The Untapped Potential of Personal Data as a Digital Asset

The Untapped Potential of Personal Data as a Digital Asset

In today’s digital era, personal data has become the cornerstone of the global economy, powering everything from artificial intelligence to targeted marketing. Yet, despite its indispensable role, individuals—the very source of this data—remain on the periphery of its value chain. Data has been called the "new oil", but unlike oil, it is continuously produced, infinite in scope, and profoundly personal. The pressing question remains: how can we transform personal data from an exploited resource into a recognised, monetisable digital asset owned by individuals?

Having contributed to the drafting of GDPR in Europe and led the implementation of Open Banking across multiple regions, it is clear that data ownership and privacy are not just regulatory challenges but societal imperatives. Years of leading global organisations through transformative challenges have cemented the belief that the way we handle personal data today is fundamentally flawed. From pioneering data-driven payment ecosystems to navigating the resilience of critical systems during cybersecurity crises, the conclusion is undeniable: the future of data lies in empowering individuals—not just corporations or governments—to unlock its full potential.

The Current Landscape: A Digital Gold Rush with Unequal Gains

The global digital economy has surged ahead, contributing 15.5% of global GDP and growing at 2.5 times the rate of traditional industries (World Bank, 2023). Each day, 2.5 quintillion bytes of data are generated data that underpins decisions in healthcare, finance, retail, and more. However, the spoils of this data revolution are far from equitably distributed. Tech giants like Google and Facebook derive over 80% of their revenue from data-driven advertising, yet the individuals who generate this data receive neither recognition nor compensation.

This imbalance reflects a deeper structural issue. Unlike physical resources such as oil, personal data is not treated as a personal asset with intrinsic economic value. Instead, it is extracted, aggregated, and monetised by corporations with little regard for the individuals who contribute it. This model is unsustainable and, more importantly, unjust.

Lessons from the Leaders: Dubai and China Show the Way

Not all regions are clinging to outdated paradigms of data ownership. Dubai and China are leading the charge in rethinking the role of personal data in the digital economy.

Dubai’s Digital Assets Law (2024) is a trailblazing effort that positions personal data as intellectual property, giving individuals ownership rights akin to patents or copyrights. This framework not only aligns economic innovation with ethical data governance but also empowers citizens to take control of their digital lives.

China, on the other hand, has integrated data ownership into its broader AI-driven economic strategy. Treating data as intellectual property, Beijing’s regulatory frameworks emphasise ethical data usage while bolstering the country’s global competitiveness. China’s AI industry, fuelled by personal data, is projected to contribute $1 trillion to its economy by 2030. These models demonstrate that recognising data as a personal asset is not just a theoretical concept but a pragmatic path to fostering innovation and equity.

The Challenges of a Fragmented World

While the progress in Dubai and China is inspiring, many other regions lag behind. In India, for example, the Digital Personal Data Protection Act (2023) has introduced much-needed privacy protections but stops short of addressing data ownership. Public awareness about data rights remains dismal, with over 78% of Indians unaware of their ability to control or monetise their data. Furthermore, the digital divide leaves millions excluded from the data economy entirely.

Southeast Asia faces a different challenge: regulatory fragmentation. While Singapore boasts one of the most advanced frameworks under its Personal Data Protection Act, neighbouring countries like Indonesia and the Philippines lag behind, creating a patchwork of regulations that hinder cross-border data flows. Even in developed economies like Australia, existing laws remain outdated, failing to address the monetisation or ownership of personal data.

This fragmented regulatory landscape limits the global potential of treating data as a personal asset. Without harmonised frameworks, cross-border data exchanges and innovations will remain stunted, and individuals will continue to be sidelined in the data economy.

Emerging Models: Innovations in Data Ownership

Amid these challenges, certain nations are offering valuable lessons in how data ownership can be reimagined. South Korea’s Data 3 Laws provide a framework for secure data portability, empowering individuals to share and monetise their data while fuelling innovations worth $7 billion annually in sectors like healthcare and AI. Japan’s Act on Protection of Personal Information (APPI) emphasises data control and transferability, while South Africa’s evolving Protection of Personal Information Act (POPIA) is exploring ways to integrate data ownership into its robust privacy framework.

These examples underscore the potential of treating personal data as an asset. They demonstrate that with the right infrastructure, individuals can move from being passive participants to active beneficiaries in the digital economy.

Barriers to Progress: Trust, Technology, and Governance

Despite these successes, the road to recognising personal data as a digital asset is riddled with obstacles. A lack of trust remains one of the most significant barriers. Globally, 79% of consumers express scepticism about whether companies adequately safeguard their data (Cisco, 2023). This trust deficit not only hampers innovation but also deepens the divide between individuals and the digital systems they rely on.

Technological infrastructure presents another hurdle. Developing nations lack the secure systems needed for individuals to store, manage, and share their data safely. Blockchain-based data wallets, which could provide a decentralised and secure solution, are still in their infancy. Furthermore, global interoperability is hindered by inconsistent regulatory standards, making it difficult to establish a unified approach to data ownership.

The Future of Data: A Paradigm Shift in Ownership

The path forward demands nothing less than a paradigm shift. Governments, corporations, and individuals must collaborate to create systems that balance innovation with fairness. Harmonised global regulations, such as those developed under G20 initiatives or OECD guidelines, could provide the foundation for cross-border data flows and ownership frameworks. Public education campaigns are also critical, ensuring individuals understand their data rights and the economic opportunities tied to them.

Technology will play a transformative role. Blockchain-based solutions, interoperable digital identities, and secure data-sharing platforms can enable individuals to take control of their data. Transparent compensation mechanisms could allow people to monetise their data contributions, fostering trust and participation.

Conclusion: Unlocking the Digital Economy’s Greatest Asset

Treating personal data as a digital asset is not merely a regulatory challenge—it is an ethical and societal imperative. Having played a role in crafting GDPR to define clear rights around data privacy and security, and leading Open Banking initiatives that made data portability and sharing possible, it is evident that the next step in the evolution of data governance must focus on ownership.

The current model, where individuals passively generate data while corporations extract its value, is unsustainable. Recognising personal data as an asset has the potential to unlock vast economic and social value, bridging digital divides and fostering a more inclusive economy. The journey will not be easy. It will require bold regulatory changes, technological innovation, and a shift in public consciousness. But the rewards—a digital economy that is fair, transparent, and empowering—are worth the effort. The time has come to reimagine the role of personal data, not as a commodity to be exploited but as a cornerstone of individual empowerment and global progress.

Dr. Ritesh Jain is a global expert in financial services, technology, and digital transformation. With decades of experience, he has helped organizations leverage AI to drive innovation, operational efficiency, and customer trust.