What does 2025 hold for smart data innovation?
According to Linda King, chief of strategy and engagement at Edinburgh’s Smart Data Foundry (SDF), a subsidiary of Edinburgh University, smart data can be used to harness financial data to combat poverty, reduce inequality, and enhance economic wellbeing.
Here, she makes a number of predictions for 2025, which could unlock economic growth and strengthen public services.
1) Regulation and legislation will change the data landscape
The new Data (Use and Access) Bill which is currently going through Parliament will reshape how organisations collect, share and access data. This landmark legislation aims to create a balanced ecosystem – one that prioritises privacy whilst ensuring data can be used for public good. It will create new statutory requirements for organisations to share the data they collect with trusted third-party entities, opening up opportunities for collaboration that benefits society.
2) Smart data will go mainstream, demonstrating impact and social good.
Smart data schemes will evolve, from siloed data services into interconnected, collaborative data services. By pooling diverse data sources, we can unlock new insights that drive meaningful change. For example, combining financial and health data could highlight links such as fuel poverty and ill health, or financial pressures and poor sleep, while analysing data in areas such as finance, insurance and energy and utilities could underscore the impact of bad weather on small business performance.
3) Real-time data will become ever more important to policy makers and service deliverers
With the Labour government’s focus on public service improvement and plan to create a National Data Library announced this week, the need for timely actionable data is more pressing than ever. Policy makers currently rely on survey-based or historical data to set their agenda and assess its potential. The impact of major disruptions such as the COVID-19 pandemic and the ongoing cost-of-living crisis on the global economy and on personal finances demonstrate the need for smart data that is near to real-time, reflecting the here and now.
Sources like de-identified financial data can also help to overcome reporting challenges, as it represents a much more reliable and factual picture of economic and financial conditions in today’s Britain. Policy makers can use this to deliver more effective, targeted policy to drive growth and public service improvement.
The ongoing collection of real-time data can also help researchers and economists identify and monitor emerging trends and patterns, develop an understanding of long-term changes, and assess policy effectiveness in a timely manner.
4) Synthetic data will have its day
As organisations respond to evolving AI regulations and privacy requirements, synthetic data is set to take centre stage.
Synthetic data mirrors real-world data patterns without exposing personal information, making it invaluable for machine learning, data science, and simulations. Its applications are vast: from helping banks test new fraud prevention systems to enabling businesses and researchers to develop innovative solutions that require lifelike datasets without compromising privacy.
By facilitating these capabilities, synthetic data will empower organisations to innovate responsibly and at scale. Tools like our synthetic data engine Aizle, provide a safe, privacy-preserving way to harness the power of data.
5) Data ethics and privacy will come under renewed scrutiny
Public awareness of smart data schemes – which involve the use of data generated through everyday digital interactions such as mobile apps, navigation systems, social media, and online shopping – is set to grow.
According to the Government, smart data schemes could help inject £10 billion into the UK economy over the next decade, driving growth and innovation. They also have the potential to transform public services, for example, reducing administrative burdens for staff in the NHS and police so they can focus on delivering vital frontline services.
Beyond public services, smart data could equip scientists and researchers to make more life enhancing discoveries.
However, the public need to continue consenting to the sharing of their deidentified data between the private and public sectors to drive this movement forward. Therefore, smart data organisations have a responsibility to demonstrate the tangible benefits of data-driven solutions, showcase their commitment to privacy and transparency, and build enduring public trust.
By unlocking these opportunities, smart data can drive economic progress, strengthen public services, and support innovation that improves lives across the UK.
