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Consumers Pump the Brakes on Autonomous Vehicle Adoption

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Consumers’ appetite for self-driving vehicles lags the automotive industry’s pace of investment in advanced vehicle technology, according to the “2019 Deloitte Global Automotive Consumer Study.”

Consumer trust in autonomous vehicles (AVs) appears to be stalling. In the U.S., 50 percent of survey respondents do not believe AVs will be safe, nearly the same as last year’s 47 percent. That is drastically different from consumer sentiment in 2017, when 74 percent voiced concerns about these vehicles’ safety. Other markets saw similar plateauing, with the share of consumers in China, Japan and South Korea who believe AVs will not be safe decreasing modestly; and Indian and German consumers both showing slight increases in their distrust.

“Autonomous vehicles have begun to enter the real world in pilot testing and have consequently encountered real world challenges,” said Craig Giffi, vice chairman, Deloitte LLP, and U.S. automotive sector leader.

“A series of high-profile incidents may have contributed to the plateau in consumer trust in this year’s study, but there will likely be a longer-term trend toward gradual acceptance,” says Giffi. “Even so, consumers have a much higher bar for acceptance of fully-autonomous vehicles than for driver assistance safety technology. Along with today’s consumer skepticism, the industry needs to thoughtfully factor into its plans the long capital investment cycle that will be required to bring flawless autonomous vehicle technology into the mainstream. This includes elusive business models for generating ROI and it’s all combined with the likely increase in regulatory oversight that is on the horizon.”

Deciding factors in choosing advanced mobility options
Consumers now have more choices than ever before with regards to mobility, whether they are choosing a car to buy or lease or simply deciding how to get from point A to B. The plethora of choices brings an array of new decisions for consumers:

Ride-hailing irregularities: In 2017, 23 percent of U.S. consumers used ride-hailing at least once a week, and another 22 percent used it occasionally. Fast forward to the latest study, and the percentage of regular users cuts in half to 12 percent, while the proportion of occasional users increases twofold to 46 percent. Occasional ride-hailers follow a similar path in India and China, though both countries saw substantial growth in the volume of occasional ride-hailers, growing from 85 to 90 percent in India between 2017 and 2019; and 75 to 83 percent in China over the same period.

A generational divide: Younger consumers are more likely to question whether vehicle ownership is a necessity than older generations. Japan leads the pack, where 60 percent of Generations Y/Z say ride hailing makes them question whether they need to own a vehicle, followed by 53 percent for Gen X and 45 percent of Baby Boomers. In the U.S., the number is 46 percent for U.S. Gen Y/Z consumers, down 20 percentage points from 64 percent in 2017.

Convenience over savings: The majority (56 percent) of Americans are not interested in ridesharing services — such as professional micro-buses and other similar multi-rider options — and 47 percent of German consumers prefer to use their vehicles daily. Using multiple modes of transportation in one trip is largely an occasional undertaking in the U.S., where 39 percent of U.S. consumers report they never combine different modes in a single trip.

Along with new transportation options, connectivity has unlocked an array of new choices for consumers purchasing vehicles, many of whom are divided:

Top priorities: Interest in connected features such as traffic congestion tracking and road-safety alerts is universally high, with 75 percent and 71 percent of U.S. consumers seeking these features, respectively. This strongly aligns with what 43 percent of U.S. consumers say is the most important aspect of mobility: getting to their destination in the least amount of time.

Costs and benefits of connectivity: Less than half of surveyed U.S. consumers (47 percent) are sold on the idea of connectivity, but opinions vary globally. Twice as many people in China (79 percent) and India (76 percent) agree that increased connectivity will lead to substantial benefits than in Japan (36 percent) and Germany (35 percent).

Pros and cons of data collection and privacy: Connected-vehicle sensors can track everything from powertrain performance and operational statistics to geolocation information and occupant wellness. Roughly two-thirds (63 percent) of U.S. consumers are concerned about biometric data being captured via a connected vehicle and shared with external parties; 40 percent of people in China and Japan say the same.

Reluctance to pay more for options: Once consumers are sold on a feature, they are not necessarily sold on the price. One-third (33 percent) of U.S. consumers would be unwilling to pay more for a connected vehicle, and a slightly larger portion (42 percent) would only pay up to $500 more for this functionality. German consumers feel similarly, with 40 percent willing to pay €600 more (approximately US$680). While a higher share of Japanese consumers (72 percent) are willing to pay extra, their upper limit was only ¥50,000 (approximately US$450).

“Connected, electrified, and autonomous vehicles offer tremendous value for society, but consumers will be slow to adopt these advanced technologies at scale until there is clear and undisputed improvement in safety, cost, convenience, and superior customer experience from a trusted brand,” said Joe Vitale, Deloitte Touche Tohmatsu Limited and global automotive sector leader.

Who are consumers rooting for?
As consumers look ahead to the automotive future, they may not always associate emerging technology with traditional car manufacturers. In the U.S., the number of consumers who said they trust traditional original equipment manufacturers (OEMs) to bring AV technology to market continues to slip, falling from 47 percent in 2018 to 39 percent in 2019. Even in Germany, where trust in OEMs has traditionally been fairly solid, this proportion has dropped rapidly from 51 percent in 2017 to 33 percent in 2019.

With an ongoing lack of trust in the private sector, consumers are looking to governments to increase regulation. An overwhelming percentage of consumers in most countries indicated they wanted “significant oversight,” including 56 percent of U.S. consumers.

Hybrid electric vehicles still struggle for attention
People around the globe now see electrified powertrains as viable options, but electric vehicles (EVs) still face some bumps in the road ahead. In the U.S., 29 percent would prefer a nontraditional powertrain, up from 20 percent last year — including hybrid, battery or other alternative — for their next vehicle. A low fuel price environment coupled with relaxed emissions standards and fewer available rebates will likely keep EV adoption rates contained in the U.S. market.

Interest in Asian countries is far higher than that of the U.S. China is in the lead, where 65 percent of people surveyed would prefer an alternative powertrain in their next vehicle, followed by Japan (59 percent), Korea (43 percent) and India (39 percent).

Adoption of EVs will likely play out differently in other regions. Stronger policies to address pollution concerns and foreign oil reliance in China may encourage faster EV adoption, while European countries including Norway, Britain, France, and the Netherlands have announced plans to ban the sale of conventional gas- and diesel-fueled vehicles over the next two to three decades. While both regions may be poised for increased EV adoption, change will not be immediate. This is because traditional vehicles currently make up the bulk of cars on the road, and these cars boast a life expectancy of more than 10 years. In North America, adoption is likely to lag due to a low fuel-price environment, relaxed-emissions standards and a tighter tax-rebate policy.

About the Global Automotive Consumer Study
Deloitte recently surveyed over 25,000 consumers in September and October 2018 across 20 countries around the world to explore consumer preferences regarding a variety of critical issues impacting the automotive sector. The overall goal of the study is to answer important questions that can help companies prioritize and better position their business strategies and investments.

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Digital Child’s Play: protecting children from the impacts of AI

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UNICEF has developed policy guidance to protect children from the potential impacts of AI. UNICEF/ Diefaga

Artificial intelligence has been used in products targeting children for several years, but legislation protecting them from the potential impacts of the technology is still in its infancy. Ahead of a global forum on AI for children, UN News spoke to two UN Children’s Fund (UNICEF) experts about the need for improved policy protection.

Children are already interacting with AI technologies in many different ways: they are embedded in toys, virtual assistants, video games, and adaptive learning software. Their impact on children’s lives is profound, yet UNICEF found that, when it comes to AI policies and practices, children’s rights are an afterthought, at best.

In response, the UN children’s agency has developed draft Policy Guidance on AI for Children to promote children’s rights, and raise awareness of how AI systems can uphold or undermine these rights.

Conor Lennon from UN News asked Jasmina Byrne, Policy Chief at the UNICEF Global Insights team, and Steven Vosloo, a UNICEF data, research and policy specialist, about the importance of putting children at the centre of AI-related policies.
AI Technology will fundamentally change society.

Steven Vosloo At UNICEF we saw that AI was a very hot topic, and something that would fundamentally change society and the economy, particularly for the coming generations. But when we looked at national AI strategies, and corporate policies and guidelines, we realized that not enough attention was being paid to children, and to how AI impacts them. 

So, we began an extensive consultation process, speaking to experts around the world, and almost 250 children, in five countries. That process led to our draft guidance document and, after we released it, we invited governments, organizations and companies to pilot it. We’re developing case studies around the guidance, so that we can share the lessons learned.

Jasmina Byrne AI has been in development for many decades. It is neither harmful nor benevolent on its own. It’s the application of these technologies that makes them either beneficial or harmful.

There are many positive applications of AI that can be used in in education for personalized learning. It can be used in healthcare, language simulation and processing, and it is being used to support children with disabilities.

And we use it at UNICEF. For example, it helps us to predict the spread of disease, and improve poverty estimations. But there are also many risks that are associated with the use of AI technologies. 

Children interact with digital technologies all the time, but they’re not aware, and many adults are not aware, that many of the toys or platforms they use are powered by artificial intelligence. That’s why we felt that there has to be a special consideration given to children and because of their special vulnerabilities.

Privacy and the profit motive

Steven Vosloo The AI could be using natural language processing to understand words and instructions, and so it’s collecting a lot of data from that child, including intimate conversations, and that data is being stored in the cloud, often on commercial servers. So, there are privacy concerns.

We also know of instances where these types of toys were hacked, and they were banned in Germany, because they were considered to be safe enough.

Around a third of all online users are children. We often find that younger children are using social media platforms or video sharing platforms that weren’t designed with them in mind.

They are often designed for maximum engagement, and are built on a certain level of profiling based on data sets that may not represent children.

Predictive analytics and profiling are particularly relevant when dealing with children: AI may profile children in a way that puts them in a certain bucket, and this may determine what kind of educational opportunities they have in the future, or what benefits parents can access for children. So, the AI is not just impacting them today, but it could set their whole life course on a different direction.

Jasmina Byrne Last year this was big news in the UK. The Government used an algorithm to predict the final grades of high schoolers. And because the data that was input in the algorithms was skewed towards children from private schools, their results were really appalling, and they really discriminated against a lot of children who were from minority communities. So, they had to abandon that system. 

That’s just one example of how, if algorithms are based on data that is biased, it can actually have a really negative consequences for children.

‘It’s a digital life now’

Steven Vosloo We really hope that our recommendations will filter down to the people who are actually writing the code. The policy guidance has been aimed at a broad audience, from the governments and policymakers who are increasingly setting strategies and beginning to think about regulating AI, and the private sector that it often develops these AI systems.

We do see competing interests: the decisions around AI systems often have to balance a profit incentive versus an ethical one. What we advocate for is a commitment to responsible AI that comes from the top: not just at the level of the data scientist or software developer, from top management and senior government ministers.

Jasmina Byrne The data footprint that children leave by using digital technology is commercialized and used by third parties for their own profit and for their own gain. They’re often targeted by ads that are not really appropriate for them. This is something that we’ve been really closely following and monitoring.

However, I would say that there is now more political appetite to address these issues, and we are working to put get them on the agenda of policymakers.

Governments need to think and puts children at the centre of all their policy-making around frontier digital technologies. If we don’t think about them and their needs. Then we are really missing great opportunities.

Steven Vosloo The Scottish Government released their AI strategy in March and they officially adopted the UNICEF policy guidance on AI for children. And part of that was because the government as a whole has adopted the Convention on the Rights of the Child into law. Children’s lives are not really online or offline anymore. And it’s a digital life now.

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How digital technology and innovation can help protect the planet

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As a thick haze descended over New Delhi last month, air quality monitors across the Indian capital began to paint a grim picture.

The smoke, fed by the seasonal burning of crops in northern India, was causing levels of the toxic particle PM 2.5 to spike, a trend residents could track in real time on the Global Environment Monitoring System for Air (GEMS Air) website.

By early November, GEMS Air showed that concentrations of PM 2.5 outside New Delhi’s iconic India Gate were ‘hazardous’ to human health. In an industrial area north of the Indian capital, the air was 50 times more polluted.

GEMS Air is one of several new digital tools used by the United Nations Environment Programme (UNEP) to track the state of the environment in real time at the global, national and local levels. In the years to come, a digital ecosystem of data platforms will be crucial to helping the world understand and combat a host of environmental hazards, from air pollution to methane emissions, say experts.

“Various private and public sector actors are harnessing data and digital technologies to accelerate global environmental action and fundamentally disrupt business as usual,” says David Jensen, the coordinator of UNEP’s digital transformation task force.

“These partnerships warrant the attention of the international community as they can contribute to systemic change at an unprecedented speed and scale.”

The world is facing what United Nations Secretary-General António Guterres has called a triple planetary crisis of climate change, pollution and biodiversity loss. Experts say averting those catastrophes and achieving the Sustainable Development Goals will require fundamentally transforming the global economy within a decade. It’s a task that would normally take generations. But a range of data and digital technologies are sweeping the planet with the potential to promote major structural transformations that will enhance environmental sustainability, climate action, nature protection and pollution prevention.

A new age

UNEP is contributing to that charge through a new programme on Digital Transformation and by co-championing the Coalition for Digital Environmental Sustainability as part of the Secretary-General’s Digital Cooperation Roadmap.

UNEP studies show that for 68 per cent of the environment-related Sustainable Development Goal indicators, there is not enough data to assess progress. The digital initiatives leverage technology to halt the decline of the planet and accelerate sustainable finance, products, services, and lifestyles.

GEMS air was among the first of those programmes. Run by UNEP and Swiss technology company IQAir, it is the largest air pollution network in the world, covering some 5,000 cities. In 2020, over 50 million users accessed the platform and its data is being streamed into digital billboards to alert people about air quality risks in real time. In the future, the program aims to extend this capability directly into mobile phone health applications.

Building on lessons learned from GEMS Air, UNEP has developed three other lighthouse digital platforms to showcase the power of data and digital technologies, including cloud computing, earth observation and artificial intelligence.

Managing freshwater

One is the Freshwater Ecosystem Explorer, which provides a detailed look at the state of lakes and rivers in every country on Earth.

The fruit of a partnership between UNEP, the European Commission’s Joint Research Centre and Google Earth Engine, it provides free and open data on permanent and seasonal surface waters, reservoirs, wetlands and mangroves.

“It is presented in a policy-friendly way so that citizens and governments can easily assess what is actually happening to the world’s freshwater resources,” says Stuart Crane, a UNEP freshwater expert. “That helps countries track their progress towards the achievement of Sustainable Development Goal Target 6.6.”

Data can be visualized using geospatial maps with accompanying informational graphics and downloaded at national, sub-national and river basin scales. Data are updated annually and depict long-term trends as well as annual and monthly records on freshwater coverage.

Combating climate change

UNEP is also using data-driven decision making to drive deep reductions in methane emissions through the International Methane Emissions Observatory (IMEO). Methane is a potent greenhouse gas, responsible for at least a quarter of today’s global warming.

The observatory is designed to shine a light on the origins of methane emissions by collecting data from various sources, including satellites, ground-based sensors, corporate reporting and scientific studies.

The Global Methane Assessment published by UNEP and the Climate and Clean Air Coalition (CCAC) found that cutting human-caused methane by 45 per cent this decade would avoid nearly 0.3°C of global warming by the 2040s, and help prevent 255,000 premature deaths, 775,000 asthma-related hospital visits, and 26 million tonnes of crop losses globally.

“The International Methane Emissions Observatory supports partners and institutions working on methane emissions reduction to scale-up action to the levels needed to avoid the worst impacts of climate change,” says Manfredi Caltagirone, a UNEP methane emissions expert.

Through the Oil and Gas Methane Partnership 2.0, the methane observatory works with petroleum companies to improve the accuracy and transparency of methane emissions reporting. Current member companies report assets covering over 30 per cent of oil and gas production globally. It also works with the scientific community to fund studies that provide robust, publicly available data.

Preserving nature

UNEP is also backing the United Nations Biodiversity Lab 2.0, a free, open-source platform that features data and more than 400 maps highlighting the extent of nature, the effects of climate change, and the scale of human development. Such spatial data help decision-makers put nature at the heart of sustainable development by allowing them to visualize the natural systems that hold back natural disasters, store planet-warming gasses, like carbon dioxide, and provide food and water to billions.

More than 61 countries have accessed data on the UN Biodiversity Lab as part of their national reporting to the Convention on Biological Diversity, an international accord designed to safeguard wildlife and nature. Version 2.0 of the lab was launched in October 2021 as a partnership between UNDP, UNEP’s World Conservation Monitoring Centre, the Convention on Biodiversity Secretariat and Impact Observatory. 

All of UNEP’s digital platforms are being federated into UNEP’s World Environment Situation Room, a digital ecosystem of data and analytics allowing users to monitor progress against key environmental Sustainable Development Goals and multi-lateral agreements at the global, regional and national levels.

“The technical ability to measure global environmental change—almost in real time—is essential for effective decision making,” says Jensen.

“It will have game-changing implications if this data can be streamed into the algorithms and platforms of the digital economy, where it can prompt users to make the personal changes so necessary to preserving the natural world and achieving net zero.”

UNEP

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Housing needs, the Internet and cyberspace at the forefront in the UK and Italy

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Modern construction methods and smart technology can revolutionise the building process and the way we live.

Population growth and demographic changes have led to a global housing shortage. According to research carried out by the Heriot-Watt University National Housing Federation and by the Homeless Charity Crisis Organisation, the UK will face a shortage of four million housing units by the end of 2031. This means that approximately 340,000 new housing units will need to be built each year. The houses built shall meet the demands of home automation and increasing environmental constraints.

Traditional building technology is unlikely to meet this demand. It is relatively expensive and too slow in fulfilling the necessary procedures and complying with all rules and regulations. Furthermore, the quality and capabilities of traditional construction methods are also limited. The only solution is modular production based on the principles of factory automation. This solution uses cordless and battery-free controls and sensors to perfectly integrate with home automation.

Modular buildings are based on a combination of construction methods called Modern Method of Construction (MMC). They include the use of panelling systems and components, such as roof and floor boxes, precast concrete foundation components, prefabricated wiring, mechanical engineering composites and innovative technologies.

With the opening of several factories, the UK has started to use the MMC to build prefabricated and fully equipped houses in modular form, which can be loaded onto trucks for transport across the country. This type of on-site assembly enables the house to be completed in days rather than months, thus reducing costs significantly. Modular buildings have become popular in Europe. In Italy, a pioneering company is the RI Group of Trepuzzi (Lecce), which is also operating in the fields of logistics and services and building health care facilities, field hospitals and public offices, which are cost-effective and quick to construct.

The impact of modular construction is expected to be significant and factories producing up to five thousand houses per year could become the best builders in the sector.

The construction standards of these new technology houses are higher than those of traditional houses. Thanks to better insulation, the electricity bill could be only half that of a traditional house.

Modular houses have kitchens and bathrooms, and are equipped with power and lighting via power cables, which are also modular, and wireless controls, in addition to the increasingly important network and telecommunications infrastructure.

Structural and modular wiring are derived from commercial electrical and industrial installations to ensure efficient and minimal electrical installation work. As technology changes, this standard installation is adaptable and offers a high degree of flexibility.

Experience in industrial and commercial construction shows that traditional fixtures are labour-intensive, rather rigid and still expensive. In contrast, on-site prefabricated modular cabling and the IDC system combined with wireless controllers and sensors can be fully installed at low cost. These are proven technologies and are moving from commercial to domestic use scenarios.

With the help of CAD support for modular cabling, all power cables are laid in the ceiling or wall space. The installation of wireless energy harvesting equipment simplifies the installation process as no switches and duct installation are required. For the first electrical fixing through the wall, the cable takes less time because there is no need to coordinate the position of the switch with the wall bolts. The level of dependency of on-site installation activities has also been reduced. Sensors, switches and wireless energy harvesting controls can be installed anywhere in the building, even in hard-to-reach areas.

After installation, the principle of energy harvesting will be used. Switches and sensors are powered by the surrounding environment and there is no need to replace old batteries and other maintenance equipment. Moreover, this flexibility and this reliability enable the system to be expanded at any time.

The modular construction technology enables it to adapt to various types of houses and meet the needs of today’s life through flexible shapes and various exterior decorations. This is not exactly the same as the old prefabricated houses, “granted” in Italy to earthquake victims who have been waiting for years for a decent, civilised home.

By providing a range of traditional and modern exterior decorative panels, the roofline can also be customised to suit local customs and architecture.

Through the combination of innovative product technology and good design, the aim of the smart home is to provide security and comfort. The usual requirement is to place the light switch and dimmer (or potentiometer) in the most convenient place. Driven by the kinetic energy collected by the switch itself, they can be placed anywhere.

They do not require wiring, but can send wireless signals to the receiver inside or near lights or DIN-rail mounts (German Institute for Standardisation). In addition, there is no need to use batteries and no need to replace them. This saves all the inconvenience and environmental risks that can be caused by replacing batteries.

Since this type of equipment has reached a wide range of applications, lighting and home entertainment will choose battery-free products. Besides controlling brightness and colour, self-powered switches can also be used to control sound systems or blinds. A key application of the smart home is the switch that can turn off/on devices that do not use traditional electricity when leaving or coming back home.

Energy harvesting technology also supports other sensor-based applications. For example, self-powered sensors can be wirelessly connected to an intruder alarm. Furthermore, by installing light-activated touch sensors on windows, lighting and heating can be turned off when no one is at home.

Another source of energy is the temperature difference between the heating radiator and the surrounding environment. For example, this energy harvesting enables a self-powered heating valve to perform heating control via a room temperature controller according to specific conditions.

From factories to offices, from multifunctional buildings to smart homes, wireless energy harvesting technology has been tested in approximately one million buildings worldwide. Most sensors, switches and other self-powered energy-harvesting devices can communicate at a distance of up to 30 metres in a building and meet the EnOcean international wireless standard, which encrypts messages below 1 GHz by sending a short message.

There are also some self-powered devices that integrate EnOcean energy harvesting technology and can communicate directly with the lights via the well-known Bluetooth or Zigbee (wireless communication standard based on the IEEE 802.15.4 specification, maintained by the ZigBee Alliance). This makes it possible to use green, battery-free switches and solar sensors to flexibly control other applications, such as LED lights or speakers.

Now that wireless sensors for energy harvesting can frame data at home, it will be a huge step forward to aggregate information and perform useful analysis. They process data through the Internet of Things (IoT), which refers to the path in technological development whereby, through the Internet, potentially every object of everyday life can acquire its own identity in cyberspace. As mentioned above, the IoT is based on the idea of “smart” items which are interconnected to exchange the information they possess, collect and/or process.

It also uses Artificial Intelligence (AI) to keep track of living patterns and activities in modular homes. Energy analysis is an application that can currently help homeowners further reduce energy consumption through AI.

Looking to the future, the combination of the IoT and AI will bring many benefits. Geographical data, weather and climate information, as well as activities, water and energy consumption and other factors will be very useful for planners, building organisations, builders and landlords.

Perceived architecture represents the next generation of sustainable building systems. Smart buildings will soon be able to integrate the IoT devices on their own, as well as generate large amounts of information and use it to optimise buildings. This provides a whole new dimension to the service and to the business and home economics model.

This is particularly relevant for the ageing population, as these smart technologies can radically change the lifestyles of the elderly people and their families. They are expected to bring transformative benefits in terms of health and well-being.

The key elements of such a home include smart, non-invasive and safe and secure connections with friends, family members, general practitioners, nurses and health care professionals, involving the care of residents. Technology based on battery-free sensors connected to the IoT will help prevent accidents at home, resulting from kitchens utensils and overflowing toilets, etc., and keep up with residents’ interactions with healthcare professionals.

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