Microsoft AI Spying Scandal: Time to Rethink Privacy Standards

Microsoft recently caught state-backed hackers using its generative AI tools to help with their attacks. In the security community, the immediate questions weren’t about how hackers were using the tools (that was utterly predictable), but about how Microsoft figured it out. The natural conclusion was that Microsoft was spying on its AI users, looking for harmful hackers at work.

Some pushed back at characterizing Microsoft’s actions as “spying.” Of course cloud service providers monitor what users are doing. And because we expect Microsoft to be doing something like this, it’s not fair to call it spying.

We see this argument as an example of our shifting collective expectations of privacy. To understand what’s happening, we can learn from an unlikely source: fish.

In the mid-20th century, scientists began noticing that the number of fish in the ocean—so vast as to underlie the phrase “there are plenty of fish in the sea”—had started declining rapidly due to overfishing. They had already seen a similar decline in whale populations, when the post-WWII whaling industry nearly drove many species extinct. In whaling and later in commercial fishing, new technology made it easier to find and catch marine creatures in ever greater numbers. Ecologists, specifically those working in fisheries management, began studying how and when certain fish populations had gone into serious decline.

One scientist, Daniel Pauly, realized that researchers studying fish populations were making a major error when trying to determine acceptable catch size. It wasn’t that scientists didn’t recognize the declining fish populations. It was just that they didn’t realize how significant the decline was. Pauly noted that each generation of scientists had a different baseline to which they compared the current statistics, and that each generation’s baseline was lower than the previous one.

What seems normal to us in the security community is whatever was commonplace at the beginning of our careers.

Pauly called this “shifting baseline syndrome” in a 1995 paper. The baseline most scientists used was the one that was normal when they began their research careers. By that measure, each subsequent decline wasn’t significant, but the cumulative decline was devastating. Each generation of researchers came of age in a new ecological and technological environment, inadvertently masking an exponential decline.

Pauly’s insights came too late to help those managing some fisheries. The ocean suffered catastrophes such as the complete collapse of the Northwest Atlantic cod population in the 1990s.

Internet surveillance, and the resultant loss of privacy, is following the same trajectory. Just as certain fish populations in the world’s oceans have fallen 80 percent, from previously having fallen 80 percent, from previously having fallen 80 percent (ad infinitum), our expectations of privacy have similarly fallen precipitously. The pervasive nature of modern…