According to PWC, AI will add up to $15.7 trillion to the global economy by 2030. PWC expects AI to add 14% to the global GDP. According to Gartner’s report, Blockchain will add $3.1 trillion to the global economy by 2030. Mckinsey estimates the impact of IoT on the world economy to be around $11.1 trillion by 2025.
Blockchain, IoT, and Artificial Intelligence are some of the most trending technology topics right now. In this article, we will discuss how AI, Blockchain, and IoT technologies are expected to impact our lives and the global economy as a whole.
Blockchain, AI, and IoT Technology Trends to look-up
AI will enhance the capability of IoT
AI and IoT are powerful technologies individually, and their power multiplies when combined. We expect AIoT or Artificial Intelligence of Things to be the norm in the future.
Right now, IoT devices acquire and relay the data from their surroundings to a computer. The data is then processed and commands sent to the IoT sensors. In the future, AI will make the process faster. The concept of smart retail is a glimpse of the possibilities of AI and IoT.
A camera equipped with facial recognition AI can identify customers as they walk through the retail facility door. A smart AI can analyze data like
- Product preferences
- Traffic flow at a specific time
Such data analysis helps the management in predicting consumer behavior and use that information to make better decisions in areas like
- Store operations
- Product placement
- Marketing strategies
For example, if the AI system detects that most of the store’s customers are millennials, it could cater to in-store specials that appeal to the Millennials. Such a real-time strategy change will help in driving up sales.
Interesting reads: How IoT helps businesses to create a more integrated experience?
AI for Hyper-Automation
Hyper-automation or Robotic Process Automation (RPA) is an IT mega-trend identified by market research firm Gartner. The idea is to automate everything in an organization. The concept of hyper-automation has gained momentum after the pandemic.
AI and machine learning are the key drivers of Hyper Automation. AI helps the automated business processes adapt to the changing circumstances and swiftly respond to unexpected situations.
The following is a hyper-automation process flow visualization for a document-based process.
- An RPA bot collects an incoming document or email which contains semi-structured or unstructured data.
- The ML algorithm then extracts and validates the machine-readable data. For example, the ML can validate invoices for VAT compliance to avoid fraudulent invoices.
- If the ML model’s confidence is low, then we can include humans in the loop.
- Finally, this validated and enriched data is then sent to the next system, e.g., ERP.
Gartner has identified hyper-automation as a potential trend for 2021, and AI is an essential component of hyper-automation.
Personalized AI for Marketing
According to a survey, 7 out of 10 customers would prefer to do business with a brand that caters to personalized experiences. Even Mckinsey says that investing in personalization is good for business, as personalization helps brands attain 5-8 times more on marketing ROI.
AI makes the time-consuming task of personalization easy as it helps brands understand their customers and create personalized offers.
The Hilton Group of Hotels uses an AI concierge named Connie to greet its guests. Connie even recommends places to visit and restaurants to try, making the experience memorable. The robot is equipped with Natural Language Processing ability, which allows Connie to understand the guests better.
As brands collect more data about their customers, their ability to predict their next action will improve. AI is now a part of human life. Companies invest heavily in tools like Salesforce, Oracle, SAP, Twillo, Treasure Data, and ActionIQ to deliver more personalized experiences to their customers. In the future, we expect that more sophisticated AI tools will emerge that will allow marketers to build hyper-personalized experiences for their customers.
Blockchain adds immutability and integrity to IoT transactions
The combination of Blockchain and IoT is that of convenience and security. Blockchain-enabled private networks allow businesses to share and access IoT data securely. Blockchain facilitates a more transparent environment. Blockchain streamlines processes and creates new business value across the ecosystem by drawing on the data supplied by IoT devices and sensors.
Freight transportation is one area where the combination of Blockchain and IoT can prove its worth. Moving freight is a complex process that often involves managing the expectations of different parties having different priorities. Freight movement is a tense process where an IoT-enabled Blockchain system can help in reducing this tension. The system can store the position, arrival time, temperature, and shipping container status and relay the information in real-time to the concerned people. As Blockchain transactions are immutable, all parties can trust the data, making the process hassle-free.
CeDeFi – Centralized Decentralized Finance
CeDeFi will gain prominence in the future, striking a balance between centralized financial institutions and decentralized finance like Bitcoin. The centralized crypto exchange Binance has launched BSC(Binance Smart chain), aiming to help new DeFi projects enter the centralized finance system. BSC has many features like lending, borrowing, and staking, traditionally found only in DeFi systems. Binance has also introduced a crypto debit card called “Binance Card,” which acts as a bridge between DeFi and Centralized finance.
Experts expect that by the end of 2022, traditional centralized financial companies will integrate DeFi and produce blended CeDeFi offerings.
Continuous truth assessment for assessing compliance to the ESG goals
Adherence to Environmental, Social, and Governance goals is one of the critical criteria for investors today. Blockchain technology will play a significant role in assessing whether a company is following ESG goals.
Settlemint.com is a startup that works with Colruyt in Belgium to authenticate the farm label ‘bio’ for pig meat supplied by Colruyt. In Europe, the ‘bio’ means that the food follows the EU norms for organic farming. IoT sensors are attached to the pigs’ ears to ascertain their time eating food and the time they spend consuming sunlight.
Blockchain Technology for Social and Political Purposes
Trust and transparency are two issues that Blockchain addresses effectively. Hence Blockchain development can be used for handling various social problems like fake news. The New York Times R&D team created a solution that would record everything that happens to a photograph. The program would even display the information to social media users, allowing them to know whether the photo has been modified or not. The program uses a Blockchain ledger to provide a transparent record of every change made to the image.
The photo-proofing program is just one example of how Blockchain can reduce the misinformation spread on social media. As Blockchain use becomes widespread, we can expect more people to adopt the technology and apply it to solve the day’s social problems.
Central Bank Digital currencies
Around 40 countries are experimenting with the idea of digitizing their sovereign currency. China is the pack leader, and they have already launched the digital version of the Chinese Yuan. Although the Chinese Yuan isn’t based on Blockchain, it is expected that future digital currencies will have the Blockchain technology to prevent counterfeiting.
The massive growth of IoT in manufacturing and industries
IoT will help humans by giving them access to context-sensitive insights that answer specific questions. IoT may have started as a technology that was all about the sensors, but slowly we are moving to the point where it is possible to share insights and interactions with people. IoT is widely used to support machine operators and maintenance executives by providing them with real-time insights.
We are already seeing companies moving towards smart manuals where the users can ask a question and the AI answers.
Airbus has implemented a digital manufacturing initiative called, Factory of the Future. The idea is to help the assembly workers build a commercial jetliner easily and quickly using integrated sensors and wearable technology like smart glasses.
IoT Helping to Build Digital Twins
Digital twins are virtual replicas of physical objects. The designers can run simulations on digital twins to see how the physical object will perform in varying conditions.
The IoT technology can help to gather information in real-time. The technology also helps to optimize the information quickly, thus proving to be a perfect partner for developing digital twins for all applications. In areas like construction, engineering, and architecture, digital twin technology can help save cost and time.
Countries like Singapore are using digital twin technology to help city planners improve their energy efficiency.
Predictive Maintenance and IoT
Predictive maintenance is a technology that helps users assess any potential damage or problem through the various sensors that monitor the status of the devices. The sensors send data to AI-driven software that analyzes and predicts any malfunction before it occurs, thus allowing the factory management to reduce the devices’ downtime.
Sandvik, the cutting tool manufacturer, has built a predictive maintenance system that warns the engineers when tool bit maintenance is required. The engineering major ABB is another company that has started using IoT. ABB has developed a predictive maintenance solution that combines IoT, machine learning, and cloud computing to ensure that critical drives and motors keep running as planned.