Executive View: The automotive sector can lead on ethical data

How the automotive sector collects and uses data will shape the future of the industry and that’s why the industry needs an ethical data charter, writes Cap HPI boss Chris Wright.

Data has the power to drive unprecedented efficiencies and economic growth. But also reputational and legislative threats when the industry gets it wrong.

An ethical approach to data must underpin technology developments. As vehicles become increasingly connected and generate vast amounts of data, the sector must establish robust ethical frameworks beyond basic compliance.

While GDPR provides foundational data protection principles, the automotive industry's unique challenges demand more comprehensive standards. Vehicle telemetry, driver behaviour patterns, and location data represent just a fraction of the sensitive information collected by modern vehicles. This data holds immense value but also carries significant risks if mishandled.

The current landscape reveals concerning practices, particularly in data scraping, where intellectual property and copyright protections are frequently compromised. Businesses often use this information unknowingly and are, therefore, unaware of its legal implications and reputational risks.

As artificial intelligence becomes more integrated into vehicle functionality and customer interactions, questions of algorithmic accountability become increasingly pressing. Without proper oversight, automated systems risk perpetuating biases or making decisions that affect consumers without adequate transparency.

Benefits

An industry-wide Ethical Data Charter could address these challenges while delivering tangible benefits. That’s why Cap HPI is advocating for change. It’s vital to set new standards that protect dealers, OEMs and drivers.

Such standards would reduce regulatory risks for manufacturers and dealers and build consumer trust, an increasingly valuable commodity in today's data-driven market. For consumers, stronger ethical standards mean greater control over their personal information and a clearer understanding of how their data is used.

One concern is the use of data collected from connected vehicles. Many consumers remain unaware of the extent to which their driving habits, location history, and even biometric data are being harvested. Without proper safeguards, this information could be exploited for commercial gain, used to discriminate against certain drivers in insurance pricing, or even fall into the wrong hands due to security vulnerabilities.

Transport for London's integration of ethics into Data Privacy Impact Assessments demonstrates how public-sector organisations are taking the lead in responsible data governance. The automotive industry, which handles equally sensitive data, must follow suit. Microsoft's transparent data governance model and Apple's Privacy Nutrition Label initiative offer valuable templates for how private-sector companies can empower users while maintaining commercial interests.

A charter should mandate clear communication about data collection practices, ensuring consumers understand what data is collected, why it is necessary, and how it is protected.

Adherence

Fair use principles must be established to prevent mission creep in data utilisation, while collaborative governance structures can ensure consistent adherence to ethical standards across the industry.

Local authorities like Brent Council have shown how dedicated Data Ethics Governance Boards can provide expert oversight of data projects. The automotive sector should consider similar mechanisms through cross-industry boards that can address sector-specific challenges while maintaining consistent ethical standards.

Establishing ethical data standards proactively will allow the UK automotive industry to position itself as a global leader in responsible data governance. It will also demonstrate that innovation and ethical data practices are not mutually exclusive but rather complementary forces that drive sustainable growth and consumer confidence in the digital age.

The time for action is now.  Waiting for regulatory intervention or public backlash would be far more costly and disruptive. By embracing a proactive approach, the automotive industry can ensure that ethical considerations are integrated into its digital transformation, ultimately benefiting both businesses and consumers alike.

Chris Wright is the vice president of Solera North Europe and heads Cap HPI