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The proposals are shocking in how broad and how naive they are, but the submission title is clickbait. The WEF is not proposing a "trust digital agency", it's proposing that "trusted digital agents" could be created, and they would have agency in the digital realm.[0]

Basically they want people to give power of attorney over to an AI programmed by some large corporation so that your digital life can be bought and sold, and your access to commerce and government services (and human rights, like freedom of speech and assembly) can be limited at the click of a button, or on the whim of an algorithm, with no humans in the loop to stand in the way of government-corporate diktats.

[0] "In order to be truly at the service of the individual, a trusted digital agent (TDA) that automates permissions for people and effectively manages their data across different services needs to respect a certain number of rules."

Ahhh you are correct, thanks for pointing that out. I'll update the title. They do refer specifically to "trusted digital agency" but, as you pointed out, it's "agency" as in "ability to choose" not "agency" as in "an organization."

And yes it is quite scary to me as well.