Deloitte’s third edition of the “State of AI in the Enterprise” survey, conducted between Oct. and Dec. 2019, finds businesses are entering a new chapter in AI implementation where early adopters may have to work harder to preserve an edge over their industry peers. The study shows that companies at the top will be those that utilize AI to pursue creative and novel applications, actively address inherent AI risks and — as more organizations buy AI-powered capabilities — become smarter consumers of AI technology.
“Seasoned” adopters are the example to follow as the global survey of 2,737 information technology and line-of-business executives finds this category has undertaken many AI production deployments. They have also developed a high level of AI expertise across the board in selecting AI technologies and suppliers; identifying use cases for building and managing AI solutions; integrating AI into their IT environment and business processes; and hiring and managing AI technical staff.
Seasoned and skilled adopters evolve
Deloitte grouped responding organizations into three segments, based on the number of AI production deployments undertaken and how respondents rated their enterprise’s expertise across various measures.
Seasoned adopters are setting the pace in terms of AI adoption maturity. This category of adopters has grown since the last survey in 2018 from 21% to 26%.
Skilled adopters have generally launched multiple AI production systems but are not yet as AI-mature as the Seasoned organizations. This category of adopters has grown since the last survey from 43% to 47%.
Starters are just dipping their toes into AI adoption and have not yet developed solid proficiency in building, integrating and managing AI solutions. This category of adopters has declined since the last survey from 36% to 27%.
Becoming smarter consumers: Purchasing AI intelligently
As purchasing barriers have dropped and AI is more available, choosing the right technology is more important than ever. Those AI adopters surveyed tend to “buy” their capabilities rather than “build” them. To become smarter consumers, companies should evaluate the landscape, find the most advanced AI and integrate those technologies into their infrastructure. However, the survey found many adopters lack purchasing maturity:
- Only 47% of all adopters say that they have a high level of skill around selecting AI technologies and technology suppliers.
- Less than half (45%) say that they have a high level of skill around integrating AI technology into their existing IT environment.
Inventive approaches: Moving AI applications beyond IT and cyber security
It will likely take more creativity for organizations to differentiate themselves as AI becomes commonplace. For example, many companies are still using AI mostly in IT- and cybersecurity-related functions, which was also the case in Deloitte’s second edition of the survey. This year’s survey found:
- Forty-seven percent of respondents indicated that IT was one of the top two functions for which AI was primarily used.
- When asked to identify the top two benefits they were seeking from AI, respondents’ top choices were “making processes more efficient” and “enhancing existing products and services,” the same as the last survey.
- Top business functions for AI applications, such as marketing, human resources, legal and procurement ranked at the bottom of the list.
- However, there are signals that AI may be expanding as respondents rated “creating new products and services” as the third-highest overall AI benefit.
Despite strong enthusiasm for their AI efforts, the majority of adopters only feel somewhat prepared to address AI risks — from unintended bias to determining accountability — and not enough are implementing specific practices to address them. In fact, survey respondents rank managing AI-related risks as the top challenge for their AI initiatives. Adding to this trust concern, many adopters feel underprepared and that these risks may impede their AI efforts:
- More than half of adopters surveyed report “major” or “extreme” concerns about potential risks for their AI initiatives, while only four in 10 adopters rate their organization as “fully prepared” to address them.
- While cybersecurity remains the most worrisome AI risk for adopters, AI failures, misuse of personal data, and regulatory uncertainty are also top areas of concern.
- Fifty-six percent agree that their organization is slowing adoption of AI technologies because of the emerging risks, and the same proportion believe that negative public perceptions will slow or stop adoption of some AI technologies.
- Fifty-seven percent of adopters have “major” or “extreme” worries about how new and changing regulations could impact their AI initiatives.
Crypto Sustainability Coalition to Investigate Potential of Web3 Technologies in Fighting Climate Change
The World Economic Forum launched the Crypto Sustainability Coalition, which will investigate how web3 and blockchain tools can be leveraged to achieve positive climate action.
Web3, which includes technologies like blockchains, cryptocurrencies, and NFTs, has become a catch-all term for the vision of a new, better internet. Members of the coalition will explore the potential positive impacts these technologies can bring to environmental and social agendas.
The coalition launch is timely as there is an urgent need to support the decarbonization of cryptocurrency and ensuring the industry is part of the climate solution. Furthermore, there needs to be regulatory clarity that promotes web3 innovation, protects consumers, and improves financial inclusion.
“I am excited about the work we are expecting from the Crypto Sustainability Coalition. An important and unique aspect of web3 is that it uses technology to support and reward direct community engagement and action. This means we can coordinate the work of many individuals directly with one another, enabling collective action without centralized control – a powerful accelerator for grass roots action,” said Brynly Llyr, Head of Blockchain and Digital Assets, World Economic Forum.
The Crypto Sustainability Coalition is a public-private initiative hosted by the World Economic Forum and comprises 30 partners. It is convening working groups to tackle three specific issues:
- Energy usage – this working group will analyse the crypto industry’s consumption of energy and materials to build a clearer picture of its impacts on climate and nature.
- Web3’s potential for climate action – this working group will investigate ways in which web3 innovations could tackle challenges facing the low-carbon transition at the pace required to hit the Paris Agreement’s targets. For example, the decentralized nature of crypto-mining and its ability to operate at off-peak times may provide a new business model for utilities and investors looking to develop renewable energy microgrids.
- “On-chain” carbon credits – members of the coalition believe blockchain-based carbon credits could address current flaws in global carbon markets, including: the lack of transparency around carbon offsets for either providers or buyers; the failure of markets to remove carbon emissions at the scale and pace required; and the inability of millions of the world’s smallholder farmers, forest stewards and Indigenous communities to participate in or benefit from carbon credit markets.
The Crypto Sustainability Coalition will investigate, collate and highlight industry standards, best practices and examples of tangible action that attest to how web3 technologies can support communities most vulnerable to the impacts of climate change. The coalition’s wider aim is to foster a broad education campaign on what web3’s potential and capacity look like, to better inform governments on how they regulate these technologies and incentivize investment and research into their development.
The coalition’s partners include Accenture, Avalanche, Avatree, CC Token, Circle, Climate Collective, Crypto Council for Innovation, Emerge, Energy Web Foundation, eToro, EY, Flowcarbon, Heifer International, KlimaDAO, Lukka, NEAR Foundation, Nori, PlanetWatch, Plastiks, Rainforest Partnership, Recykal, ReSeed, Ripple, Solana, Stellar Development Foundation, STEWARD, Sustainable Bitcoin Standard, The Global Brain, Toucan Protocol, University of Lisbon, and Zero Labs.
The new coalition is part of the Crypto Impact and Sustainability Accelerator (CISA), a grant-funded initiative launched by the Forum in January 2022 with a mission to encourage a greater understanding of the environmental, social and governance (ESG) impacts of crypto technologies.
Quantum Technologies Can Help Tackle Climate, Hunger, Disease
Quantum technologies offer huge potential for finding solutions to complex global challenges. But the focus on cybersecurity risks, which are solvable if decision-makers act now, is obscuring their application to the threats of climate, hunger and disease.
Moreover, demand for experts is outpacing available talent and companies are struggling to recruit people in this increasingly competitive and strategic industry. The World Economic Forum’s State of Quantum Computing report and Transitioning to a Quantum-Secure Economy white paper show how business and government leaders can take action.
The report and the white paper draw on insights from global experts and decision-makers among the Forum’s Quantum Economy Network. As investments in quantum technologies by businesses and governments worldwide totalled $35.5 billion by 2022, they show that while private investment is growing rapidly and shifting from venture capital to initial public offerings, companies and organizations are facing a serious shortage of talent.
The only people trained in quantum technologies are highly academic and businesses are struggling to upskill and find qualified individuals with experience in business or engineering. This skills gap means quantum computers, which are based on harnessing the properties of quantum states, will miss the promise of solving vastly complex problems exponentially faster than traditional machines.
Although the technology is nascent, the report and the white paper show how leaders can act now to secure their digital infrastructure from potential quantum computing attacks in the future. Three specific domains of research and industry, with significant economic, environmental and societal opportunities, are highlighted:
- Atomic, sub-atomic and molecular simulation leading to possible breakthroughs in materials science and biology
- Optimization and risk management in complex systems
- Impacts on existing technology areas such as artificial intelligence, cybersecurity security and blockchain
Taken together, they show how businesses can assess quantum readiness and formulate a quantum strategy, build internal capabilities and align with top management and policy-makers on critical focus areas.
“Quantum computing is a fundamentally new way of computing and could dramatically recast our ability to tackle climate change, hunger and disease,” said Derek O’Halloran, Head of the Forum’s platform, Shaping the Future of Digital Economy and New Value Creation. “Its economic promise and potential to render common cryptographic technologies obsolete make it geopolitically strategic. But the knowledge gap and uncertainties that come with an emerging technology make it difficult for decision-makers to act. The report and the white paper aim to demystify quantum computing and give business executives and policy-makers worldwide informed opinion for fact-based decision-making.”
New EU cybersecurity rules ensure more secure hardware and software products
Commission has presented a proposal for a new Cyber Resilience Act to protect consumers and businesses from products with inadequate security features. A first ever EU-wide legislation of its kind, it introduces mandatory cybersecurity requirements for products with digital elements, throughout their whole lifecycle.
The Act, announced by President Ursula von der Leyen in September 2021 during her State of the European Union address, and building on the 2020 EU Cybersecurity Strategy and the 2020 EU Security Union Strategy, will ensure that digital products, such as wireless and wired products and software, are more secure for consumers across the EU: in addition to increasing the responsibility of manufacturers by obliging them to provide security support and software updates to address identified vulnerabilities, it will enable consumers to have sufficient information about the cybersecurity of the products they buy and use.
Margrethe Vestager, Executive Vice-President for a Europe Fit for the Digital Age, said: “We deserve to feel safe with the products we buy in the single market. Just as we can trust a toy or a fridge with a CE marking, the Cyber Resilience Act will ensure the connected objects and software we buy comply with strong cybersecurity safeguards. It will put the responsibility where it belongs, with those that place the products on the market.”
Margaritis Schinas, Vice-President for Promoting our European Way of Life, said: “The Cyber Resilience Act is our answer to modern security threats that are now omnipresent through our digital society. The EU has pioneered in creating a cybersecurity ecosystem through rules on critical infrastructure, cybersecurity preparedness and response, and the certification of cybersecurity products. Today, we are completing this ecosystem through an Act that brings security in everyone’s home, in all our businesses and in every product that is interconnected. Cybersecurity is a matter for society, no longer an industry affair.”
Thierry Breton, Commissioner for the Internal Market, said: “When it comes to cybersecurity, Europe is only as strong as its weakest link: be it a vulnerable Member State, or an unsafe product along the supply chain. Computers, phones, household appliances, virtual assistance devices, cars, toys… each and every one of these hundreds of million connected products is a potential entry point for a cyberattack. And yet, today most of the hardware and software products are not subject to any cyber security obligations. By introducing cybersecurity by design, the Cyber Resilience Act will help protect Europe’s economy and our collective security.”
With ransomware attacks hitting an organisation every 11 seconds around the globe and the estimated global annual cost of cybercrime reaching €5.5 trillion in 2021 (Joint Research Centre report (2020): “Cybersecurity – Our Digital Anchor, a European perspective”), ensuring a high level of cybersecurity and reducing vulnerabilities in digital products – one of the main avenues for successful attacks – is more important than ever. With the growth in smart and connected products, a cybersecurity incident in one product can have an impact on the entire supply chain, possibly leading to severe disruption of economic and social activities across the internal market, undermining security or even becoming life-threatening.
The measures proposed today are based on the New Legislative Framework for EU product legislation and will lay down:
(a) rules for the placing on the market of products with digital elements to ensure their cybersecurity;
(b) essential requirements for the design, development and production of products with digital elements, and obligations for economic operators in relation to these products;
(c) essential requirements for the vulnerability handling processes put in place by manufacturers to ensure the cybersecurity of products with digital elements during the whole life cycle, and obligations for economic operators in relation to these processes. Manufacturers will also have to report actively exploited vulnerabilities and incidents;
(d) rules on market surveillance and enforcement.
The new rules will rebalance responsibility towards manufacturers, who must ensure conformity with security requirements of products with digital elements that are made available on the EU market. As a result, they will benefit consumers and citizens, as well as businesses using digital products, by enhancing the transparency of the security properties and promoting trust in products with digital elements, as well as by ensuring better protection of their fundamental rights, such as privacy and data protection.
While other jurisdictions around the world look into addressing these issues, the Cyber Resilience Act is likely to become an international point of reference, beyond the EU’s internal market. EU standards based on the Cyber Resilience Act will facilitate its implementation and will be an asset for the EU cybersecurity industry in global markets.
The proposed regulation will apply to all products that are connected either directly or indirectly to another device or network. There are some exceptions for products, for which cybersecurity requirements are already set out in existing EU rules, for example on medical devices, aviation or cars.
It is now for the European Parliament and the Council to examine the draft Cyber Resilience Act. Once adopted, economic operators and Member States will have two years to adapt to the new requirements. An exception to this rule is the reporting obligation on manufacturers for actively exploited vulnerabilities and incidents, which would apply already one year from the date of entry into force, since they require fewer organisational adjustments than the other new obligations. The Commission will regularly review the Cyber Resilience Act and report on its functioning.
BJP’s ‘Akhand Bharat’ Dream is Not Only Problematic, Fascist Also
On 7th September, Assam Chief Minister (CM) Himanta Biswa Sarma made a very controversial remark about ‘integrating Bangladesh and Pakistan’....
Listening to Kazakhstan: Survey Spotlights Challenges Along with Optimism on Economic Prospects
The results of the “Listening to Kazakhstan” survey presented today reveal a challenging period for Kazakhstan’s economic and social outlook...
UN urges investment in clean, sustainable tourism
International tourism is showing strong signs of recovery, with tourist numbers rising to 57 per cent of pre-pandemic levels. On...
Hurricanes and cyclones bring misery to millions, as Ian makes landfall in the U.S.
Hurricane Ian caused devastation across western Cuba and increased its strength and size as it made landfall mid-afternoon local time...
Floods; A Challenge to Comprehensive National Security of Pakistan
Pakistan is encountering one of the major catastrophic occurrence in the present day history. The colossal floods, along with the...
U.S. Government Likely Perpetrated Biggest-Ever Catastrophic Global-Warming Event
On September 28th, the AP headlined “Record methane leak flows from damaged Baltic Sea pipelines” and reported that “Methane leaking...
Solar Mini Grids Could Power Half a Billion People by 2030 – if Action is Taken Now
Solar mini grids can provide high-quality uninterrupted electricity to nearly half a billion people in unpowered or underserved communities and...
Economy2 days ago
How America Is Crushing Europe
Green Planet4 days ago
A Healthy Environment is Now a Universal Human Right: But What Does the Recognition Mean?
Economy3 days ago
The Historic Day of Euro’s Downfall
Central Asia4 days ago
Shanghai Cooperation Organization Summit and Later Developments: The Politics Analyzed
South Asia3 days ago
Changing Regional Security Paradigm: A Challenge to Kashmir and Options for Pakistan
Middle East4 days ago
Public opinion surveys challenge the image Arab leaders like to project
Intelligence3 days ago
Pakistani Intelligence Agencies ignite Tribal Conflicts in Pak-Afghan Region
Southeast Asia3 days ago
The so-called Indonesia-South Korea Special Strategic Partnership