The Economics of Privacy in the GenAI Era

Modern AI systems infer underlying traits, combine signals across contexts, and generate outputs that can affect prices, rankings, access, and treatment in ways that are difficult to foresee at the moment data are disclosed. This changes the structure of how we should think about what it means to protect a consumer’s privacy. First, the consequences of disclosure become less knowable because what matters is not only what data are collected, but what future inferences become possible. Second, p