Magazine menu Close Magazine menu

Digital transformation

Latest stories

tale two metaverses

The Metaverse’s history shows we’re not quite ready for it

  • min read
    • In October 2021, Facebook Founder and CEO Mark Zuckerberg changed his company's brand name to Meta to reflect what he sees as the importance of the metaverse to their business strategy. Experienced using a virtual reality (VR) headset, the three-dimensional virtual environment lets characters (called avatars) engage in social and commercial activities much like real life. Many global business giants see the Metaverse as a huge commercial opportunity that will change how we live and work. Should your business get involved? I believe the Metaverse's history shows while it's an environment you should get familiar with, it may not be the time to invest big. Here's why. Origins of the Metaverse The video games industry has long driven demand for engaging immersive experiences and technologies to deliver them. Content expert Amica Graber says the word 'Metaverse' first appears in Neal Stephenson's 1992 science fiction novel Snow Crash. Snow Crash's imaginary Metaverse is a massively multiplayer online game (MMOG) – a game where all players are logged into the same game space, competing or collaborating on missions. MMOGs have been around since the 1990s. Their popularity has risen fast worldwide with improved internet connectivity, computer power and immersive graphics. One such game, space simulator EVE Online, has seen over 60,000 players simultaneously playing. And like in the Metaverse, trading virtual items for real-world money in MMOGs has become big business. What's the Metaverse's attraction? The Metaverse has business potential because of our willingness to invest so much time and money in playing games online. In a 2022 virtual conference on the Metaverse, Datin Lorela Chia, CEO of Haus of Stylo, Malaysia, gave examples of the fashion and games industry collaborating, like creating and selling virtual garments for avatars. But it's not just about buying and selling things – the Metaverse offers a way to meet, discuss or learn that's more immersive than other online communication tools. Bill Gates said in 2021, "Within two to three years, I predict most virtual meetings will move from 2D camera image grids… to the Metaverse – a 3D space with digital avatars." Metaverse follows in Second Life's footsteps In almost every way except the VR headsets, there was a Metaverse from 2003, when Linden Labs launched virtual world Second Life. Second Life is a virtual world that lets users create avatars and settings, and teleport from one place to another in seconds. Second Life has an estimated 800,000 users and many of the characteristics of a real-world civilization – rules, citizen rights, homes, shops, universities and events. It has many business applications like hybrid conferences, virtual project meetings and data visualization for education and collaboration. IBM has used Second Life for internal meetings. BP for graduate recruitment and Imperial College London for virtual hospital tours. But with all its functionality and experience, Second Life hasn't gained mainstream commercial success. So why does Mark Zuckerberg believe his Metaverse has massive disruptive potential? What's enabling today's Metaverse? The answer lies in how the internet evolved since its birth in 1983. The power of 5G and fibre, smartphones and social media have all played a role. Today's advanced internet technologies make the Metaverse possible, but the devices and applications we use daily will determine whether it has significant commercial potential. Second Life runs on a desktop computer and connects to a network of Linden Lab servers. It's a security risk for businesses with network firewalls. Second Life is also 'synchronous:' users only get value from being online at the same time as other users. So there are no users in most Second Life locations most of the time. To use a real-world retail analogy, there's a lack of footfall. This is also true for the Metaverse. Its commercial potential will depend on user numbers and where they spend time. It's critical there's on-demand universal access across computers, laptops and mobile devices. Perhaps 'Web 3.0' will be the technology that delivers on making Metaverse experiences securely accessible to a global marketplace across different devices, but especially mobile devices like smartphones. What is Web 3.0 and why does it matter? IT industry analyst Robin Bloor recently said, "Web 3.0 is the third generation of the internet — a global network that permits intelligent interactions between all its users and devices." Web 3.0 is a theoretical new blockchain-based iteration of the web. It could provide increased data security, scalability and privacy for users. It would let users publish rich media content to a global audience and make a Metaverse more commercially viable than Second Life. By making the web more powerful, intuitive and secure, Web 3.0 could mean the volume of online users accessing and creating content grows faster. One major difference, most relevant to the Metaverse, is better handling of the 3D graphics needed for virtual worlds. Blockchain important to Metaverse commerce Metaverse settings are computer-generated environments or 360-degree photos and videos captured by consumer or professional cameras. These digital images and videos are now traded on the internet. Blockchain can validate ownership of these digital assets, enabling the fashion industry to sell digital garments. In Second Life from 2005, you could create digital assets and trade them for the digital currency Linden dollars. Today, the same thing is happening in the Metaverse using blockchain and cryptocurrencies like Bitcoin. These latest developments, alongside artificial intelligence that connects buyers with sellers, will add to the growth of the Metaverse. How will the Metaverse affect business? The future shape and commercial potential of the Metaverse go beyond numbers of users. It also depends on how often they visit, for how long, where and why. With pandemics and climate change restricting face-to-face contact and travel, applications that enable remote communication and collaboration have grown fast. Online meeting app Zoom saw daily meeting participants grow from 10 million to 300 million between 2019 and 2020, mostly from small business and personal use. Will the Metaverse become the new virtual meeting space Bill Gates predicted? It seems unlikely for now, with the convenience and ease of use of Zoom and other online meeting platforms. More likely, the commercial potential of the Metaverse will be unlocked by applications that benefit more from immersive experiences. It could also be useful in mental and physical health therapies that use virtual reality and for complex 3D data visualization. Facebook (Meta) has invested hugely in strategy based on VR headsets as the gateway to their Metaverse platform. Unlike the browsers found on every smartphone and laptop, few own or have access to a VR headset. At the moment, Metaverse suffers from the same problem that restricted Second Life – a limited marketplace, until the technology evolves to the point where VR headsets or glasses are affordable and ubiquitous. Unlike recent disruptions like cryptocurrency, the Metaverse relies on mass adoption to be profitable for business. Several factors in the market today make mass Metaverse adoption unlikely, like low VR headset ownership and lack of systems to access the Metaverse with commonly owned devices. While businesses should closely follow the Metaverse's development, it may be premature to invest heavily at this time. In any case, watch this space.
trust global business

New research on how to build trusted business relationships worldwide

  • min read
    • Trust is the building block of all relationships, but the way we build trust in business isn't the same the world over. Tyree Mitchell is assistant professor at Louisiana State University School of Leadership and Human Resource Development. His latest book with Jeanne Brett, Searching for Trust in the Global Economy, shares findings from studying managers in 33 countries, revealing differences in how they nurture trust relationships. It also asks if the pandemic has changed how we make decisions about trust. I spoke with Tyree about his research and ideas to improve relationships in virtual and global tech teams. Susi O'Neill: Why did you focus on international differences in trust for your research? Tyree Mitchell: Global economic development needs new business relationships. Negotiating them is tricky – there's much uncertainty, vulnerability and unmet expectations. Trust is critical. When negotiators trust each other, businesses use fewer resources to prevent exploitation and have better economic outcomes. Most research and theories on trust are from a Western perspective. Data from the World Values Survey shows different responses. For example, the US is higher on trust than Brazil. To build relationships, you must understand how trust varies between cultures. We wanted to explore what that means when negotiating business relationships and understand from managers and executives how trust happens. How do we decide if we'll trust a business partner? We learned from the 82 managers we interviewed four key actions they use to make trust decisions. First, due diligence – searching for information about the new partner, including financial status, ratings and reviews and data gathering on social platforms like LinkedIn. Second, brokering – a special introduction where a third party puts their reputation on the line. We particularly see this in East Asia. Third, goodwill building – interacting socially to get to know the partner, like grabbing a coffee or going to a sports event together. Finally, testing – getting the partner to act or react, like asking a question when you already know the answer. We want to know if they will be upfront about company difficulties or cover up problems. In the West, we use testing to check if you're forthcoming and honest, as the assumption is you can be trusted. In East Asia, testing is about checking competency, as people tend to embellish things, so partners want to know if you can deliver what you promise. From these actions, we found four standards for determining if someone is trustworthy -- competence, openness, respect and rapport (CORR.) Competence means, are they capable with the knowledge and skills to deliver on their promise? Openness means are you honest and forthcoming? Respect means showing regard for one another, even if you don't have shared values. Rapport refers to building affinity around shared values. What were the main differences you saw between research participants? We analyzed the 82 manager interviews using a framework based on regional differences in trust and the tightness of social norms. There is a cultural difference in how people answer the question, can most people be trusted? For example, in India, the answer is more often 'no' and in Sweden, more often 'yes,' so we call India' low-trust' and Sweden' high-trust.' There are also differences in tightness and looseness of social norms and consequences for deviating. For example, China is high-trust and tight, the US is high-trust and loose, India is low-trust and tight, and Mexico is low-trust and loose. To understand cultural differences in trust decisions, you must understand these differences. There are also differences in how different cultures decide to trust. East Asians emphasize testing more than Middle Easterners or Latin Americans. Latin Americans and Middle Easterners emphasize goodwill building more than East Asians. Latin America, the Middle East and South Asia are lower trust. But in Latin America, rapport and establishing shared values are more important. Respect for cultural differences is vital in the Middle East and South Asia. This may be because the institutions that monitor and sanction deviance from norms in 'tight,' but more diverse cultures don't cross ethnic boundaries. What were the most surprising research findings? East Asia and the West focus primarily on the business relationship. If there's a business relationship, the personal connection follows. China and UK's behavior was similar, but social norms are different. On brokering a relationship through a third party, one US manager asked, "What's in it for the person making the introduction?" That's not considered in the 'tight' East Asian culture – if the third party puts their reputation on the line, they're good to deal with. In this culture, someone can be outcast if they bring embarrassment on themselves or their family – the stakes are higher. How can transparency be improved between partners? Share information openly and honestly. Anticipate being asked questions about past performance and how you see the future relationship. Your potential partner may interpret reluctance to share as hiding, so when you can't share information, explain why. Signal you're engaged and want to learn more by asking questions. Trust is a two-way street. Are there differences in how people build rapport and trust in person versus online? During the pandemic (in the fall of 2020), we went back to the same managers we spoke to before to ask how they developed new relationships and made trust decisions virtually. A manager from Brazil said they found ways of keeping the spirit of face-to-face using technology, as talking to someone online is the same way to make a connection. Could virtual reality (VR) and the virtual office help bridge the geographic divide? Engineers and scientists I've interviewed for other research reacted negatively to the idea that VR could replace or substitute for face time. Personally, I'm comfortable using video conferencing, but I've found using a video game character awkward. I like the possibilities, but our ability as humans to get up to speed and be open to it can be a challenge. The reluctance to use virtual technology could be partly generational. When we re-interviewed managers during the pandemic, one manager from Palestine mentioned that his father initially felt the business could survive without using technology. However, when it was time to make a serious business decision, his father would ask: "Can you send an email or do something?" What advice can you share for managers of international tech teams? Other research shows challenges in inter-cultural teams include violations of respect or hierarchy, prejudice and lack of common ground. Communication styles vary – in East Asia, it's more indirect, but in Latin America and the Middle East, it's more direct. Don't leave anything to chance. While putting together this charter, your conversations will help define how you'll deliver. If someone doesn't show up to a meeting, what happens next? A shared team mental model about what to expect reduces uncertainty. Nothing is perfect, but the charter negates some pitfalls by getting collective agreement.

Could this voluntary charter fix data ethics in big tech?

  • min read
    • We know some people and businesses will, given the chance, use personal location data in unethical ways. When automotive cybersecurity experts Karamba Security posted a fake vehicle control unit online, they saw 25,000 attempted breaches in three days. Stalkers have used AirTag, Apple's coin-sized device for finding lost keys or other property, to track victims. Regulations like the EU's General Data Protection Regulation (GDPR) define minimum standards of data ethics, but the case for going further is strong. To that end, what can help those tech businesses who want to stay ahead of the data exploitation curve by upholding the highest data ethics standards? Learning to foresee the unforeseen International non-profit the Locus Charter promotes a higher standard of responsibility for professionals and businesses when it comes to location data. They want to avoid unforeseen privacy breaches by working out what can go wrong and pinpoint big problems before they're exploited. They champion public interest by showing businesses how to prevent unintentional harm. The charter is based on ten principles that balance moral behavior with economic benefit, like realizing opportunities and understanding impacts. Location data is one of many frontiers. As veterans of data policy in and out of government, the charter's founders want to be part of all kinds of data discussions. Automation challenging data ethics "The most important focus in data ethics is exploring the power granted by the accumulation of data so everyone can recognize how that power can be used and misused," Ben Hawes, Technology Policy Consultant and co-author of the Locus Charter, told me. He continues, "There's an assumption automated systems and digital technologies are always better. Economic pressures mean companies prefer the promise of greater productivity at all costs, which can be alarming when people are unaware of many potential data misuses, accidental or deliberate." "Some risks in business going digital crop up in all sectors," said Hawes. "We often see 'designer biases,' where developers center their own experiences, leading to alienating people who don't fit the same racial, economic or physical profile. Another issue is automation making back-end processes more complex until they're opaque. There are also sector-specific issues." With the digital world's size and potential, regulating the space is an uphill battle. New ways to exploit data are appearing faster than lawmakers can address them. Is self-regulation enough? Hawes doesn't support a relaxed approach to data ethics. "It's unwise to avoid oversight and critical regulation in the hope self-regulation may be enough, as it rarely is." A 'wild west' model is attractive for short-term gains by freeing emerging markets from red tape, but loose protections don't create conditions for long-term growth or stable markets, especially in an age of social pressure on brands to be ethical. Can whitewashing be cleaned up? With limited regulative authority, a non-profit trade initiative likely isn't eager to bicker with companies they're working with. Organizations like Locus may be better placed, approaching economic ethics from a collaborative angle. Of course, some companies are only interested in the PR boost of appearing ethical by whitewashing their marketing because they don't want to be the only ones following the rules in a competitive arena. They end up paying lip service alone, without taking the issues seriously. Hawes thinks despite this, there's still benefit in working in good faith. "To get ethically reluctant companies to behave well with data, is it better to give them the benefit of the doubt or be critical and accusing? I think, better to have a company aspire to a good standard, even if it's empty promises, because they can at least be held to those standards in some way." Less direct ways of influencing A cooperative strategy may create the best conditions in a self-regulating atmosphere. When ethics groups collaborate with business, they influence thousands of staff members, creating internal pressure for higher standards in the boardroom. It's also worth championing an ethical company for consumers looking to do the right thing with their money. Though strategies like these can't do it all, they have worked, motivating large companies to produce net-carbon zero plans and banks to create green investment options. But data misuse is not the same as pollution. "It's harder to see and analyze compared with other high-profile scandals, so it's hard to translate into a common grievance that can unite people," says Hawes. Will something have to go badly wrong for the world to take it seriously? Hawes considers, "If authorities avoid developing solutions until a problem causes substantial harm, they'll still need about a decade to develop tools that would be effective in this complex market. Governments should be working on this yesterday." In other words, have a fire extinguisher ready when playing with matches, rather than trying to invent one as your house burns down. Reforming data use culture The task of reforming fast-evolving data industries is daunting. Hawes' recommended method involves slowly, steadily establishing ethical practice as the norm. "The UK has the Digital Regulation Cooperation Forum for sharing information and approaches. It lets regulators gain knowledge of the risks data and digitalized business generate, so they can manage them sector by sector. We need a forum like that on an international scale," says Hawes. "Understanding risks like explainability, transparency and bias creates a foundation for building standards that address the problem and brings stability to the data economy." This pressure can also come from outside industry, and often flavors the expectations that filter into business. "More public debate on how we can avoid driving digital inequalities would go a long way," says Hawes. "This is particularly important in social media, which is the frontline of data ethics in many ways." While data privacy issues haven't seen the emphasis Hawes and his peers would like, they're eager to change the culture. Business can choose to be part of the solution and be heralded as ethical data use champions for their efforts.
API economy

How to get ahead in the API Economy

  • min read
    • Organizations worldwide are racing to digitalize everything they do. At the heart of this change is the Application Programming Interface, or API. APIs let software talk to other software, so businesses can offer never-before-seen services efficiently and cost-effectively. APIs are so important we're seeing the rise of what some call the API Economy: Organizations putting out their digital services and assets in a controlled way. So what does the API Economy mean for businesses committed to staying ahead when it comes to digital transformation? An economy born of good business thinking Simple questions businesses should ask are driving the API Economy: How do we make things easier and better for our customers? How can we get the most out of our data? How can we use other organizations' data so that we both gain? Bhavesh Thakor, marketing platform Selling Simplified's Vice President for Strategic Partnerships in India, says, "In a digital economy, 'API first' is a crucial driver for every business. While we need API integration to run our business smoothly, it's also our clients driving it. For most new-economy companies, it's become necessary for us to operate and compete." In India, banks have been quick to use APIs to add a new layer of customer experience. APIs make this possible through communication contracts among subsystems, meaning no need for human intervention. India's banking and financial services sector has been able to hyper-automate by taking the right risks and investments with API investments and partnerships in just a few years. In food and hospitality, restaurants and large delivery partners like Zomato and Swiggy work together thanks to APIs. Zomato's success when it launched on the stock exchange, netting capital of around 60 billion US dollars despite being a loss-making business, may indicate the stock market understands the value of the API business model. Raman Kalia, Chief Information Officer at India-based systems integration company Tecrivulet, says, "With a robust API, businesses can go from concept to market much faster. They can focus on what they do best." Examples of the API Economy he gives include India's United Payments Interface (UPI), which disrupted big payment brands like VISA and Mastercard, and the government's identity system, Aadhaar. Kalia thinks Aadhar and UPI are some of the Indian government's biggest API success stories. Aadhaar allows citizens to authenticate their identity. While not a citizenship card, it's now Indian citizens' first entry point to use any e-service. UPI lets banks integrate with aggregators, retailers and merchant establishments and process payments in real-time. UPI is helping bridge the digital divide in India because such a wide range of people have been able to see the system's value. Some say India is heading towards a truly cashless economy. Decide your API strategy How much API integration your organization needs is up to you. It depends on what's happening in your industry. To see what a successful API strategy can look like, consider Ola. In 2015, one of India's biggest taxi aggregators, Ola, opened its API model to third parties when it was still finding a foothold in the market. The idea was novel but strategic – Ola wanted to partner with a travel company, a virtual assistant and a mobile app builder to increase its customer base. Ola hired about 1000 developers to further its ambition and assured stakeholders its API was secure. Ola soon diversified into Ola Foods and now claims to be one of India's fastest-growing platforms. They hope to survive competition despite being a late entrant to the food and delivery market by using API-driven partner models, drones and cloud kitchens. The API fine print: Compliance and security While API integrations have taken off like never before, the fact remains – APIs constantly expose data, services and transactions to third parties worldwide, creating complexity at scale. An API hack can have a dangerous cascading effect across internal and external systems, causing irreparable damage to organizational reputation. Cyber risk management and compliance should be at the core of your API strategy. Build in security and compliance from the start. A good place to start with compliance is Rakuten RapidAPI's exploration of what different data protection regulation around the world means for APIs. You must clearly define your API's scope of control: Who can access it, what they can do with it and how they can do it. API practitioners should adopt criteria-based evaluation and run a proof of concept (POC.) The API Economy is here to stay, and customers are thankful for its many benefits, from instant banking to easy food delivery apps. All businesses need to consider how they can use APIs to make the most of their data and make their customers' lives easier. With attention to security and compliance right from the start, your API strategy can catapult your business into the future.
Democratizing artificial intelligence

How we can make sure AI benefits everyone

  • min read
    • We're at a tipping point in history, but the potential in our situation is also palpable. Smart technology has been disruptive. Artificial intelligence (AI) is growing exponentially, creating radical change in how we live, work and play. Every country and industry feels its reverberations. Whole systems of production, management and governance are changing while we face huge challenges like climate change and a global pandemic. Add ongoing issues like fake news, wealth inequality and bias to the mix. We need visionary leadership and action to ensure humanity goes in the right direction as we unlock AI's potential. If we navigate this era wisely, AI will be good for society. Max Tegmark, President of Future of Life Institute, says, "Everything we love about civilization is a product of intelligence, so amplifying our human intelligence with artificial intelligence could help civilization flourish like never before – as long as we keep the technology beneficial." AI is a purpose for humanity My recent book Democratizing Artificial Intelligence to Benefit Everyone examines the smart technology era, how AI affects every part of our world and how it could benefit everyone. I also introduce Sapiens – a human-centered AI-driven platform that puts us in control as individuals. It could monetize the data and services of individuals, companies and even countries. Sapiens addresses a big gap: There is no large-scale solution helping us make the most of our lives. The Sapiens AI Assistant helps you optimize your life, get money for data and services and learns from your behavior. It supports lifelong learning, relationships and wellbeing. It gives guidance, makes recommendations and even helps you build character strengths. Why do we need this? Imagine living in a thriving, uplifting and compassionate society that creates beneficial outcomes for everyone. Smart technology helps this society solve problems and create opportunities. Cities are greener, work is low stress and living more meaningful. Jobs are well-paid, your community is rich in activities and you can easily learn throughout your life. You can focus on quality of life and work with others to further improve society, rewarded for your active participation and positive contributions. I'm developing Sapiens with that future in mind. How business leaders should respond to AI AI is progressively disrupting and changing most sectors and business models. It's activating new markets and future industries. Global management consultancy McKinsey estimates AI will add 13 trillion US dollars to the global economy over the next decade. In my experience developing AI software over two decades, business is getting better at gathering and responding to data, transforming customer retention, productivity and quality. Increased computing power, data storage and processing capability have all helped. Markets are evolving. We see faster, scalable marketplaces, more informed consumers and leaner operations. Advances in AI are birthing new industries and customer segments. Senior executives must make fast, strategic shifts to monetize new opportunities and adapt models as AI adoption spawns new industries. Early examples of new AI-driven market segments include recommendation-driven entertainment streaming and GPS-driven ride-sharing. We've seen tremendous increase in start-ups using AI, with investment growing 18-fold in six years. AI applications today mainly optimize business processes in existing industries like customer support, logistics and supply chain management. But the biggest economic benefits of AI will be in solving complex problems that could start new industries. Business leaders must keep track of machine learning developments to spot trends and react. AI in cybersecurity Cyberattacks can target all businesses, with aims ranging from customer data theft to corporate espionage. IT security economics research by Kaspersky saw the average cost in 2020 of resolving a data breach for an enterprise exceeds $1 million, and more than $100k for small- to medium-sized businesses. Large data breaches can leak the data of millions of people, opening the door for further cybercrime and fraud. AI will play an increasingly important role in protecting businesses from cyberthreats, with security tools analyzing data from millions of threats and using it to identify threats like ransomware and phishing as they become more sophisticated. Staying up to date with AI-based cybersecurity tools and using them to assist security teams helps keep businesses safe from increasingly potent cyberattacks. AI-driven cybersecurity learns how humans react, helping a business become better prepared to face future threats. Personalized engagement for consumer-facing businesses Consumer-facing businesses must offer personalized customer experiences at scale. Tech giants like Amazon, Google and Alibaba have led the way. Machine learning can accurately predict customer needs by building rich, real-time profiles as we interact with websites and virtual assistants. Accenture says investment in AI and human-machine collaboration could boost retail revenue by 38 percent. As we flick through Netflix recommendations or search on Google, AI calculations happen in data centers, with our devices communicating their results to us. This will change as machine-learning algorithms become more efficient and capable of running on low-power devices at the 'edge' (known as edge computing.) Future AI applications in money and finance AI has already had an enormous impact on the financial services sector. Mordor Intelligence estimated AI in fintech was worth nearly 8 billion US dollars in 2020, predicting its value will triple by 2026. AI-automated processes are reducing costs, increasing productivity and preventing fraud. AI could offer personalized engagement for the growing number switching to mobile, in-app transactions. It would provide another possible route for cyberattack and financial fraud, but AI can help address these risks too. Intelligent virtual assistants for banking, powered by messaging platforms, mobile devices or voice assistants, could give convenient, easy customer service for everything from account balances to loan inquiries. My company, South African AI business Cortex Logic, envisages major banks using AI-driven models to optimize home loan prices in a dynamic and personalized way. In this industry, slight increases in market share are of high value. US residents take out 4.4 trillion US dollars in home mortgages each year. By mining structured and unstructured data, banks can better segment and personalize home loan price positioning. AI-powered stock and share trading could use new data sources like satellite imagery relevant to commodity prices and social media sentiments around brands. These could complement established market signals like company performance and news sentiments to optimize investment portfolios. AI-enabled education, healthcare and wellness AI ultra-personalized solutions present a way to use smart tech for a fairer world. McKinsey estimates in the US AI-powered solutions could save 300 billion US dollars a year in healthcare costs. While in the UK, AI-driven preventive care could save 3.3 billion pounds yearly in decreased hospital admissions. These preventative care solutions also forecast disease spread and identify high-risk groups. Developing one new drug costs around 2.6 billion US dollars, but almost 90 percent of proposed therapies fail between first-phase trials and regulatory approval. AI-based solutions are helping speed up developing treatments and making them more cost-effective. AI's impact on society, government and the public sector AI is transforming the public sector with improved delivery, efficiency and safety. Many governments see AI as a game-changer and are putting policies in place to smooth its way. Professional services giant Deloitte's Center of Government Insights report examines how AI can redesign public sector work. For the US federal government alone, task automation could mean savings of 3.3 to 41 billion US dollars (depending on the type of task being sped up and to what extent). Debates around AI's future AI's progress and future direction are hotly debated. Everyone wants to ensure its path is ethical, transparent and beneficial. We're getting better at understanding the complexity and inner workings of AI. We must now develop a thorough understanding of where it's going. How will AI affect our ability to exercise free will? How will it impact our evolution and long-term survival? There are concerns about using AI for surveillance, including tech giants, corporates and governments using it to control, manipulate or profit. Other concerns center around how bias in data can make AI unreliable. Solutions to potential negative impacts include developing policies to ensure AI is directed at the common good. Skills for a human-centered AI-driven workplace OECD's Future of Education and Skills 2030 report recommends students develop three competencies they'll need to shape a healthy and sustainable future: Creating new value, reconciling tensions and dilemmas, and taking responsibility. University of Phoenix's Institute of the Future outlines ten work skills crucial for success in the future workplace in their Future Work Skills 2020 report, including sense-making: finding deeper meaning and significance in information and novel and adaptive thinking: coming up with solutions and responses beyond rules. AI is a vital companion to support people to thrive in the future of work. Democratizing AI is a multi-faceted problem. It's not only dependent on the progress of tech and policy making, but excellent collaboration between the public and private sector, academia and global organizations. We need a strategic plan to ensure we use AI for good outcomes. We must democratize AI throughout the lifecycle starting with its development before deployment and use. We must build human-compatible, ethical and trustworthy AI and address bias and discrimination. With the accelerating pace of AI-driven automation and its impact on work, we must become lifelong learners. We need to make proactive choices as opportunities shift and target areas where we can make meaningful contributions. That way, we'll shape a better future together in the smart technology era.
global regulations

INFOGRAPHIC: How GDPR changed the world, and privacy regulation’s future

  • min read
    • One piece of regulation has never before had such global impact as the EU Global Data Protection Regulation (GDPR.) It's firmly established data privacy in the public mind, giving extensive and unassailable rights and affecting behavior well beyond the EU's borders. GDPR legislation was a pioneer that other regions followed. The California Consumer Privacy Act (CCPA) came into force in 2020. The more expansive California Privacy Rights Act (CPRA) will replace it in 2023. While there is no federal nationwide data protection law in the US, all fifty states have regulated data safeguarding, disposal and breach disclosure. US data privacy is pointing towards giving consumers more rights. Africa and Asia, with few exceptions, have a way to go in privacy regulation. It may be fair to say data protection regulation follows economic and political development. But China has a different focus. Having enacted strong privacy regulation, it's regaining control of local Big Tech, starting with corporate dismemberment of Alibaba. It aims to control the massive amounts of data held by Chinese companies that may list overseas. New consumer expectations of data privacy GDPR and other regulations worldwide have raised awareness of privacy issues. There's a gap between what customers want and what businesses think customers want in their digital experience. Businesses think it's profiles (for example, offering relevant suggestions,) live help and price-matching. But consumers prioritize rewards, free shipping and data protection. Forced innovation is also good innovation Data protection is now front of mind for everyone. Many once saw security regulations as an innovation inhibitor adding friction to the customer experience, but now they're customer experience's new best friend. With today's cybercrime landscape, data protection has never had so much focus, driving the need for strong authentication. 3-D Secure is a great example. Ecommerce businesses saw the first version of 3-D Secure as an important tool for tackling fraud, but also the main culprit for customers not completing checkout. But the same businesses are finding the latest version, which includes new security features like biometrics, highly attractive for easier authentication across the whole customer experience. 3-D Secure's latest iteration links with new EU regulation's authentication requirements. Privacy expectations impact on cybercrime The COVID-19 pandemic has sped up changes in digital consumer behavior like never before. Security and fraud risk increased, triggering more stringent regulation. Ransomware gangs try to extort money from victims by encrypting their data, but also releasing it if the ransom isn't paid, adding data privacy insult to injury. Nations are stepping up to address ransomware, now the world's biggest cyberthreat. But it's early days. Attempts to reduce ransomware risk are sometimes surprising with little consensus on how to address it, like US proposals to make ransomware payments tax-deductible or, conversely, making paying a ransom illegal. Once a profitable niche, cyber insurance now struggles to stay afloat with increasing ransomware and skyrocketing demands. Emerging trends in data regulation and oversight Data protection and privacy regulations are now part of life. We also see several emerging trends. For example, increased data protection and privacy oversight; in the three years since GDPR, nearly half of UK businesses have been reported to the Information Commissioner's Office over breaches. With longstanding data breach disclosure laws in the US, a new bill could force businesses to report breaches faster. India has long deliberated its Personal Data Protection Bill (PDP.) We're also seeing financial and security regulations aligning. Financial services regulations now include extensive obligations overlapping with security. Penalties are no longer the sole domain of national data protection authorities but could come from any regulator. UK's Financial Conduct Authority fined Tesco Bank 16.4 million pounds sterling for failing to protect customers' accounts and not doing enough to prevent financial crime. And we see increased desire to control Big Tech. The most notable example started in China with Alibaba in 2019. New Chinese data protection regulation has more scope for oversight, as we saw with the crackdown on ride-hailing service Didi and others. China perhaps sees its companies listed overseas as a national security risk because foreign governments could scrutinize the massive amounts of data they hold. But there are other risks: Several shareholders sued Didi since their share price fell after regulatory crackdown. It's not just China wanting to rein in Big Tech and their data – security concerns led to Germany's data protection commissioner telling government organizations to shut down their Facebook pages. UK's draft Online Safety Bill proposes a new Big Tech oversight body to help tackle illegal and harmful online content. Another trend is increasing regulatory oversight of start-ups, especially in fintech. Stock trading app Robinhood must pay 30 million US dollars to the New York State regulatory body for cybersecurity and anti-money laundering failures. The Swedish financial regulator is investigating buy-now-pay-later firm Klarna for data privacy breaches. Coming soon: The data regulation to prepare for Data regulation laws are often challenged. In Europe in 2020, the Schrems II judgment invalidated Privacy Shield, the data-sharing mechanism between the EU and the US. Austrian activist Max Schrems scored a major win as his case questioning Facebook's legal basis to collect data was referred to the EU Court of Justice. Trump's US attempt to ban TikTok and WeChat shows this isn't confined to the EU. India's Reserve Bank banned Mastercard from issuing new credit and debit cards for not keeping to local data storage rules. Three years since GDPR came into force, regulators aren't standing still. In April 2021, the EU Commission published a draft proposal to regulate artificial intelligence in line with GDPR. With increased automation globally, this is one area to watch.
by Innovating leaders.
Innovative tech.
About Secure Futures

Secure Futures magazine is your go-to business guide for opinions, trends and insight into the world of technology and cybersecurity. We help your business to bring on the future. Brought to you by Kaspersky, the global cybersecurity experts.

  • For all other countries