Insight drought in data deluge

The metaphor of "data as the new oil" gained traction in the 2010s, emphasizing that raw data, like crude oil, requires refinement to become valuable.

- SIDDHARTH PAI

The metaphor of "data as the new oil" gained traction in the 2010s, emphasizing that raw data, like crude oil, requires refinement to become valuable. Wired magazine once compared data to oil in the 18th century, suggesting that those who learn to extract and use it effectively will amass wealth. In India, the launch of Reliance Jio on September 5, 2016, symbolized this transition from physical oil to digital data.

But with the rise of more refined artificial intelligence (AI), it is becoming clearer that the "data is oil" analogy has its limits. First, while oil is a finite, geographically concentrated resource, data is abundant, widely distributed, and constantly generated. Unlike oil, which is depleted upon use, data can be used repeatedly without loss, shared without being exhausted, and even combined with other data to create new insights. This unique characteristic makes data a non-rivalrous and self-propagating resource. The more it is analyzed, the more it fuels further discoveries, creating a cycle of continuous value generation.