AI vendors are relearning the oldest rule in the data business

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Long before anyone trained a model on customer data, the marketing data business worked out the terms for pooling it. Catalog dealers in the 1990s joined data cooperatives that combined their transaction histories so each member could find new buyers, and the arrangements held because the rules were blunt.

A retailer contributed data to obtain modeled prospects; no member received a competitor’s customer file; and a company that stopped contributing stopped receiving. Card fraud consortia operate on similar give-and-take terms. No one would call these systems elegant, but every participant understood the trade.

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