Core Insights - The technology for AI-powered age verification is gaining traction, particularly in response to regulations like Australia's social media ban for users under 16, effective from December 10 [1][11] - Yoti, a leading startup in this space, has reported significant growth, running approximately one million age checks daily and achieving £20 million ($26 million) in revenue for the year ending March, with a forecasted 50% increase in sales for the current financial year [4][11] Company Performance - Yoti has turned a profit this year, with a revenue of £20 million ($26 million) [4] - The company is experiencing rapid growth, forecasting a 50% increase in sales for the current financial year [4] - Yoti's technology is utilized by major clients including Meta, TikTok, Sony, and Pinterest [11] Industry Outlook - The Age Verification Providers Association (AVPA) projected that the sector could generate nearly $10 billion in annual revenue across OECD countries from 2031 to 2036 [5] - The industry is characterized by rapid technological advancements and regulatory changes, making future predictions challenging [5] Technology and Methodology - The age verification process involves users taking a selfie, with automated decisions made within a minute [2][11] - Yoti's algorithm has improved over time, becoming adept at estimating age based on facial patterns [3][11] - The technology is designed to detect false accessories or makeup that could misrepresent a user's age [9][11] Privacy and Ethical Concerns - There are concerns regarding data privacy and potential biases in age verification algorithms, particularly with non-white faces [5][8] - Experts suggest that the current ecosystem may shift towards better privacy protections in the future [6] - Yoti claims to remove all data immediately after analysis, addressing some privacy concerns [9]