The Independent was not involved in the creation of this sponsored content.Proxy servers are often associated with cybersecurity and online privacy discussions: mainstream publications tend to cover them under cybercrime rather than business. There are, of course, good reasons for that. However, proxy servers are also used for a range of commercial, research and technology-related purposes. In fact, they support a variety of online services and technologies, including some AI applications. Few are aware of the role proxy servers play in the web’s economy. This article draws upon Proxyway’s market report — an annual examination of the scale and scope of commercial proxy server providers, run since 2019. What are proxy servers?The term proxy servers refers to other computers that lend you their internet connection to access the web. Why bother? This way, you can get a new IP address linking you to a different geolocation and internet service provider. In this sense, proxy servers are very much like virtual private networks. But they’re not quite the same: rather than connecting to just one server as you would with a VPN, you often operate many proxies at once. Doing so can help organisations collect publicly available web data at scale, depending on the policies of the sites involved. Business-use casesHowever, this represents only one aspect of the proxy market. There is also a sizeable commercial ecosystem built around legitimate business uses that supplies leading companies worldwide and strives to self-regulate. Some larger proxy server providers report substantial annual revenue by offering businesses tools for large-scale web access and data collection.What are their proxies used for? Proxyway’s report interviewed 13 major providers and found that the largest-use cases were related to e-commerce. Companies collect the product and pricing details of their competitors, build price comparison websites, gauge sentiment from customer feedback, and more. An adjacent industry scans the web for counterfeit merchandise, and there are businesses whose responsibility involves ensuring that ads end up where they should. Proxy servers also stand behind online travel agencies, which automatically select the best flight rates, as well as hotel booking platforms. Marketers use them to monitor where their websites appear in search engines, while cybersecurity analysts scan the internet for malicious apps. Academics rely on proxies to build and analyse large datasets, for example, to understand how the media portrays women in the workplace. Proxies as the engine for AILately, proxy servers have found themselves within the AI sector. They serve a similar role as fuel to a motorcar — which is to say, they are pretty important. To be more specific, proxies can also help power the infrastructure that supplies large language models with training data — AI systems often require ongoing access to data and periodic retraining. The emerging use case of agentic artificial intelligence can also use proxy servers to successfully complete tasks on people’s behalf. For some providers, AI-related customers already form the core of their user base. One major market participant has reported significant year-over-year growth tied in part to artificial intelligence demand, with annualised recurring revenue rising substantially and continued growth projected, according to the report.Key considerationsIn the end, proxy servers are just tools. They can be used for a wide range of purposes, from cybersecurity investigations and online research, to supporting commercial operations.Reputable providers try their best to keep their networks in check. They source residential proxies — those provided by people’s devices — by asking for permission and compensating the volunteers. They screen customers, sometimes to the point of requiring a personal ID and video call. They ban risky websites and use cases, such as accessing government or financial institutions. They proactively monitor their networks for abuse. A number of providers have organised into a consortium called the Ethical Web Data Collection Initiative, which aims to foster public trust and shape sustainable policies. Is this enough? It may not be if you stand staunchly against the training methods of AI or the general notion that public web data should be freely available to all, robots included. But overall, proxy servers may help power many of the services you benefit from every day, even if you never notice them.For more information, visit Proxyway