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Cybersecurity predictions 2024, a bright bridge leads to the darkness

Growing cyberthreats for business leaders to keep on top of in 2024

  • min read
    • Just as things seemed to be settling down post-pandemic, 2023 turned out to be a year of global political upheaval, conflict and climate catastrophe. Recession impacts and rising prices for business basics like electricity have seen closures rise and start-ups decline. Congratulations are in order if your organization still has its head above water. The last thing any business needs in 2024 is a highly damaging and costly cyberattack or data leak. IBM's 2023 Cost of a Data Breach report found, "The average cost of a data breach reached an all-time high in 2023 of 4.45 million US dollars," having increased over 15 percent in the past three years. Keeping track of how cyberthreats are changing and adjusting your cybersecurity strategy and resourcing accordingly will help businesses avoid the punishing cost of a breach. Here are some of the changing and new threats Kaspersky researchers think you should prepare for in 2024. AI-related threats AI and other interconnected technologies – think augmented reality (AR,) 6G, data spaces and more – made a huge splash for business in 2023, and we'll soon be releasing some exciting new research about the impact of their widespread adoption. On top of that, we think these changes will loom large for AI in 2024: 1.    AI tools will make scams more convincing Scammers use many techniques to get past our defenses. AI tools can now effortlessly create stunning images, even designing whole landing pages. Malicious actors will, of course, use these to craft more convincing materials for fraud, like fake marketing emails and login screens. Expect fraud-related cyberthreats to increase. What to do about it: Improve your employee cybersecurity awareness education to help them become more vigilant to potentially fraudulent content. Use robust antivirus software to block scam emails and warn about suspicious websites. 2.    Concerns about pre-trained AI models will rise As more organizations start using AI chatbots and large language models (LLMs) to help professionals with their work, privacy and security concerns around the data fueling these models will rise, especially in large businesses that deal with a lot of information. And for good reason – training common LLMs often relies on public datasets containing sensitive information, raising uncertainty about whether corporate data fed into these models will stay confidential or be used to train the model further. What to do about it: Businesses must adopt policies limiting how employees can use AI products and educate staff about these policies to reduce the risk of data leaks. They may also adopt Private Large Language Models (PLLMs) – these models are trained only with datasets owned by the organization using them. 3.    AI regulation will ramp up More countries and international organizations will join efforts to regulate AI in the coming year, especially African and Asian nations that are engaged in discussions but haven't yet begun regulating AI domestically. Those already involved will expand regulation, adopting more specific rules, for example, around creating training datasets and using personal data. With their experience developing and using AI, businesses can offer invaluable insight for discussions on AI regulation. Policymakers worldwide are actively seeking input from businesses, academia and the public on shaping AI governance. In 2023, the Bletchley Declaration promoted greater uniformity in AI regulation. But with rising geopolitical tensions, cooperation between countries may reduce, derailing efforts to keep it consistent. What to do about it: Ensure your business is staying ahead of developments in regulation and planning for how it will comply. Take opportunities to get involved in developing AI regulation. More 2024 AI security predictions from Kaspersky researchers Financial services threats 4.    Fraudsters will target direct payment systems Cybercriminals will exploit increasingly popular direct payment systems like Brazil's Pix, the US's FedNow and India's UPI for fraud. We'll also see more clipboard malware – malware that steals data users copy to their clipboard – designed to attack new direct payment systems. Mobile banking trojans will increasingly exploit these systems as a quick and efficient means of cashing out ill-gotten gains. What to do about it: Direct payment systems have enormous benefits for business but must be appropriately secured. Businesses can also educate customers to help reduce their likelihood of accidentally downloading clipboard malware or mobile banking trojans – often disguised as legitimate apps in trusted app stores. 5.    Mobile Automated Transfer Systems (ATS) will spread worldwide Mobile Automated Transfer System (ATS) attacks are fairly new and involve banking malware making fraudulent transactions when the user logs in to their banking app. Mobile ATS has only been seen in Brazilian malware types but could go global in 2024. What to do about it: Those who make banking apps must ensure their security is capable of defending against Mobile ATS. 6.    Brazilian banking trojans will also keep spreading Cybercrime originating from Brazil is well-known to be growing. As many Eastern European cybercriminals have shifted focus to ransomware, Brazilian banking trojans will fill the void left by desktop banking trojans. Trojan Grandoreiro has already targeted more than 900 banks in 40 countries. Grandoreiro attacks start with a malicious link in a phishing email, including fake shared documents, utility bills and tax forms. It then harvests data using keyloggers, screen-grabbers or overlays on online banking login pages. What to do about it: Despite the growing sophistication, cybersecurity awareness education still helps employees and customers avoid falling prey to phishing. Businesses must also make sure users feel comfortable reporting their suspicions. More financial services cybersecurity predictions for 2024 Advanced persistent threats 7.    Creative exploits of wearables and smart devices will grow In 2023, Kaspersky discovered Operation Triangulation – a stealthy new espionage campaign targeting Apple devices. Kaspersky's investigation found five vulnerabilities in Apple's operating systems that affect everything Apple – from smartphones to wearable devices to smart home gadgets like Apple TV and Apple Watch. In 2024, we'll see more advanced attacks on consumer devices and smart home technology, including other operating systems. Devices like smart home cameras and connected car systems are attractive for threat actors because of their surveillance potential and tendency to run on outdated software, which makes them easier to attack. What to do about it: Secure your business Internet of Things (IoT) devices and ensure that if they don't need to connect to the internet, they don't. 8.    Supply chain attacks-as-a-service: Bulk-buying access There is a growing trend of attacking businesses through their suppliers. Small and medium companies that may lack advanced protection become gateways for hackers to access the data and infrastructure of big players. 2022 and 2023 saw breaches through identity management company Okta, which serves over 18,000 customers worldwide. What to do about it: Supply chain attacks expert Eliza-May Austin has great advice on preventing supply chain attacks in this Tomorrow Unlocked video: 9.    More attacks on Managed File Transfer systems Managed File Transfer (MFT) systems that let businesses securely exchange sensitive information with partners have become a cornerstone of organizational efficiency. But housing confidential information like intellectual property, financial records and customer data puts them in the crosshairs of cyber adversaries. MFT systems' intricate architecture and integration into business networks also means potential security weaknesses. In 2023, MFT system incidents involving MOVEit and GoAnywhere confirmed this. What to do about it: Undertake comprehensive reviews of your MFT solutions to identify and reduce security weaknesses. Implement robust Data Loss Prevention (DLP) solutions, encrypt sensitive data and build a cybersecurity awareness culture among employees. More advanced persistent threat predictions for 2024 With attention to where threats will likely grow, the year ahead need not be daunting for business. From getting ahead of AI regulation to improved cybersecurity awareness education, organizations of all sizes can stay secure even as threats grow.
Robot fires lasers at a computer network, obliterating it while another robot watches

Predictions for Earth 2050: How will cybersecurity change?

  • min read
    • If you're like me, having a long-term vision is a wonderful aspiration… frequently quashed by today's more screamingly imminent 'to do' list. Five-year plan?  I'm still working on the next five days. But the next five minutes? That's a no-brainer: let's get immersed in the futuristic predictions for the world in 2050, and the evolving role of cybersecurity in it. Cyber-immunity will intuitively protect our systems Predicted by: Eugene Kaspersky, CEO, Kaspersky In 2050, digital systems have moved up to a whole new level. They're no longer assistants making life easier for us mere mortals, they've become the basis of civilization – the very framework keeping the world functioning properly. This quantum leap forward has generated new requirements for the reliability and stability of artificial intelligence (AI). Since the romantic era around the turn of the 21st century, cyberattacks are not yet extinct, but they're now only a threat to outliers who reject modern standards of digital immunity. One of the pillars of cyber-immunity is digital intuition, the ability of AI systems to make the right decisions in conditions where the source data is insufficient to make a rational choice. There's no mysticism here: digital intuition is the logical continuation of machine learning. When the number and complexity of related self-learning systems exceeds a certain threshold, the quality of decision-making rises to a level that eludes rational understanding. An intuitive solution results from the superimposition of the experience of a huge number of machine-learning models, much like the result of the calculations of a quantum computer. Digital intuition – with its ability to instantly, and correctly, respond to unknown challenges –has helped build the digital security standards of this new technological era. The robot servants are uprising Predicted by: Vitaly Kamluk, Director, Global Research & Analysis Team, Kaspersky Busy workers rejoice! Help for your home is arriving. A robot servant will cook your meals, do your laundry and clean your apartment. These autonomous systems will be able to carry out many complex tasks using the processing power of a central intelligent system, and in tricky situations, they'll switch to remote technical support managed by real people. There will be mass attempts to hack these helpful robots by labor rights activists and criminals trying to blackmail their owners. Since the servants will all be equipped with cameras, microphones and sensors, they offer a unique viewing platform for home-based espionage. Expect compromises of the manufacturers' infrastructure and the implantation of malicious code in devices with the aim of enacting, en masse, attacks that could be serious. The man(less) mining machine Predicted by: Andrey Nikishin, formerly Future Technologies Project Director, Kaspersky Mining is a fully automated process; people are not needed and former miners regain their health. One robot extracts rock from the soil, the second cleans it, the third guards the perimeter, while the fourth delivers the purified ore to industrial consumers. A hacker who gains access to the system can re-program individual robots so they take a small amount of the platinum ore to an unauthorized place. The guard robots are also hacked, so they're unaware of this theft. The big reveal of dynamic clothes Predicted by Vladislav Biryukov, Head of Consumer Social Media, Kaspersky Dynamic clothing is à la mode. The fabric's characteristics – color, pattern, lighting, transparency, and in advanced models, even the cut and length – can be automatically changed. Some people now wear shirts or dresses with variable transparency levels, which allows them to reveal more at any moment they choose. Few people 'program' their clothes by themselves; most enjoy free fashion patterns or, for the fashionistas, expensive programs from well-known designers. Initially lacking security, the process of getting a smart clothing upgrade has led to the emergence of a new kind of extortion. "Heading to a business meeting, sir? Transfer 10 bitcoins to this account number now, or we'll expose you!". The naked truth in the boardroom. Awkward. Not quite the transparency in business we were hoping to achieve in 2050. A quantum (computing) leap threatens cryptography Predicted by Alexey Malanov Cryptography is widely used in many spheres of online activity. It's no exaggeration to say that the world will experience a huge shock if suddenly everything that's encrypted today is unlocked. How cryptography works: some operations can be easily carried out in one direction, but they're very difficult to reverse. For example, an image can be quickly transformed into a picture puzzle, but to arrange all of the pieces back into the picture takes much longer. Modern public-key cryptography is based on this principle: I know two numbers, I have multiplied them and told everyone the answer. Now everyone can encrypt a message for me using the result of the multiplication, but only I can decipher this using the original multipliers. There are already quantum computers that allow you to quickly solve problems that seem to be circuit-breaking for conventional computers, like how to de-compose a composite number. The only obstacle to the end of the digital world – let's call it 'cryptocalypse' – is that quantum computers can only work with small numbers. But by 2050, quantum computing will allow security services or master criminals to access universal decryption, and they may choose to do bad things with it. For example, if a villain steals your credit card, he or she will immediately know your PIN. The ability to decipher brings with it the opportunity to forge: an ATM informs the bank one thousand dollars are withdrawn, but the villain falsifies the message to say only 10 dollars were taken out. We will need to develop new safety standards – fast. On the bright side, encryption helps with verification so you can be sure you're actually on your real bank's website, not a cleverly cloned fake, when you wire the ransom to keep your business suit from turning into your birthday suit. Phew! One challenge solved.
QR code containing many everyday items such as a coat hanger, microwave and shopping cart.

COVID-19 made QR codes huge, but what’s their future?

  • min read
    • If you've visited a restaurant or store recently, chances are you've seen and used the ubiquitous small squares that make up a QR code. During the COVID-19 pandemic, the small squares that make up a QR code became ubiquitous. Our exposure to these codes was never higher, nor their value clearer. But how did we get here? Why are QR codes today's technology of choice for navigating our lives? Let's step back to Japan, 1994. Where QR codes began Automotive components manufacturer Denso Wave had a frustrating problem on their supply line. They were using bar codes on their components that workers had to scan for information they needed. But bar codes became limiting for the company because of the small amount of information each could hold. The company gave one of their young engineers, Hara Masahiro, the task of developing a solution. Bar codes are one-dimensional (read along one axis,) but Masahiro's creation was two-dimensional: Read horizontally and vertically. It increased the information held from just 20 characters to 7,000. The speed these new codes introduced to manufacturing created its own problem. Technologist Simon Raik-Allen explained it to me like this: "Imagine a conveyor belt with all the products going past. You want a camera to see which products are where. If they go too fast, the camera won't read it." Since then, eagerness to adopt QR codes in business and personal lives has varied. Asia has been the keenest adopter, with QR codes playing a central role in digital payments. In China, consumers use WeChat or Alipay apps to make some 90 percent of mobile payments, and both use QR codes to facilitate the transaction. In Africa, M-Pesa has started to incorporate QR codes into its text message banking service. In Europe and North America, uptake had been less enthusiastic – until now. A 2015 TechCrunch article called QR codes "frustrating" and a "laughing stock." Brands eager to plaster QR codes wherever they could and the likes of QR code tattoos led to perception the codes were a gimmick. The user needing to download a QR code scanning app may have contributed to this sense of needless novelty. In 2017 things changed. Phone manufacturers began incorporating QR code scanners into camera apps so users didn't need to download an app. Improvements in mobile technology letting scanned links open more quickly also played a part, according to Joe Waters, author of QR Codes for Dummies. These improvements planted the seed that allowed the technology's quick adoption in the pandemic when the need became clear. Waters says, "People now want as little contact as possible with everyday objects that may spread germs." This poses a novel question: Will our newfound familiarity with QR codes lead to new uses in the coming months and years? How should business and tech leaders be thinking about QR codes? The Future of QR codes Large retailers like Amazon have started experimenting with QR codes to track and for payment in their physical stores. But opportunities are opening for retailers of all sizes, especially around demonstrating sustainability and environmental credentials. Fashion label Another Tomorrow uses QR codes on labels to give consumers more information on the clothing item's sustainability. Provenance uses blockchain to make supply chains transparent, with QR codes for consumers to see evidence of what the brand claims. The 2021 'right to repair' EU law means consumer electronics manufacturers must add a QR code for more information on the product, like how loud it is. Securing QR code-reading for business Data security is a pressing concern with widespread adoption of QR codes. Consumers and businesses may not have known the security risks as they rapidly adopted the technology in the past 12 months. David Emm, Principal Security Researcher at Kaspersky, says "A tainted QR code might ask a user to download a malicious app containing malware. The malware could then steal personal information." Businesses can reduce their risk by using a reputable, up-to-date QR code scanner. It also pays to raise awareness among staff and customers of malicious QR codes, for example, advising they consider whether a code looks tampered with before scanning it. The battle for a new technology's acceptance is won when the audience understands what it does that no other technology can do. The pandemic gave the QR code a chance to show it was no gimmick. Business should expect to see QR codes used more widely and creatively, and consider how those game-changing 7,000 characters could help them do business better.
paper dead shredder

Is paper dead?

  • min read
    • For retailers, predicting customers' future wants and needs is crucial – especially in this era of disrupted supply chains. I hope you won't recognize this story as something that might happen in your business, but it demonstrates how soon retailers of all sizes could find themselves in a new future. I bought a blouse recently from a traveling vintage clothes seller. Picture several racks of bright retro outfits set up under a caravan awning with a changing room crafted from tie-dyed blankets. Incense hangs in the air, as does the ringing of tiny bells attached to the seller's impossibly long hair, jingling as she wanders around after customers, straightening coat hangers. To pay, I offer cash, but she instead presents me with a beautifully calligraphed sign showing her bank account details. Given the riskiness of this practice, I offer a moment of security education. She tells me she's in the habit of giving out her bank details because it means more sales, and keeping enough change around is hard when you're always on the road. Even those on the fringes are moving towards electronic payment for its convenience and customer preference, albeit sometimes not in ideal ways. When it comes to meeting customer expectations in how your transactions happen, are you ready for a future where paper money, receipts, plastic cards are a thing of the past? Could your retail business work in a world where all money is changing hands by smartphone? Among Kaspersky researchers' privacy prediction for 2023 is that we'll keep seeing smartphones and other smart devices encroaching on activities once dominated by paper and plastic cards. A future where all we'll need is a smartphone seems close when we're paying by near-field communication (NFC) like Apple or Samsung Pay or QR code like Swish, or using apps to show COVID-19 testing and vaccination status. What does this mean for paper and plastic transactions? And what privacy and security issues should business consider when it comes to doing it all by smartphone? Environmental reasons to stop using paper and plastic Some might say the sustainability drive to eliminate paper and plastic in business transactions is overplayed. While both have significant environmental impacts, business transactions are not a major source. Meanwhile, electronic transactions can be responsible for much energy use and the equipment used will ultimately become resource-heavy and hard-to-recycle ewaste. Gen Z, Millennials and those younger will do much to avoid adding more plastic and paper to the world. Regardless of environmental impact, consumer demand for more convenient paperless and cardless transactions will only grow. Processes likely to move to smartphone apps Digitized identity documents look set to be the next big frontier for smartphones. It's already been a common approach to declaring COVID-19 testing and vaccination status worldwide, but soon passports, driver licenses, student IDs and more will be made available through apps. Germany started using app-based ID cards in 2021. Around the same time, Apple announced several US states would make digital identity cards and driver licenses available using Apple Wallet. ID stored on phones brings convenience and risk. A well-implemented system would let stores verify customers' age without seeing personal details they don't need, like home address – also known as 'zero trust' security. Digitized IDs could also speed up know-your-customer (KYC) procedures when applying for a loan with a smartphone. But using a smartphone to store growing amounts of personal data introduces 'single point of failure' security risk. Those who develop and commission smartphone software like apps must ensure top-notch device security and privacy-preserving data storage. Cardless cash withdrawal at ATMs is taking off around the world, especially where bankcard fraud is more common, like India. Smartphone apps enable cardless withdrawals, for example, scanning a QR code on the ATM screen with a payment app like Google Pay, or using near-field communication (NFC.) Again, these transactions aren't without risk. Speaking to price-comparison service Bankrate, Ricardo Pina, founder of personal finance blog The Modest Wallet, said, "Since bank cards are being replaced by phones, criminals will now be more enticed to target and hack your phone to mine your data, information and even change your phone and bank app settings." When will paper and card transactions become history? Those who run businesses that experience higher overheads thanks to processing cash, cards and printed receipts may dare to dream of a world where these go the way of the 'check.' Ubiquitous throughout most of the 20th century, many banks have stopped issuing and accepting these. Check payment is expected to be extinct by 2026. Those old enough to remember when checks were commonplace might think they'd disappeared years ago. But sometimes these methods strongly persist in parts of an economy that need them for specific reasons. A few years ago, a friend and I hiked the five-day South West Coastal Path in Cornwall, UK – and yes, it was glorious. This part of the UK is far from any major city. We were surprised to notice most bed-and-breakfasts  accepted only cash or check. Once we understood the area's geography, we paid by check wherever we could. Traveling on foot and far from towns, it seemed unwise to part with cash we might need. These businesses told us they didn't take card payments because they only had customers in summer, making point-of-sale machines uneconomic. Similarly, can smartphones – and reliable access to affordable data to operate apps – be all things to all people in all places? While access to mobile technologies has certainly enabled greater economic participation from marginalized people, we can easily overestimate how many can and will use these technologies if we use them or see them used around us often. Pew Research estimates around 85 percent of the US population owns a smartphone, but in China and India, it's lower at 70 percent. While China leads the world in mobile payment adoption, smartphone ownership numbers don't tell us how many people could use their smartphone for payments – for example, successfully download and register to use payment apps, and access data when needed. Cash transactions still account for far more business than many people think – in 2021, customers used cash for over 20 percent of point-of-sale transactions globally, according to the International Currency Association. Many businesses wouldn't survive losing 20 percent of their sales. There is also the inevitable backlash against smartphones because of negative mental health impacts, seeing some choose to quit or radically reduce how much they use them. It seems paper- and card-based identity and payment options will be with us much longer than we think, if the lifecycle of check payment is anything to go by. For small business, alternative point-of-sale card payment providers are fast making accepting cards more affordable, making paying by card even more ubiquitous without reducing security. When it comes to taking payment, it 'pays' to be flexible and listen to what your customers want, rather than focusing on what suits your business. Meanwhile, keep an eye on evolving technology making retail transactions simpler and more affordable.
cyber threats business 2022

Five business cyberthreats taking center stage in 2022

  • min read
    • Every year, businesses face a changing threat landscape. It pays for leaders to know what the experts think will come next. If you're upgrading your cybersecurity or looking for a new vendor, knowing what attacks are likely in 2022 will help you make the right choice. It turns out our predictions for 2021 were on the money. So what should you and your colleagues plan for this year? We're forecasting these four events that could have flow-on effects for other industries. 1.  Financial organizations will face more threats around cryptocurrency Cryptocurrency keeps growing, and people will keep investing in it for many reasons, including its anonymity, which also makes it attractive to cybercrime groups. In the scramble for cryptocurrency investment opportunities, cybercriminals will use social engineering campaigns, fabricating and selling rogue devices with backdoors to steal financial assets. More financial industry cyberthreats we'll see in 2022 2.  Fake medical documentation will trouble healthcare We saw the trade in faked medical documents like COVID-19 vaccination passports and test results in 2021. Fake vaccines were even spotted for sale on the dark web. As more countries roll out privileges alongside vaccination or test documentation, criminals will roll out more fakes. Medical-themed bait has long featured in cybercrime. With the pandemic triggering increased use of online medical services, patients watch for notifications about test results and messages from doctors. More healthcare cyberthreats likely in 2022 3.  Governments will conflict and compromise with big tech Governments are wary of big tech's growing power and data hoarding. As states build more digital infrastructure for delivering services and deeper insights into their population, they'll show more interest in what citizen data big business holds. We'll see more regulation, such as privacy and data localization laws, and regulation around how law enforcement can access data. Apple's new system that scans devices for child abuse images shows the challenges of balancing user privacy against stopping crime. More privacy predictions for 2022 4.  Industrial attacks will become more focused In many parts of the world, a rapidly snowballing trend is laser-focused attacks, particularly on Industrial Computer Systems (ICS.) We've seen increasing theft of authentication data using spyware, with each attack directed at only a handful of targets. We think these kinds of attacks will make up an even greater portion of the threat landscape in 2022, and we'll see the tactic used more widely. These attacks show why industrial shop floors must be protected. Industrial internet of things (IIoT) devices are easily overlooked and often vulnerable. More predictions for industrial cybercrime in 2022 5.  Ransomware attacks will get more targeted 2021 was a big year in ransomware, with a 30 percent growth in Ransomware 2.0, also known as double extortion. These attacks go beyond demanding a ransom to de-encrypt systems to using stolen sensitive data as leverage to pressure victims to pay up. In November 2021, the US FBI warned ransomware actors are "using significant financial events, such as mergers and acquisitions, to target and leverage victim companies for ransomware infections." At these times, any leaked information could have devastating consequences, making victims more inclined to pay ransoms. In 2022, this type of extortion will become more common. Regular, high-quality cybersecurity training for all staff is one of the best ways of avoiding falling victim to ransomware. Kaspersky is one of several organizations behind the No More Ransom initiative, providing free decryption tools and advice for ransomware victims. More on ransomware activity in 2021 As your strategic plans for 2022 take shape, improving cybersecurity will no doubt be among them. Your business must adapt as cybercriminals' ways and means change. These predictions will help you and your team be forewarned and forearmed.
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.
by Innovating leaders.
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