The vast amount of data associated with individuals is growing exponentially every day, consisting of both accurate and inaccurate information. Even credit reports, which are crucial for obtaining loans or credit cards, can contain erroneous information that negatively affects a person's credit. This is particularly concerning since credit bureaus hold vast amounts of personal data. The implications of inaccurate data increase significantly as the amount of data grows. It is critical to ensure that the data being used for identity verification is accurate and reliable to prevent potential harm.

With the advent of social media and new sources of personal data, verifying a person's identity has become even more complex and nuanced. Social media data, which didn't exist before 2005, is now a treasure trove of information on individuals, as people willingly share their most personal experiences for everyone to see. This abundance of accurate and inaccurate data that each individual has attached to themselves is growing exponentially daily, making it more challenging to distinguish between authentic and fraudulent identities.

Digital transformation has been a buzzword for years, but the Covid-19 pandemic accelerated the need for companies to digitize their operations. Companies that were not digitally enabled found themselves struggling to stay afloat and quickly realized they needed to adapt to avoid being left behind. However, digital transformation is not just about moving operations online - it also means finding new ways to verify the identity of customers remotely. In the past, companies would rely on physical ID documents and in-person verification, but in a digital world, this is no longer feasible. AI-powered ID verification solutions provide a much-needed solution to this problem, allowing businesses to quickly and accurately verify the identities of their customers and partners, even when they can't meet in person.

Over the years, the evolution of ID documents has been remarkable. For instance, the original driver's license issued in the US did not have a photo. However, as identity fraud became more prevalent, state governments began to add photos to driver's licenses as a way to verify identity. Recently, the Real ID Act was passed in the US, which requires a stricter set of standards for state-issued IDs, including more secure features and identity verification processes. Outside the US, many countries have national ID cards that are used as a primary form of identification. For example, India's Aadhaar card is a biometric-based national ID system that has been in use since 2009, and it currently covers over 99% of the country's adult population. Similarly, Brazil has introduced a Mobile ID program that allows citizens to use their mobile phones as a form of identification, which is particularly useful for those who don't have traditional forms of ID. As ID documents have evolved, so too have the challenges associated with verifying them. With the increasing prevalence of digital IDs, biometric data, and new sources of personal data, the process of identity verification has become more complex and nuanced. 

As technology continues to advance, so does the sophistication of fraudsters and their methods. From deep fakes to synthetic identities, the landscape of fraud is becoming increasingly complex and difficult to detect. With the potential impact of generative AI, which has the ability to create highly realistic and convincing fake identities, the need for advanced and sophisticated ID verification measures has never been greater. As the threats become more sophisticated, so must our defense against them. A human review alone cannot accurately and timely keep up with these changes, making AI-powered identity verification critical for preventing fraud and protecting individuals' personal information.

McKinsey Global Institute's report "Digital identification: A key to inclusive growth" emphasizes the significance of digital identification as a catalyst for economic empowerment and inclusive growth. Analyzing nearly 100 ways in which digital ID can be used in seven countries including Brazil, China, Ethiopia, India, Nigeria, the United Kingdom, and the United States, the report demonstrates how well-designed digital identification can facilitate access to critical services such as banking, education, and government benefits, and how full digital ID coverage could unlock economic value equivalent to 3 to 13 percent of GDP in 2030.