Is Surveillance Capitalism a Threat or an Opportunity for the Welfare State?

The term “surveillance capitalism” refers to a system that commodifies personal data through extensive surveillance. Surveillance capitalism poses a significant threat to the core principles of the welfare state: equality, privacy, and social solidarity. At the same time, it offers opportunities to improve public service delivery. Surveillance capitalism poses the following threats to the welfare state. Because surveillance capitalism thrives on collecting vast amounts of personal data, often without the explicit consent of individuals, it can undermine citizens’ willingness to engage with public institutions, which is the foundation of welfare states. The concentration of wealth and power in large tech corporations can undermine the redistributive goals of the welfare state. Algorithmic biases built into data-driven systems can disproportionately affect marginalized groups, leading to further exclusion from social security programs. The intrusion of surveillance-based business models into public services risks privatizing key social welfare functions, prioritizing profit over social good, and reducing access to essential services for the most vulnerable populations. At the same time, surveillance capitalism offers some new opportunities for the welfare state. Governments could use surveillance tools to provide more targeted social welfare services. For example, predictive analytics could help identify citizens most in need, allowing the state to proactively intervene and tailor services to individuals. Surveillance technologies could allow the welfare state to better understand social problems such as unemployment, health needs, and education gaps. Data-driven insights could inform policy decisions, helping the state allocate resources more efficiently and address inequality more strategically. Surveillance tools used by governments could improve the accountability of social welfare programs. The introduction of digital tools in welfare states could promote digital inclusion by expanding access to online services. To realize potential benefits while mitigating risks, strong regulation and oversight are needed. The research was supported by RSF (project No 24-18-00542).