So, what are the downsides of crowdsourcing? One of the pitfalls that catch businesses by surprise is privacy concerns. Netflix crowdsourced the improvement of its movie recommendation algorithm. The algorithm is critical to its business effectively helping users find new movies-something crucial in order to retain its users. The contest: improve the existing ranking algorithm by 10 percent and win $1 million.
The contest attracted scientists from around the world. The Netflix data was so rich and deep that it promised to yield broader insights about data analysis. Eventually, the scientists formed teams which collaborated to win the prize. Unfortunately, Netflix's attempt to run the contest again was cancelled due to a lawsuit that challenged the release of user preference data. So, crowdsourcing does not always fit the data, and there may be special concerns around private information.
Another issue that comes up is unexpected bias. GalaxyZoo is a Website where amateur astronomers can label pictures of galaxies taken by telescopes. They created the largest database of galaxies ever assembled. The project led to many academic papers and discoveries. However, one finding was perplexing: there were more clockwise spiral galaxies than counterclockwise spiral galaxies. Astronomers wondered if there some galactic Coriolis effect that makes galaxies spiral clockwise. After running a mirrored set of the same images, researchers found that users had a subtle bias towards labeling ambiguous spirals galaxies as clockwise.