques of the setting of virtual assistants or autonomous vehicles.

Author

Maria is communication and tech-savvy with an artistic and creative mind. Colors and devices are what moves her. She has worked on communications and marketing for the last 15 years. When she isn’t glued to a computer or device, she dedicates her time to philanthropy work for different organizations, learning different languages, drawing or painting and spending time with her dogs.

Comments are closed.