Connected technology is the lifeblood of the Internet of Things (IoT), or so say the new predictions from market data company Forrester Research.
The company has put together a list of IoT predictions for 2018, highlighting the increasing impact that connected technology is having upon businesses. The new findings come in a report titled “Predictions 2018: IoT Moves From Experimentation To Business Scale.”
According to a recent McKinsey report, the economic benefits of the IoT are expected to reach between $3.9 trillion and $11.1 trillion within the next decade. The effects of the IoT will be across all industries, and industry leaders will need to understand where their resources can be properly allocated in order to gain the benefits of this transformative tech.
IoT platforms to get more specific
Forrester predicts that IoT platform offerings will start to specialize in “design” and “operate” scenarios.
“Design” use, Smart2Zero interprets, refers to case scenarios that involve creating connected offerings or with environments to engage with customers. In contrast, “operate” use cases are set to enhance processes, creating new efficiencies or enhancing customer experiences.
In line with a growing number of commentators, the Forrester report indicates that there will be a shift away from platforms that are general, like the Microsoft Azure IoT Suite or the General Electric Predix, and towards smaller companies offering specialized IoT services.
The kinds of specific offerings that enterprises could pilot and roll out include voice-based services to consumers and Infrastructure as a Service (IaaS) services.
B2B opportunities and cybersecurity risks
“IoT is re-shaping how businesses are organized, including the roles and responsibilities of individuals — and how they work together” said Christopher Voce, Vice President, Research Director at Forrester. “Capturing the promise of any of these scenarios requires organizations to collaborate in new ways.”
Forrester’s research predicts there will also be more exchanges of data and insights between firms. This will lead to more B2B opportunities for companies commercializing data analysis.
Of course, as Forrester’s report points out, this new connected technology comes with well-documented risks. Implementing IoT solutions in businesses currently comes with a large amount of security risk. This could lead to an increase of IoT-related cyberattacks next year and beyond.
According to a study by consulting firm Altman Vilandrie & Company, 48 percent of participating companies have suffered at least one IoT security incident. And almost half of the businesses featured in the study with annual revenues over $2 billion estimated the potential cost of an IoT breach at more than $20 million.
IBM backs blockchain solutions for developing Canadian cannabis industry
Canada’s soon-to-be legalized cannabis industry could create as much as $22 billion in revenue, and now provincial governments are searching for tools to deal with the newly regulated commodity.
Tech industry leader IBM sees blockchain as an ideal way to ensure transparency in the new cannabis market and to address concerns with criminal activity or fraud. IBM has suggested that Canadian officials evaluate the advantages of using blockchain to control the supply and management for the growing cannabis market.
Blockchain brings cross-industry transparency
Blockchain is a shared digital ledger that records transactions, allowing for the transparent tracking of exchanges. IBM is promoting blockchain technology as a valuable tool for a wide range of business sectors, particularly regulated industries.
The technology company partnered with banking groups such as Bank of Montreal and UBS to create a trading platform based on blockchain technology, called Batavia. IBM is also pursuing the use of blockchain to improve food supply chain safety along with a group of leading food retailers.
The pharmaceutical industry is already witnessing the benefits of blockchain’s advanced digital ledger technology. According to Pharmaceutical Technology magazine, the industry can use the new technology to ensure security, and blockchain can aid with the secure transmission of sensitive patient data and clinical information.
Tracking cannabis from plant to store sale
IBM have passed on their proposal to the government of British Columbia, according to the website Smat2Zero. The proposal outlines how blockchain can be used to track the distribution of the drug, from cultivation to point of sale.
IBM suggests that blockchain will aid and offer visibility for sourcing, selling, and pricing of products. Moreover, certified producers will be able to track inventory and supply.
The technology company submitted their proposal in response to a request for public feedback issued by the Western Canadian province.
A new kind of network
Through the use of data analytics, producers will also be able to make meaningful demand projections and review consumption trends. Moreover, everyone within the network will be able to see all of the data; real-time data collection would further allow the cannabis products to be tracked and traced at any given time point.
IBM pointed out that, “This type of transparency would bring a new level of visibility and control to the provincial regulators.”
While the potential application of blockchain to cannabis production is headline grabbing, the news adds another layer to the growing applications of blockchain to pharmaceuticals and healthcare.
The exchange of data in healthcare happens in high frequency among stakeholders, across varying platforms and technologies, creating the risk of error and vulnerability to cyberattack. Blockchain could be the key to changing that high risk exchange for the better.
Understanding the legal risks of deploying AI in businesses
Artificial intelligence (AI) is bringing an array of opportunities and challenges to businesses. Not least of these new changes is legal risk.
DX Journal spoke with Carole Piovesan, Litigator and Team Lead on AI, Privacy, Cybersecurity and Data Management group at McCarthy Tetrault, to find out how AI will affect businesses, who should be addressing the legal risks AI poses to society and how the legal practice itself is being affected by AI.
DX Journal: To what extent does AI pose a legal risk to enterprises looking to incorporate this technology?
Carole Piovesan: Since there’s a lot of talk about AI, let me start with a very short definition. AI is an umbrella term that encompasses different processes such as natural language processing (like Siri), image recognition, machine learning and deep learning. The “AI” that draws a lot of attention these days – both negative and positive – is usually machine learning and deep learning, both of which involve self-teaching and self-executing systems.
AI offers a lot of opportunity for businesses looking to improve efficiencies and cut costs. Depending on the purpose of the system, however, it can present certain legal risks.
For instance, AI systems require lots of data to train systems on how to accurately perform a certain task. Access to data is largely governed by the Personal Information Protection and Electronic Documents Act which sets parameters for how to legally access, store and use data, among other things. Companies need to understand how to comply with privacy legislation to avoid reprimand or sanction. In addition, amassing huge quantities of data could lead to competition issues around data monopolies, among other things.
Then there is the issue of liability where a system does something it shouldn’t have done or doesn’t do something it should have done. In self-teaching and self-executing systems, questions arise as to who should bear liability for harm caused by the system. This leads to the corollary issue of proof. The pathway to a particular output for these systems is notoriously difficult to understand.
There is a whole movement around increasing the interpretability of AI systems, particularly where systems are used in matters that directly affect human life such as medical diagnosis and criminal law.
DX Journal: Which industries are likely to be most affected by the legal risks that AI brings to businesses?
Piovesan: I wouldn’t think of it as industries that will be most affected by AI, but tasks. Every industry has the potential to be affected by advanced technologies including deep learning systems. The idea is that AI systems can perform routine, repetitive tasks better, faster and cheaper than humans. Every industry has processes that are repetitive in nature and that can be improved by AI.
That said, in the near-term, industries that are expected to be deeply affected by AI include transportation, medicine, law, insurance, accounting, manufacturing, retail, financial services, among others. Sectors that are less obvious but that are benefitting from AI include oil and gas, and mineral extraction, in which AI is being used to more safely and efficiently extract natural resources.
DX Journal: What should businesses focus on as they begin to onboard AI tools?
Piovesan: Depending on the purpose and complexity of the technology, business will want to develop a better understanding of AI technologies, as well as risk management strategies for incorporating more sophisticated technologies into their operations. Increasingly we’re seeing an interest in creating legal assessment tools specific to AI technologies.
DX Journal: Who is addressing the legal risks created by AI in society?
Piovesan: Many different actors have a role to play in ensuring safe, beneficial and productive innovation. I would say that provincial and federal governments need to kick-start a dialogue with the academic and private sectors around issues specific to AI technology. One critical area for greater discussion is with respect to the interpretability of AI systems, and requirements for explainability for systems used with direct impact on human rights and well-being.
The EU and UK are examples of jurisdictions that are undergoing regular consultations to inform a possible regulatory framework on AI. Canada has also done such consultations but I think more is needed.
The academic and private sectors are tasked with advancing innovation but, as we have seen with the 2017 Asilomar principles, for example, they can also lead in defining appropriate standards and codes of conduct to promote responsible and productive research and innovation.
Canada is well-situated in the AI field. Some of the foundational thought-leaders of deep learning are based in Canada. We have tremendous academic talent here.
Plus, the federal government announced $125 million in research and development focused AI and nearly $1 billion over 5 years to promote innovation superclusters.
These announcements made international headlines which is important to show the world that Canada is the place to be for research and innovation (not to mention we are known for having the second largest tech sector outside Silicon Valley).
Finally, Canada is a well-respected international player and AI is technology will require a coordinated international approach, especially with respect to data sharing and in the military and defence contexts. Canada is very well placed to add-value to any international dialogue on AI.
DX Journal: How is AI changing the legal practice itself?
Piovesan: AI presents tremendous opportunity in the legal profession. As lawyer become more exposed to and comfortable with the technology, we will increasingly incorporate AI into all aspects of our practice.
The law firm can use AI to streamline internal processes such as mandate scoping. By understanding how much a typical piece of legal work costs, law firms can more quickly and accurately estimate new work that is similar in scope.
At my firm, McCarthy Tétrault, we’re using AI in M&A due diligence work. In so doing, we’re able to complete due diligence for an M&A transaction in a fraction of time and for a fraction of traditional costs.
AI is also being introduced on the litigation side through systems that can complete legal research of concepts. It is also being used in e-discovery to increasingly categorize documents and predict relevance.
KPMG says blockchain ‘critical’ to industry, joins advocacy group
KPMG has joined the Wall Street Blockchain Alliance as a corporate member and has declared blockchain as “critical to the industry,”
Blockchain is gaining momentum across different industries as its benefits start to become clear. The concept of a distributed and transparent ledger gives businesses a way to improve efficiency, cut down waiting times and open new revenue streams.
KPMG is the latest major firm to publicly commit to furthering adoption by joining a working group.
The Wall Street Blockchain Alliance (WSBA) is a non-profit trade organisation that’s working to advocate the introduction of the blockchain in financial services markets worldwide.
KPMG said it’s joining the group so it can work with leading blockchain experts and help to promote use of the technology within the finance industry. It’s pursuing several long-term goals, including an improved customer experience and reduced operating costs.
“Blockchain is maturing toward the production phase and it is clear that it has the potential to dramatically impact financial services by improving outcomes critical to the industry such as cost of operations, capital consumption, customer experience and in some cases new business models and revenues,” said Eamonn Maguire, global leader of KPMG’s Digital Ledger services.
KPMG’s decision to join the WSBA will give the alliance more visibility as it develops standards for blockchain use within the financial markets. A common set of standards will allow for those within the industry to collaborate on a shared blockchain platform.
Existing corporate members of the alliance include Calypso Technology, RiskSpan, OTC Exchange Network, BlockEx and blockchain analytics platform Blockchain Intelligence Group.
The addition of KPMG will provide a direct bridge between the predominantly tech-centric existing members and the industry that the alliance intends to transform.
“We look forward to collaborating with them, as our global members and indeed the world, begin to implement blockchain innovations across financial markets and beyond,” said Ron Quaranta, Chairman of the WSBA.
Professional Services1 week ago
Understanding the legal risks of deploying AI in businesses
Culture3 weeks ago
Developing insights leads to digital transformation success, says BGIS VP of Strategy
Culture2 weeks ago
Cisco: 75% of IoT projects are failing due to lack of expertise
Energy1 month ago
Chevron and Microsoft create ‘digital core’ for fuel business
Technology3 weeks ago
HP rolls out AI-powered ‘virtual agent’ to solve customer queries