Smart city data ethics: The importance of consent in smart city data usage

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  Quantumrun Foresight
• July 25, 2022

Insight summary

Smart cities face ethical challenges with data use, including privacy erosion and bias in artificial intelligence (AI), requiring more responsible governance and public awareness. London exemplifies proactive measures in data ethics to ensure transparent and responsible use. The implications are far-reaching, affecting citizen control over personal information, the demand for transparency in online services, and labor market shifts towards digital literacy and data ethics.

Smart city data ethics context

As cities become smarter, big data collection becomes more necessary than ever to automate and analyze digital services. However, these collection activities can sometimes result in serious data privacy violations. How can smart cities ensure that they handle data responsibly?

As city governments and other firms put all sorts of sensors and data-gathering infrastructure in public spaces, new ethical challenges emerge around using data in smart cities. These challenges include the erosion of privacy through constant mass surveillance at a vast, intrusive scale. Notice and consent are often an empty exercise or absent for many systems. Automation, while helpful, continues to create confusion and reduces oversight and ownership of data usage, including undeclared data sharing. 

Many other issues arise as smart cities become increasingly interconnected; for example, new and more extensive governance regimes, predictive profiling that can potentially discriminate based on race and gender, as well as other biases in data collection and artificial intelligence (AI) analysis systems. Control creep, wherein technologies deployed for one purpose are extended to another, is also an urgent problem. Urban residents are often not informed that their biometrics will be used on multiple platforms. Additionally, as cities start to rely heavily on machine-to-machine communication, there are increasing threats of hackers infiltrating security systems of public venues and services, leading to personal data breaches.

Disruptive impact

There are numerous options to address data ethics issues in smart cities. Increased investment in governance is a must so that cities have the resources to manage and control the data they collect. Privacy should remain a priority by ensuring that services are designed with security in mind, and that the public controls how their data is used. Municipalities can also be honest about the benefits and risks of data-driven services, and incorporate ethical considerations into their partnerships with the private sector. Cities can also use algorithms more responsibly by being aware of these systems’ potential biases.

One example of a city actively centering data ethics in its development plans is London. The UK capital has been proactive in establishing guidelines and regulations to ensure data ethics are considered in smart city initiatives. The London Data Charter, created by business group London First, stands out among these proactive initiatives as it outlines seven principles for businesses and public sector organizations when sharing data. These principles include: Delivering benefits for Londoners; Driving inclusive innovation; Protecting privacy and security; Promoting trust; Sharing learnings with others; Creating scalable and sustainable solutions; Be as open as possible.

In addition, the city has established a Data Protection Impact Assessments (DPIAs) register, which is legally required in any data processing with a high risk to individuals’ privacy. This transparency measure ensures that Londoners know how privacy risks have been identified and managed. The city also released its Emerging Technology Charter, which outlines the expectations for data-driven systems implemented in the UK capital.

Implications of smart city data ethics

Wider implications of smart city data ethics may include: 

• Smart city initiatives leading to more stringent laws for data management and usage, resulting in heightened citizen awareness and control over their personal information.


• Online services and apps experiencing intensified demands from users for transparency in data handling, fostering a culture of accountability and informed consent.


• Enhanced optional participation in smart city services, like biometric-based public transportation, offering citizens choice and privacy in their daily interactions.


• Escalating concerns over public surveillance, particularly facial recognition in law enforcement, prompting debates over privacy rights and ethical policing.


• Economic models in tech industries shifting towards privacy-focused services, catalyzing new market opportunities and consumer preferences.


• Political discourse intensifying around the balance between technological advancement and individual rights, influencing future legislative agendas.


• A rise in employment opportunities in data ethics and privacy sectors, addressing the increasing demand for professionals adept in ethical data management.


• Labor markets adapting to the growing need for digital literacy, reshaping education and training programs to equip workers for a data-driven economy.

Questions to consider

• How else do you think governments can monitor how smart cities use and store data?


• What are the ways you protect your personal data when accessing digital and public services?