In the rapidly evolving landscape of smart technologies, a groundbreaking study published in the *Internet Policy Review* (translated from German as “Internet Policy Review”) is shedding light on the intricate dynamics of “phygital” spaces—environments where physical and digital realities converge. Led by Tehilla Shwartz Altshuler of the Israel Democracy Institute, the research delves into the transformative potential and ethical challenges posed by smart glasses and AI-powered technologies, offering a fresh perspective on governance and human rights in these emerging spaces.
The study introduces the concept of the “ethics of interactions,” a framework that goes beyond traditional regulatory approaches like Privacy by Design and Human Rights by Design. These frameworks, while valuable, often focus narrowly on data protection and overlook the relational and collective dynamics disrupted by new technologies. By situating regulation within the lived realities of AI-mediated environments, the research aims to bridge the gap between abstract principles and practical dilemmas.
“The ethics of interactions is about understanding how these technologies reshape trust, consent, and perception in ways that conventional legal analysis might miss,” explains Shwartz Altshuler. “Our methodology combined speculative storytelling, legal mapping, field diaries, and role-play workshops to uncover vulnerabilities and opportunities in these phygital spaces.”
The interdisciplinary team, comprising experts in law, speculative design, and human-computer interaction, conducted a year-long study in Germany and Israel. Through role-play workshops and speculative storytelling, they identified five recurring modes of interaction: person-to-person, person-to-space, person-to-reality, person-to-machine, and person-to-platform. These interactions revealed a range of vulnerabilities, from peer-to-peer surveillance and emotional inference to corporate, platform, and government control of augmented realities.
One of the most compelling findings was the potential for smart glasses to reshape trust and consent in public and private spaces. “Imagine walking into a store where your smart glasses not only recognize products but also infer your emotional state, influencing the way you interact with the environment,” says Shwartz Altshuler. “This raises critical questions about autonomy, privacy, and the ethical use of AI.”
The research also highlights the need for dual governance models that combine regulatory safeguards with interaction-sensitive design. “We need to invest in digital literacy for policymakers and the public to navigate these complex environments effectively,” Shwartz Altshuler emphasizes. “This includes understanding the implications of AI-mediated interactions and developing frameworks that prioritize human rights and ethical considerations.”
For the energy sector, the implications are significant. As smart technologies become more integrated into infrastructure and operations, the ethical and regulatory challenges identified in this study become increasingly relevant. From smart grids to energy-efficient buildings, the convergence of physical and digital spaces requires a nuanced approach to governance that balances innovation with ethical considerations.
The study’s findings offer a roadmap for future developments in AI governance, emphasizing the importance of speculative inquiry in policy design. By embedding speculative design into regulatory frameworks, policymakers can better anticipate and address the lived dilemmas posed by emerging technologies.
As the energy sector continues to evolve, the insights from this research will be invaluable in shaping policies that promote innovation while safeguarding human rights and ethical principles. The study’s interdisciplinary approach and practical recommendations provide a compelling blueprint for governing phygital spaces in a way that benefits both industry and society.