We asked our 2020 intake of Technology Pioneers for their views on how technology will change the world in the next five years.
From quantum computers and 5G in action to managing cancer chronically, here are their predictions for our near-term future.
1. AI-optimized manufacturing
Paper and pencil tracking, luck, significant global travel and opaque supply chains are part of today’s status quo, resulting in large amounts of wasted energy, materials and time. Accelerated in part by the long-term shutdown of international and regional travel by COVID-19, companies that design and build products will rapidly adopt cloud-based technologies to aggregate, intelligently transform, and contextually present product and process data from manufacturing lines throughout their supply chains. By 2025, this ubiquitous stream of data and the intelligent algorithms crunching it will enable manufacturing lines to continuously optimize towards higher levels of output and product quality – reducing overall waste in manufacturing by up to 50%. As a result, we will enjoy higher quality products, produced faster, at lower cost to our pocketbooks and the environment.
In 2025, carbon footprints will be viewed as socially unacceptable, much like drink driving is today. The COVID-19 pandemic will have focused the public’s attention on the need to take action to deal with threats to our way of life, our health and our future. Public attention will drive government policy and behavioural changes, with carbon footprints becoming a subject of worldwide scrutiny. Individuals, companies and countries will seek the quickest and most affordable ways to achieve net-zero – the elimination of their carbon footprint. The creation of a sustainable, net-zero future will be built through a far-reaching energy transformation that significantly reduces the world’s carbon emissions, and through the emergence of a massive carbon management industry that captures, utilizes and eliminates carbon dioxide. We’ll see a diversity of new technologies aimed at both reducing and removing the world’s emissions – unleashing a wave of innovation to compare with the industrial and digital Revolutions of the past.
By 2025, quantum computing will have outgrown its infancy, and a first generation of commercial devices will be able tackle meaningful, real-world problems. One major application of this new kind of computer will be the simulation of complex chemical reactions, a powerful tool that opens up new avenues in drug development. Quantum chemistry calculations will also aid the design of novel materials with desired properties, for instance better catalysts for the automotive industry that curb emissions and help fight climate change. Right now, the development of pharmaceuticals and performance materials relies massively on trial and error, which means it is an iterative, time-consuming and terribly expensive process. Quantum computers may soon be able to change this. They will significantly shorten product development cycles and reduce the costs for R&D.
4. Healthcare paradigm shift to prevention through diet
By 2025, healthcare systems will adopt more preventative health approaches based on the developing science behind the health benefits of plant-rich, nutrient-dense diets. This trend will be enabled by AI-powered and systems biology-based technology that exponentially grows our knowledge of the role of specific dietary phytonutrients in specific human health and functional outcomes. After the pandemic of 2020, consumers will be more aware of the importance of their underlying health and will increasingly demand healthier food to help support their natural defences. Armed with a much deeper understanding of nutrition, the global food industry can respond by offering a broader range of product options to support optimal health outcomes. The healthcare industry can respond by promoting earth’s plant intelligence for more resilient lives and to incentivize people to take care of themselves in an effort to reduce unsustainable costs.
5. 5G will enhance the global economy and save lives
Overnight, we’ve experienced a sharp increase in delivery services with a need for “day-of” goods from providers like Amazon and Instacart – but it has been limited. With 5G networks in place, tied directly into autonomous bots, goods would be delivered safely within hours.
Wifi can’t scale to meet higher capacity demands. Sheltering-in-place has moved businesses and classrooms to video conferencing, highlighting poor-quality networks. Low latency 5G networks would resolve this lack of network reliability and even allow for more high-capacity services like telehealth, telesurgery and ER services. Businesses can offset the high cost of mobility with economy-boosting activities including smart factories, real-time monitoring, and content-intensive, real-time edge-compute services. 5G private networks make this possible and changes the mobile services economy.
The roll-out of 5G creates markets that we only imagine – like self-driving bots, along with a mobility-as-a-service economy – and others we can’t imagine, enabling next generations to invent thriving markets and prosperous causes.
Technology drives data, data catalyzes knowledge, and knowledge enables empowerment. In tomorrow’s world, cancer will be managed like any chronic health condition —we will be able to precisely identify what we may be facing and be empowered to overcome it.
In other words, a new normal will emerge in how we can manage cancer. We will see more early and proactive screening with improved diagnostics innovation, such as in better genome sequencing technology or in liquid biopsy, that promises higher ease of testing, higher accuracy and ideally at an affordable cost. Early detection and intervention in common cancer types will not only save lives but reduce the financial and emotional burden of late discovery.
We will also see a revolution in treatment propelled by technology. Gene editing and immunotherapy that bring fewer side effects will have made greater headway. With advances in early screening and treatment going hand in hand, cancer will no longer be the cursed ‘C’ word that inspires such fear among people.
Historically, robotics has turned around many industries, while a few select sectors – such as grocery retail – have remained largely untouched . With the use of a new robotics application called ‘microfulfillment’, Grocery retailing will no longer look the same. The use of robotics downstream at a ‘hyper local’ level (as opposed to the traditional upstream application in the supply chain) will disrupt this 100-year-old, $5 trillion industry and all its stakeholders will experience significant change. Retailers will operate at a higher order of magnitude on productivity, which will in turn result in positive and enticing returns in the online grocery business (unheard of at the moment). This technology also unlocks broader access to food and a better customer proposition to consumers at large: speed, product availability and cost. Microfulfillment centers are located in existing (and typically less productive) real estate at the store level and can operate 5-10% more cheaply than a brick and mortar store. We predict that value will be equally captured by retailers and consumers as online.
One thing the current pandemic has shown us is how important technology is for maintaining and facilitating communication – not simply for work purposes, but for building real emotional connections. In the next few years we can expect to see this progress accelerate, with AI technology built to connect people at a human level and drive them closer to each other, even when physically they’re apart. The line between physical space and virtual will forever be blurred. We’ll start to see capabilities for global events – from SXSW to the Glastonbury Festival – to provide fully digitalized alternatives, beyond simple live streaming into full experiences. However, it’s not as simple as just providing these services – data privacy will have to be prioritised in order to create confidence among consumers. At the beginning of the COVID-19 pandemic we saw a lot in the news about concerns over the security of video conferencing companies. These concerns aren’t going anywhere and as digital connectivity increases, brands simply can’t afford to give users anything less than full transparency and control over their data.
9. Putting individuals – not institutions – at the heart of healthcare
By 2025, the lines separating culture, information technology and health will be blurred. Engineering biology, machine learning and the sharing economy will establish a framework for decentralising the healthcare continuum, moving it from institutions to the individual. Propelling this forward are advances in artificial intelligence and new supply chain delivery mechanisms, which require the real-time biological data that engineering biology will deliver as simple, low-cost diagnostic tests to individuals in every corner of the globe. As a result, morbidity, mortality and costs will decrease in acute conditions, such as infectious diseases, because only the most severe cases will need additional care. Fewer infected people will leave their homes, dramatically altering disease epidemiology while decreasing the burden on healthcare systems. A corresponding decrease in costs and increase in the quality of care follows, as inexpensive diagnostics move expenses and power to the individual, simultaneously increasing the cost-efficiency of care. Inextricable links between health, socio-economic status and quality of life will begin to loosen, and tensions that exist by equating health with access to healthcare institutions will dissipate. From daily care to pandemics, these converging technologies will alter economic and social factors to relieve many pressures on the global human condition.
Construction will become a synchronized sequence of manufacturing processes, delivering control, change and production at scale. It will be a safer, faster and more cost-effective way to build the homes, offices, factories and other structures we need to thrive in cities and beyond. As rich datasets are created across the construction industry through the internet of things, AI and image capture, to name a few, this vision is already coming to life. Using data to deeply understand industry processes is profoundly enhancing the ability of field professionals to trust their instincts in real-time decision making, enabling learning and progress while gaining trust and adoption.
Actionable data sheds light where we could not see before, empowering leaders to manage projects proactively rather than reactively. Precision in planning and execution enables construction professionals to control the environment, instead of it controlling them, and creates repeatable processes that are easier to control, automate, and teach.
That’s the future of construction. And it’s already begun.
11. Gigaton-scale CO2 removal will help to reverse climate change
A scale up of negative emission technologies, such as carbon dioxide removal, will remove climate-relevant amounts of CO2 from the air. This will be necessary in order to limit global warming to 1.5°C. While humanity will do everything possible to stop emitting more carbon into the atmosphere, it will also do everything it can in order to remove historic CO2 from the air permanently. By becoming widely accessible, the demand for CO2 removal will increase and costs will fall. CO2 removal will be scaled up to the gigaton-level, and will become the responsible option for removing unavoidable emissions from the air. It will empower individuals to have a direct and climate-positive impact on the level of CO2 in the atmosphere. It will ultimately help to prevent global warming from reaching dangerous levels and give humanity the potential to reverse climate change.
Jan Wurzbacher, Co-Founder and co-CEO of Climeworks
12. A new era in medicine
Medicine has always been on a quest to gather more knowledge and understanding of human biology for better clinical decision-making. AI is that new tool that will enable us to extract more insights at an unprecedented level from all the medical ‘big data’ that has never really been fully taken advantage of in the past. It will shift the world of medicine and how it is practiced.
Improvements in AI will finally put access to wealth creation within reach of the masses. Financial advisors, who are knowledge workers, have been the mainstay of wealth management: using customized strategies to grow a small nest egg into a larger one. Since knowledge workers are expensive, access to wealth management has often meant you already need to be wealthy to preserve and grow your wealth. As a result, historically, wealth management has been out of reach of those who needed it most. Artificial intelligence is improving at such a speed that the strategies employed by these financial advisors will be accessible via technology, and therefore affordable for the masses. Just like you don’t need to know how near-field communication works to use ApplePay, tens of millions of people won’t have to know modern portfolio theory to be able to have their money work for them.
14. A clean energy revolution supported by digital twins
Over the next five years, the energy transition will reach a tipping point. The cost of new-build renewable energy will be lower than the marginal cost of fossil fuels. A global innovation ecosystem will have provided an environment in which problems can be addressed collectively, and allowed for the deployment of innovation to be scaled rapidly. As a result, we will have seen an astounding increase in offshore wind capacity. We will have achieved this through an unwavering commitment to digitalization, which will have gathered a pace that aligns with Moore’s law to mirror solar’s innovation curve. The rapid development of digital twins – virtual replicas of physical devices – will support a systems-level transformation of the energy sector. The scientific machine learning that combines physics-based models with big data will lead to leaner designs, lower operating costs and ultimately clean, affordable energy for all. The ability to monitor structural health in real-time and fix things before they break will result in safer, more resilient infrastructure and everything from wind farms to bridges and unmanned aerial vehicles being protected by a real-time digital twin.
15. Understanding the microscopic secrets hidden on surfaces
Every surface on Earth carries hidden information that will prove essential for avoiding pandemic-related crises, both now and in the future. The built environment, where humans spend 90% of their lives, is laden with naturally occurring microbiomes comprised of bacterial, fungal and viral ecosystems. Technology that accelerates our ability to rapidly sample, digitalize and interpret microbiome data will transform our understanding of how pathogens spread. Exposing this invisible microbiome data layer will identify genetic signatures that can predict when and where people and groups are shedding pathogens, which surfaces and environments present the highest transmission risk, and how these risks are impacted by our actions and change over time. We are just scratching the surface of what microbiome data insights offer and will see this accelerate over the next five years. These insights will not only help us avoid and respond to pandemics, but will influence how we design, operate and clean environments like buildings, cars, subways and planes, in addition to how we support economic activity without sacrificing public health.
16. Machine learning and AI expedite decarbonization in carbon-heavy industries
Over the next five years, carbon-heavy industries will use machine learning and AI technology to dramatically reduce their carbon footprint. Traditionally, industries like manufacturing and oil and gas have been slow to implement decarbonization efforts as they struggle to maintain productivity and profitability while doing so. However, climate change, as well as regulatory pressure and market volatility, are pushing these industries to adjust. For example, oil and gas and industrial manufacturing organizations are feeling the pinch of regulators, who want them to significantly reduce CO2 emissions within the next few years. Technology-enabled initiatives were vital to boosting decarbonizing efforts in sectors like transportation and buildings – and heavy industries will follow a similar approach. Indeed, as a result of increasing digital transformation, carbon-heavy sectors will be able to utilize advanced technologies, like AI and machine learning, using real-time, high-fidelity data from billions of connected devices to efficiently and proactively reduce harmful emissions and decrease carbon footprints.
Despite the accelerating regulatory environments we’ve seen surface in recent years, we are now just seeing the tip of the privacy iceberg, both from a regulatory and consumer standpoint. Five years from now, privacy and data-centric security will have reached commodity status – and the ability for consumers to protect and control sensitive data assets will be viewed as the rule rather than the exception. As awareness and understanding continue to build, so will the prevalence of privacy preserving and enhancing capabilities, namely privacy-enhancing technologies (PET). By 2025, PET as a technology category will become mainstream. They will be a foundational element of enterprise privacy and security strategies rather than an added-on component integrated only meet a minimum compliance threshold. While the world will still lack a global privacy standard, organizations will embrace a data-centric approach to security that provides the flexibility necessary to adapt to regional regulations and consumer expectations. These efforts will be led by cross-functional teams representing the data, privacy and security interests within an organization.
How will technology change the world in the next five years?
It is very exciting to see the pace and transformative potential of today’s innovative technologies being applied to solve the world’s most pressing problems, such as feeding a global and growing population; improving access to and quality of healthcare; and significantly reducing carbon emissions to arrest the negative effects of climate change. The next five years will see profound improvements in addressing these challenges as entrepreneurs, the investment community and the world’s largest enterprise R&D organizations focus on developing and deploying solutions that will deliver tangible results.
While the COVID-19 pandemic has provided a difficult lesson in just how susceptible our world is today to human and economic turmoil, it has also – perhaps for the first time in history – necessitated global collaboration, data transparency and speed at the highest levels of government in order to minimize an immediate threat to human life. History will be our judge, but despite the heroic resolve and resiliency on a country by country basis, as a world we have underperformed. As a global community and through platforms like the World Economic Forum, we must continue to bring visibility to these issues while recognizing and supporting the opportunities for technology and innovation that can best and most rapidly address them.
Around 3,300 years ago, the port city of Ugarit was a vibrant urban centre, located strategically on the overland network linking Egypt with Asia Minor and on the route between Persia and India in the east and Greece and Cyprus in the west. The city’s origins date back to 3000BC and the first alphabet and alphabetic writing system are believed to have developed there in the 14th century BC.
Today Ugarit is a Bronze Age archaeological site in northwest Syria, first excavated in 1929. It can tell us a huge amount about the past, but Ugarit is also a place in its own right. The conservation of the site needs to help us understand the site’s history, as well as preserving and restoring what remains. Our work on virtual reality and reconstruction can meet both these goals.
Although only 30% of Ugarit has been excavated, the discovered areas give clues about the organisation of the city. The buildings include royal palaces, large houses, tombs, sanctuaries, public buildings and temples. Ugarit’s golden age was between the 14th and 12th century BC, and the excavated ruins show that interesting political, social and economic evolution took place in the city.
The royal area shows evidence of a developed political system, with complex defensive architecture and a well-structured palace. Domestic areas reveal important information about the Ugaritic people’s everyday life and their veneration of the dead. However, the structures are in a ruined condition and some are deteriorating, thanks to being exposed for more than 90 years with only minimal maintenance and repair work.
A shift toward using virtual technologies as preservation methods to document historic sites and provide educational opportunities has taken place in recent years. This prevents misguided architectural conservation, which can damage a site.
Augmented reality can project reconstructions onto archaeological ruins, such as at the medieval village of Ename in Belgium. Elsewhere, virtual reconstruction has produced 3D textured models, including of the “Sala dello Scrutinio” at the Doges’ Palace in Venice.
We have used computer-aided design modelling to test out conservation options for Ugarit and to investigate the effects of possible conservation interventions on the ruins. This led to changes in design concepts and materials to better fit the aims of the conservation.
Preserving a sacred route
Excavations have revealed a key sacred route that linked the Royal Palace with the main Temple of Baal and passed through public areas of Ugarit. Researchers believe that the king followed this sacred path to practice cult sacrifices at the temple.
The route contains important tangible elements, such as the remains of the palace, houses, and the temple, for example. But the conservation strategy also intends to reconstruct the intangible aspects of the route – the monumental fortifications, the scale of the temple, and the experience of walking the sacred path, all of which cannot be easily grasped from the remaining ruins.
Virtual reconstruction is an effective tool to assess these proposals and judge their ability to protect the ruins, as well as revealing intangible aspects, such as the atmosphere of a street, which are lost to time. We have developed virtual tours which create an opportunity for screen displays to be installed on the site before the actual proposal is implemented.
These virtual tours include an area of the site that historically featured a plaza and tavern. Here the conservation approach includes the creation of a social and entertaining hub. This will allow the urban environment of the plaza and the dim and cosy interior of the tavern to be restored.
The tours provide reliable evidence for the second stage of the conservation proposal, the design stage and community consultation. However, the political situation in Syria has put the consultation process on hold.
This political situation also means that it is not possible to visit Ugarit at the moment – a position shared by hundreds of archaeological sites around the world. So the virtual reconstructions serve another purpose: they allow those interested a glimpse of this fascinating city and provide an opportunity to raise awareness of the site’s cultural importance with an international audience.
Approximately half of all jobs will be materially impacted by automation in the next 15-20 years, said professional services firm Accenture in a new report.
Meanwhile, 79 per cent of executives agree that work is shifting from roles to projects—challenging both the function and makeup of the workforce as we know it, said Tanushree Guha, managing director of Applied Intelligence and global lead for the Workforce Analytics practice at Accenture in the report titled “OCED Employment Outlook 2019: The Future of Work”.
As more and more employees look for different opportunities, many are not choosing permanent jobs. In 2018 alone, 56.7 million Americans freelanced, and it is predicted that by 2027, the majority of America’s workers will be freelance. Those choosing part-time work or even working for multiple employers at one time will need to be factored into evolving workforce models, says Guha.
“Advances in digital and automation have allowed organizations to gain efficiency and increase productivity. But adopting these technologies means that organizations must plan for their workforce—especially those at risk of being made redundant,” the report said.
As many as 40 percent of companies are already reporting that talent shortages are impacting their ability to adapt and innovate and this highlights the need for organizations to upskill, reskill and cross-skill existing workers, it added.
A new approach to workforce management
Strategic workforce planning (SWFP) helps organizations strike the right balance between external contractors and internal workforce, as well as the right blend of human and machine effort to drive the business forward.
By providing a holistic perspective of the current workforce, and existing as well as future gaps, workforce planning can help organizations assess forthcoming risks and identify quick wins to yield potential savings. This enables organizations to strategize their recruitment and reskilling plans well in advance, as well as ascertain the most advantageous size and workforce mix of the organization both in the short and long term, the article said.
For example, using HR transformation analytics, organizations are turning recruitment from what was traditionally often a process based on “gut-feel,” to one informed and backed by advanced data insights. This transformation enables businesses to find the right people at the right time with the most relevant skills from a larger pool of applicants, whilst saving on time and money.
According to Guha, SWFP helps companies to be in a future-ready state, by enabling them to:
• Have a good hold of the current workforce scenario • Be well informed of possible future workforce gaps, facilitating them to strategize gap fulfilment and avoid the probable revenue losses due to those gaps • Devise a comprehensive action plan on efficiently utilizing the various workforce types to drive maximum productivity • Be well aware of the overtime changes in workforce dynamics and reasons for those changes • Design and implement optimal reskilling strategies in line with the changing requirements, at the same time as providing optimal career pathways to their workforce. – TradeArabia News Service
At this year’s Light+Building trade fair, Siemens will showcase its vision for transforming today’s passive buildings into learning and adaptive environments that intelligently interact with people. The company’s focus at this year’s show is “Building the future today”, outlining the innovations that will make this possible. These include cloud-based technologies, digital planning, occupant-centric building automation and services. New solutions for smart electrical infrastructure that seamlessly connects to the Internet of Things (IoT) are also at the core of this transformation.
„Building the future today”: Siemens at Light+Building 2020 in hall 11, booth B56“Around 99 percent of today’s buildings are not smart. Digitalization has the power to transform buildings from silent and passive structures into living organisms that interact, learn from and adapt to the changing needs of occupants. This is a significant leap in the evolution of buildings where our technology plays a vital role,” said Cedrik Neike, Member of the Managing Board of Siemens AG and Chief Executive Officer of Siemens Smart Infrastructure. “This transformation is already becoming a reality. We expect to see the first entirely self-adaptive buildings in three to five years from now.”
Digital solutions for the entire building lifecycle
Globalization, urbanization, climate change, and demographics are changing the way people live and work. At the same time, digitalization is ubiquitous. With some 10 billion building devices already connected to the IoT, buildings are ready to leverage the potential of digitalization. People spend an estimated 90 percent of their lives indoors, so ensuring buildings meet the broad range of individuals’ needs is crucial. On one hand, smart buildings actively contribute to occupants’ enhanced productivity, wellbeing and comfort. For operators and owners, they help them collect and analyze data to create actionable insights, boosting buildings’ performance and therefore revenue.Siemens will showcase the smart buildings suite of IoT enabled devices, applications and services. At the core of the suite is the “Building Twin” application, which will be on display at the booth. It provides a fully digital representation of a physical building, merging static as well as dynamic data from multiple sources into a 3D virtual model. With real-time understanding of how a building is performing, operators can immediately make adjustments to boost efficiency as well as extract data to improve the design of future buildings. One of the new IoT-enabled applications is “Building Operator”, which allows remote monitoring, operation and maintenance of buildings. Available as Software as a Service (SaaS), it provides real-time building data as the basis for predictive and corrective maintenance.
Smart electrical infrastructure
Given that buildings account for more than 40 percent of electricity consumption in cities, building efficiency is crucial in the battle towards decarbonization. Electrical infrastructure lays the foundation for safe, reliable and efficient building operations, while delivering essential data for a holistic, cloud-based building management. This is made possible by communication-capable low-voltage products, power distribution boards and busbar trunking systems that enable the measurement and wireless transmission of energy and status data. To illustrate this, Siemens will exhibit a unique end-to-end solution for cloud-based power monitoring in buildings. Electrical installations can now be supplemented with digital metering without additional space requirements or wiring outlay. This makes it easy for electrical installers to start using digitalization to their benefit. With “Powermanager”, a power monitoring software, now fully integrated into the Desigo CC building management platform, all building and energy data can be managed, monitored and analyzed from one single platform.Siemens will also display its electromobility ecosystem, including battery storage and charging systems for residential buildings. In a parallel show, “Intersec Building 2020”, in hall 9.1, booth B50, the company will exhibit integrated and networked systems for safety and fire protection.
For many publishers in the Middle East region, Nabd – the largest personalized Arabic news aggregator – has become the number one source of referrals to their portals, exceeding Social Media networks, as a traffic source.
“In BBC Arabic, we consider our partnership with Nabd to be the most valuable and important of all our digital partnerships. This reflects the growing importance of news aggregators and the position of Nabd as a market leader. Our partnership with Nabd has enabled us to widen our reach and gain a new perspective of our audience needs”, says Mohamed Yehia, Head of daily output at BBC.
In its efforts to support its partners, the local, regional and international publishers, Nabd has launched a dedicated portal for publishers, enabling them to obtain and analyze detailed insights about their content, engagement, and users in Nabd.
“NABD is one of the top sources of traffic for RT Arabic. During the last 3 months NABD replaced Twitter as the second-best source of traffic from social media to the website”, says Maya Manna, Editor-in-Chief at RT Arabic.
Today, Nabd is considered by over 1,000 premium Arabic publishers, as a corner stone in their content distribution strategy, since it enables them to reach and tap into a massive audience, and continuously engage with them.
“We extremely value and enjoy our strategic partnerships with publisher partners. Such partnerships have empowered us to achieve our mission of supporting quality journalism in our region, and delivering relevant premium Arabic content for the Arabic audience globally”, says Mazen Singer, Chief Strategy Officer at Nabd.
Nabd is a Personalized Arabic Content Reader, enabling Arab users across the globe to stay up-to-date with their favorite topics on the go. Today, Nabd reaches over 20 million users, generating over 1.6 billion page views every quarter, making it the biggest Arabic app globally. It is currently available for iPhone, iPad, and Android devices.
The future of real estate development is digital, with demand for cost-effective, innovative and sustainable buildings inspiring data-led business models that will fuel the growth of the Middle East construction industry, say, industry experts. So is Digital innovation ‘key to ME construction sector’?
“Innovation and sustainability in construction, specifically in connection with new digital solutions, are driving the future of real estate in the Middle East,” said Dierk Mutschler, CEO, Drees & Sommer, a leading construction and real estate consultancy.
“A gentle slowdown in some regional markets coupled with the emergence of new technology and business models will pave the way for forward-thinking companies to capitalise on these shifts. From 2020, the increasingly competitive environment will result in more demand for quality products, leading to a longer-term focus on investment in sustainable business models.
“After all, future business models, products and services will be measured not only by their economic success, but by their impact on our environment,” asserted Mutschler.
“Old business models will become obsolete,” he continued. “Real estate developers and contractors will need to truly understand data and what digitisation means for the construction industry. They will need to design and construct buildings with the capacity to adapt to new technology and future needs for the next 50 to 80 years.
“Ultimately, digitisation means ‘software’. If smart buildings are in danger of becoming outdated, a software update can make them state-of-the-art again. In our Drees & Sommer innovation laboratories, we are researching the use of regenerative technology, which will help ensure buildings are adaptable and future-proof– offering significant cost-saving benefits too,” said Mutschler.
He cited the findings of the KPMG Global Construction Survey, which forecasts six to 10 percent growth in the UAE’s construction sector in 2020 and Global Construction 2020, a report from PricewaterhouseCoopers, Global Construction Perspectives and Oxford Economics, which forecasts $4.3 trillion will be spent on construction in the Middle East and North Africa region over the next decade, as indicative of the positive outlook for the sector.
With regard to the UAE specifically, Stephan Degenhart, associate partner and managing director of Drees & Sommer Middle East, said the current focus lies in the delivery and completion of ongoing projects in anticipation of Expo Dubai 2020, which will attract 25 million visits during its six-month duration.
Following this, he predicted development would focus on delivering the ambitious roadmap of Smart Dubai 2021, which aims to make Dubai the happiest city on earth by embracing technology innovation for a seamless, efficient, safe and personalised city experience.
Degenhart commented: “The opportunities for growth lie within these shifts and changes. We predict that buildings will be completely reimagined and investors will need to consider how their business models will serve the new demands of end users. Existing buildings will also need extensive repositioning and revitalisation in order to compete in the digitised environment of the future.”
There are a host of smart technology solutions already available, from 3D laser scanning and digital modular fabrication to intelligent construction equipment and BIM models for design and construction, not to mention the use of IoT systems, robotics and data-driven business models for operation. Challenges lie in achieving the successful integration or networking of multiple systems from different technology providers and critically, according to Degenhart, in realising a change in mindset.
“Digital solutions have the power to dramatically impact the way we plan, construct and operate buildings. According to recent research by McKinsey & Company, adopting digital solutions throughout every phase of the construction process could increase market productivity by as much as 15 per cent and reduce project costs by up to 45 per cent,” Degenhart said.
“At Drees & Sommer, we are looking forward to working with developers and investors seeking to expand or enhance their portfolio in 2020, as well as supporting those new to the region. Our goal is to deliver cost-effective and sustainable buildings, profitable real estate portfolios, people-oriented working environments, visionary mobility concepts and liveable cities,” concluded Degenhart.
Digital adoption key to cope with growth of mega cities or as put by Fida Kibbi: “As we continue to advance towards a more urbanized world and the impacts of climate change grow progressively, there is a greater need to accelerate digital adoption in line with the Sustainable Development Goals (SDGs).”
The number of megacities is forecast to increase to 43, each with more than 10 million inhabitants by 2030, said an industry expert, citing a report by the United Nations Department of Economic and Social Affairs.
More than half of the world’s population will live in urban areas by 2050, the report said.
“As we continue to advance towards a more urbanized world and the impacts of climate change grow progressively, there is a greater need to accelerate digital adoption in line with the Sustainable Development Goals (SDGs),” said Fida Kibbi, vice president and head of Marketing, Communications and Sustainability & Corporate Responsibility at Ericsson Middle East & Africa.
Digitalization has a unique potential to enable other industrial sectors to move towards the low-carbon economy. According to the “2019 Exponential Roadmap” report, the digital industry has an important role to play in reducing global carbon emissions through existing ICT solutions across energy, manufacturing, agriculture, land use, buildings, services, transportation and traffic management.
According to research by Ericsson, ICT solutions could help to reduce greenhouse gas (GHG) emissions by up to 15 per cent by 2030, amounting to around ten gigatonnes of CO2e—more than the current carbon footprint of the EU and US combined. Examples of areas where the savings can be enabled by ICT solutions are: transportation, energy, industries and agriculture.
Ericsson takes a proactive stance and collaborates with a wide range of stakeholders to scale the impact of our joint programs and initiatives in areas like climate change, agriculture, financial inclusion and, humanitarian response.
Technology innovations have the potential to accelerate global efforts to achieve Sustainable Development Goals:
Technology to address the impacts of climate change
According to a report by the Global Humanitarian Forum, climate change is responsible for some 300,000 deaths each year and over $100 billion worth of economic losses, mainly because of shocks related to health and agricultural productivity. According to a recently published report, Africa is the region at the most immediate risk of droughts and floods.
With the acceleration of extreme weather, sea level rise, and other climate change impacts – precise weather information has become an absolute necessity. Innovators at Ericsson and the Swedish Meteorological and Hydrological Institute (SMHI) have been leveraging microwave data to solve the problem in a unique new initiative being piloted in Rwanda.
Ericsson Weather Data creates detailed and cost-efficient rainfall and flood predictions using the existing telecom infrastructure. Ericsson and SMHI leverage cellular network data to measure rainfall in real time, utilizing signal disturbances in microwave links.
By applying an algorithm, these disturbances can be used to measure exactly how much rain has fallen between two points on a microwave network. Potential use cases include climate mitigation efforts, flood prevention in sewage and stormwater systems in cities, agriculture, transport solutions, tourism, insurance, weather agencies and water utilities.
Banking the unbanked
Mobile financial services are a global game-changer with an open money network being the connection needed between the financial industry and telecom to increase both the commercial and social inclusion benefits.
With mobile money, people can make payments anywhere at any time with their mobile devices connected with Internet. This allows end-users to seamlessly purchase products or services without having to physically hand overcash or swipe a card. The freedom to send, spend and receive money with a mobile phone is quickly becoming an essential part of life for billions of people.
According to data from Ericsson ConsumerLab, more than half of consumers in Africa are using mobile money services through an agent, and some 20 per cent use mobile money themselves on a mobile phone. However, the unbanked are the ones who are least involved in the formal financial system, due to factors such as distance to banks, education, and the inability to authenticate their identity,
Increasing financial inclusion through the use of digital technology is an essential element in furthering the economic development of Africa. And the story does not end here. Mobile money services have become an essential, life-changing tool across Africa, providing access to safe and secure financial services but also to energy, health, education and employment opportunities.
“Ericsson is committed to using technology to contribute to new innovative solutions for a better tomorrow, and our aim is to develop solutions that support the achievement of the Sustainable Development Goals within the context of sustainable business practices,” Kibbi concluded.
Mark Anthony Karam in an October 21, 2019, article that is a response to his “Does micro-mobility have a place in the GCC?” elaborates on possibilities of moving around obviously the plush urban centres of the GCC. But only during certain times of the year unless a personalised Air Conditioning apparatus is provided with the ‘cyacle’. The image above is credit to The National.ae .
With the rest of the world continues to see the micro-mobility sector enjoy growing success, could we see a similar success in the GCC?
Micro mobility was an ideal solution to the last-mile issue in countries like China or the US
The GCC might not be as ideal for a replicated success
There are several factors today that pose obstacles impeding its growth
Micro mobility, which involves light-weighted means of transportation like electric scooters and bikes for short trips, usually in urban areas, has continued to grow internationally. Countries like China, the United States and many EU nations are finding great success with this novel sector, which builds on many of the concepts of the sharing economy that innovators like Uber brought into the mainstream.
Lime and Bird, US rivals in the sector, reached unicorn status in a handful of years each since their founding. One of the reasons for their sudden success is that they solved the long-standing last-mile issue, capitalizing on a neglected market gap.
The GCC goes mobile Today in the GCC, some are attempting to solve this last-mile problem as well. Earlier this year, Careem announced that it had acquired Abu Dhabi bikeshare startup Cyacle, which would add a micro-mobility offering to their services. Launched in December 2014, Cyacle is a fully-automated docked bike-share service currently operating in Abu Dhabi. Stations run 24-hours a day via an app, a touch screen kiosk and docking system that releases bikes using a ride code or a member key.
At the time, Careem had also announced that it was partnering with Dubai’s Roads and Transport Authority (RTA) to install 350 bike docking stations across the Emirates, where citizens would have access to 3,500 bicycles to bike share.
Another firm, Dubai-based Arnab Mobility, is also providing a similar service.
“Global cities are currently trying to find solutions to the global warming problems mainly caused by fossil fuel vehicles,” Dr. Dheeraj Bhardwaj, Group CEO of Arnab Mobility, tells Gulf News. He ponders an age-old question: “Also, city inhabitants and visitors struggle with first/last mile transportation, congestion and expenses. How efficient is it for a one-ton hulk of metal to take one person two to three miles? Conventional transportation systems are currently insufficient with people dealing daily with traffic, a lack of parking spaces, as well as long walks from bus stops and metro stations.”
Yet, while these solutions offer a service on par with international counterparts, it is important to remember the financial, cultural, and climate situation of the region.
Firstly, it is important to remember that the GCC region is known for its oil-derived wealth, with many nationals owning multiple vehicles and often employing personal drivers to help family members commute. Secondly, travel distances for major outings are already quite short.
“With urbanization on the rise, the majority of trips people take fall within the category of micro-mobility and thus are prime candidates for bike and scooter usage. In the US, for instance, roughly 60% of all trips are 5 miles or less,” CBinsights explains.
One of the reasons micro-mobility solutions are so attractive abroad is because of their perceived value for the service provided. Instead of paying a whopping fee for a taxi get you across 4 city blocks in New York, a US citizen would opt to rent a Lime scooter for a fraction of the cost. In the GCC, with its small-sized nations, large roads and affordable taxi services, this is not yet a problem. The countries in the region, save for Saudi Arabia, are sometimes comparable to entire Western cities in size. Bahrain, for example, has an area of 765.3 km², which is half the size of London (1,572 km²).
Therefore, from a financial and spatial perspective, micro-mobility services might struggle.
Then arises the issue of culture perceptions. While women have been driving for more than a year now in Saudi Arabia for example, breaking gender bias and perception is still an ongoing challenge. The country is certainly moving towards progress, but micro-mobility firms will have to consider this nonetheless. Also, consider that environmental awareness and consideration only just recently began to receive mass attention in the region in the past few years. Getting people to opt for bikes over a more convenient car ride will still prove a struggle.
Finally, and perhaps the most glaring of the issues plaguing micro-mobility companies in the region, is the climate and weather. The GCC is infamous for its scorching desert sun and sweltering heat. While public transportation like the Dubai metro or public buses offer some reprieve from the heat with their AC units, an e-scooter or bike doesn’t. When it’s 50 degrees Celsius outside and you need to just get home after a long day at work, a taxi or Uber, even for the higher fee, will prove the go-to choice. That remains the sector’s greatest obstacle. How it addresses it is still in question.
Mark Anthony Karam has 4 years of experience in the field of visual and written media, having earned his Masters degree from the UK. You can get in touch with him here: firstname.lastname@example.org
ABU DHABI, UAE, Oct. 16, 2019 / PRNewswire/ — Abu Dhabi today announced the establishment of the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), the first graduate level, research-based AI university in the world. MBZUAI will enable graduate students, businesses, and governments to advance artificial intelligence.
The University is named after His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, who has long advocated for the UAE’s development of human capital through knowledge and scientific thinking to take the nation into the future. MBZUAI will introduce a new model of academia and research to the field of AI, providing students and faculty access to some of the world’s most advanced AI systems to unleash its potential for economic and societal development.
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State, who has been appointed Chair of the MBZUAI Board of Trustees and is spearheading the establishment of the University, said: “The Mohamed bin Zayed University of Artificial Intelligence is an open invitation from Abu Dhabi to the world to unleash AI’s full potential.”
“The University will bring the discipline of AI into the forefront, molding and empowering creative pioneers who can lead us to a new AI empowered era,” he added.
Experts from around the world have been selected for the University’s Board of Trustees. They include MBZUAI Interim President, Professor Sir Michael Brady, professor of Oncological Imaging at the University of Oxford, UK; Professor Anil K. Jain, a University Distinguished Professor at Michigan State University, USA; Professor Andrew Chi-Chih Yao, Dean of the Institute for Interdisciplinary Information Sciences at Tsinghua University, Beijing, China; Dr. Kai-Fu Lee, a technology executive and venture capitalist based in Beijing, China; Professor Daniela Rus, Director of Massachusetts Institute of Technology (MIT) Computer Science and Artificial Intelligence Laboratory (CSAIL), USA, and Peng Xiao, CEO of Group 42.
Over the next decade, AI is set to have a transformational impact on the global economy, with experts estimating that, by 2030, AI could contribute nearly $16 trillion to the global economy and account for nearly 14% of the UAE’s GDP.
Professor Sir Michael Brady, Interim President of MBZUAI, said: “We are now at a turning point in the widespread application of advanced intelligence. That evolution is – among other things – creating exciting new career opportunities in nearly every sector of society. At MBZUAI, we will support students to capture those opportunities and to magnify their contribution to the field of AI globally.”
The University will offer Master of Science (MSc) and PhD level programs in key areas of AI – Machine Learning, Computer Vision, and Natural Language Processing. All admitted students will receive a full scholarship, monthly allowance, health insurance, and accommodation.
Graduate students can now apply to MBZUAI via the University’s website. The first class will commence coursework at MBZUAI’s Masdar City campus in September 2020.
With regional governments now set to reduce oil dependency through policy and regulation change, the Industrial Revolution 4.0 and the phenomenon of the Internet of Things (IoT) is now rife among all sectors in the region, added the report from MEED, a leading business intelligence provider.
Organizations are on board to make structural changes through the usage of advanced and innovative technology. But while many of the innovations that promise to shape the region in the coming years are still new, and sometimes experimental, others are widely known, even if not yet in common use.
MEED looks at 10 technologies set to transform the Middle East over the next decade.
Grid-scale batteries to enable energy diversification
Global investment in high-capacity batteries is transforming the market for renewable energy. The large-scale adoption of alternative energy has long been hampered by the unreliable, inflexible nature of its major sources, the wind and sun. The problems caused by intermittent energy production can only be solved by developing effective storage solutions; batteries that can store energy at peak production times for later deployment.
A significant drop in the prices of lithium and vanadium – essential battery components – in addition to improvements in battery efficiency, are enabling large scale adoption of energy storage facilities.
Abu Dhabi’s recent launch of the region’s first Grid-Scale Battery Deployment and the world’s largest Virtual Battery Plant is indicative of the region’s commitment to diversifying its energy supply.
Digital payment – fintech
The initial caution of governments in GCC to digital payments and financial technology (fintech) is beginning to abate and the first online payments were made across the region in 2018, following a series successful trials of the technology that persuaded authorities to relax regulation. With limited access to banking facilities, an estimated 86 per cent of adults in the region (Reuters) do not have a bank account. This, coupled with an increase in the mobile phone capabilities makes the Mena market a real opportunity for fintech investment. Research company Mena Research Partners estimated the fintech market in the Mena region to be worth $2 billion in 2018 and it is expected to reach $2.5 billion by 2022.
There is a growing realisation that complex systems such as oil fields, electricity grids, building sites and entire cities can be managed more effectively if siloed data can be combined on a single platform. New remote sensor technology can provide critical real-time data, allowing managers to make quick, informed decisions and increasingly intelligent software is being developed to automate complex processes. Internet of Things (IoT), which is a convergence of technologies such as remote sensors, machine learning and real-time analytics, is central to the development of these smart, digital ecosystems.
The GCC has been a global frontrunner in the uptake of autonomous driving, with UAE leading the way. The Dubai Future Foundation in partnership with Dubai Roads and Transport Authority (RTA) launched the Dubai Autonomous Transportation Strategy which aims to make 25 per cent of Dubai transportation autonomous by 2030, saving $6 billion annually. The RTA is currently conducting tests to decide the winners of the Dubai World Challenge for Self-Driving Transport, which are focused on the provision of first/last Mile transportation.
5G supporting the new digital ecosystem
In May this year, Emirates Telecommunication Company, Etisalat, launched the region’s first 5G enabled smartphones. The new 5G networks transfer data 20 times faster than 4G, have a bigger capacity, are more reliable. This vital development is needed to support the emerging ecosystem of digital technologies including IoT, smart cities, cloud computing and autonomous vehicles. According to Globaldata, the number of mobile network subscriptions in the Mena region is expected to be 15.8 million by 2023.
Shift away from traditional fuel sources to free up crude oil for higher value products and export sees an increase in demand for alternative energy sources. One of the most promising alternative fuels is hydrogen, which can be produced using solar photovoltaic technology. This will be showcased at Expo 2020 by the use of fuel-cell vehicles that run on hydrogen generated at a solar-driven hydrogen electrolysis facility at Mohammed bin Rashid Solar Park.
Using AI to make the most of VR and AR
Initially gaining popularity through the gaming industry, augmented and virtual reality (AR and VR) are increasingly being used for training, marketing and problem-solving. VR systems can have powerful applications when combined with artificial intelligence (AI). For example, it could be possible to develop a microscope that can highlight cancerous cells or the dashboard of a vehicle that can detect hazards and alert the driver using signals on the dashboard.
Electrification of transport
Electric Vehicles (EVs) potentially are among the most transformative of all emerging technologies, delivering a change as significant as the move from horse-drawn carts and internal combustion engines in the early 2oth century. While electric milk floats and golf buggies have been widely used since the middle of the 20th century, huge leaps forward in battery capacity and materials technology have brought EVs to the edge of becoming mainstream modes of transport.
Their benefits in terms of reducing carbon emissions and energy conservation could be huge. Technical challenges ranging from development of electricity charging infrastructure through to battery capacity and safety capabilities remain to be overcome however before EVs they will become our primary mode of transport.
By 2025, the global 3D printing market is expected account for an annual spend of over $20bn.The Middle East is recognising the potential of additive manufacturing, with Dubai leading the trend with its3D printing strategy, announced in April 2016, which set the ambitious target of all constructing 25 per cent of new buildings using additive manufacturing. The sectors that could see the most benefit from the technology are healthcare – for joints, teeth, medical and training equipment, aerospace, consumer manufacturing and construction.
Food security – Vertical farming and hydroponics
Increasing population, extreme climate conditions and political and economic instability are putting food security in the Middle East high on the political agenda. With the region importing over 50 per cent of its food, governments are looking to boost local production using soil-free methods of farming that are 70 per cent more water efficient than traditional methods and use fewer chemicals. New, vertical farming techniques that require less space can be adopted in urban areas to bring production closer to the consumers.
With these new technological trends disrupting the market, Meed has introduced the third edition of the MEED awards, assessing companies on their initiatives in becoming more technologically advanced. Powered by Parsons (strategic construction partner) and Acwa Power (official power & water partner) the MEED awards is due to close its submission deadlines by the end of this week. – TradeArabia News Service
MENA parents are attracted to e-commerce for the “Back to School” shopping, increasing their interests and buying habits at exponential levels between 2017 and 2019.
The buying trends between August 2017 and August 2019 in the Back to School category revealed that traditionally the sales spike around the month of August
In 2019, online sales reached their highest level, measuring a 6 times growth compared with August 2017
With the region opening up more to e-commerce and with the market competitive sellers, the Back to School online sales will stay on a growth pattern
ADMITAD analysts recently released an online sales report that shows Back To School shopping has grown 6 times since 2017. Analysts observed data over the course of 2 years measuring the buying trends in the Back To School categories across different countries in the MENA region.
The buying trends between August 2017 and August 2019 in the Back to School category revealed that traditionally the sales spike around the month of August. However, in 2019, online sales reached their highest level, measuring a 6 times growth compared with August 2017. With the region opening up more to e-commerce and with the market’s competitive sellers, Back to School online sales will stay on a growth pattern, expecting to reach in August 2020 the highest level measured in the past years.
“The growth we’ve seen in 2 years is indicative of MENA region developing into a more mature market in e-commerce, with giants like Amazon, Noon, Namshi creating outstanding value for the customers. Other factors are contributing too, such as the rise of social media influencers and the unparalleled cash value offers online shopping provides. Having said that, this is just the beginning as we estimate the growth to continue at a rapid rate in the next 2 years” said Artem Rudyuk, head of MENA Operations at ADMITAD.
The convenience of fast-delivery, an abundance of offers and eye-catching promotions alongside a wider diversity of the products, are some of the top reasons why MENA region Back-To-School customers’ interest in online shopping is growing.
One of the fastest-growing marketplace for parents, Sprii.com, is confirming the positive climb of the online sales during August, with a growth of 181% in the back to school category. Sarah Jones, CEO, and Founder of Sprii said: “Sprii has seen a 181% increase in sales in its back to school category over the last year. We see traffic fast moving away from your traditional bricks and mortar stores to online platforms as product ranges increase, prices are cheaper and delivery becomes easier. The leading contributor of growth in this category has been kids lunchboxes and healthy snacks, which we see in keeping with the regional movement towards healthy sustainable living, and the site-wide increase in organic product sales.”
The estimated increase in back-to-school spending represents an opportunity for MENA based e-commerce companies to capitalize on this new profit-making shopping season, together with Christmas, Ramadan, and Back Friday. The MENA region players have an unprecedented opportunity to convert customers with competitive advertising, offers, prices and bundles during the online browsing process.
Artem Rudyuk is the Head of MENA Operations for Admitad, heading the Development of affiliate partnerships between e-commerce merchants and online publishers on cost per action basis and bringing affiliate marketing in MENA region to a new level with the most transparent and tech advanced platform.
There is a global standoff going on about who stores your data. At the close of June’s G20 summit in Japan, a number of developing countries refused to sign an international declaration on data flows – the so-called Osaka Track. Part of the reason why countries such as India, Indonesia and South Africa boycotted the declaration was because they had no opportunity to put their own interests about data into the document.
‘Digital colonialism’: why some countries want to take control of their people’s data from Big Tech
With 50 other signatories, the declaration still stands as a statement of future intent to negotiate further, but the boycott represents an ongoing struggle by some countries to assert their claim over the data generated by their own citizens.
Back in the dark ages of 2016, data was touted as the new oil. Although the metaphor was quickly debunked it’s still a helpful way to understand the global digital economy. Now, as international negotiations over data flows intensify, the oil comparison helps explain the economics of what’s called “data localisation” – the bid to keep citizens’ data within their own country.
Just as oil-producing nations pushed for oil refineries to add value to crude oil, so governments today want the world’s Big Tech companies to build data centres on their own soil. The cloud that powers much of the world’s tech industry is grounded in vast data centres located mainly around northern Europe and the US coasts. Yet, at the same time, US Big Tech companies are increasingly turning to markets in the global south for expansion as enormous numbers of young tech savvy populations come online.
Accusations of ‘digital imperialism’
Take, for example, the case of Facebook. While India is the country with the biggest amount of Facebook users, when you look at the location of Facebook’s 15 data centres, ten are in North America, four in Europe and one in Asia – in Singapore.
The economic argument for countries in the global south to host more data centres is that it would boost digital industrialisation by creating competitive advantages for local cloud companies, and develop links to other parts of the local IT sector.
Many countries have flirted with regulations on what sort of data should be stored locally. Some cover only certain sectors such as health data in Australia. Others, such as South Korea, require the consent of the person associated with the data for it to be transmitted overseas. France continues to pursue its own data centre infrastructure, dubbed “le cloud souverain”, despite the closure of some of the businesses initially behind the idea. The most comprehensive laws are in China and Russia, which mandate localisation across multiple sectors for many kinds of personal data.
Countries such as India and Indonesia with their massive and growing online populations arguably have the most to gain economically from such regulations as they currently receive the least data infrastructure investment from the tech giants relative to the number of users.
The economics aren’t clear cut
Supporters of data localisation cite developing countries’ structural dependency on foreign-owned digital infrastructure and an unfair share of the industry’s economic benefits. They dream of using data localisation to force tech companies into becoming permanent entities on home soil to eventually increase the amount of taxes they can impose on them.
Detractors point to the high business costs of local servers, not just for the tech giants, but also for the very digital start ups that governments say they want to encourage. They say localisation regulations interfere with global innovation, are difficult to enforce, and ignore the technical requirements of data centres: proximity to the internet’s “backbone” of fibre optic cables, a stable supply of electricity, and low temperature air or water for cooling the giant servers.
Attempts to measure the economic impact of localisation are extremely partisan. The most cited study from 2014 uses an opaque methodology and was produced by the European Centre for International Political Economy, a free trade think-tank based in Brussels, some of whose funding comes from unknown multinational businesses. Not surprisingly, it finds gross losses for countries considering localisation. Yet, a 2018 study commissioned by Facebook found that its data centre spending in the US had created tens of thousands of jobs, supported renewable energy investments and contributed US$5.8 billion to US GDP in just six years.
Like the equivalent arguments for and against free trade, taking a dogmatic position for or against the issue masks other complexities on the ground. The economic costs and benefits depend on the type of data stored, whether it’s a duplicate or the only copy, the level of government support for wider infrastructure subsidies, to name just a few factors.
India has been the most vocal supporter for localisation, promoting its own regulation as “a template for the developing world”, but it’s in a strong position to do so given the country’s relatively advanced digital industrialisation and technical manpower. Other emerging economies with large online populations, such as Indonesia, have vacillated on their localisation regulations under pressure from the US government which has threatened to pull preferential trade terms for other goods and services if they went ahead with restrictive regulations.
What governments do with the data
While the international economics of personal data may follow some of the same general dynamics as oil production, data is fundamentally different from oil because it does a double duty – providing not just monetary value to businesses, but also surveillance opportunities for governments. Some civil society activists I’ve met as part of my research in India and Indonesia told me they were sceptical of their own governments’ narratives about data colonialism, worrying instead about the increased access to sensitive personal information that localisation gives to governments.
It’s not just large corporations and states that have roles to play in this bid for “data sovereignty”. Tech developers may yet find ways to support the rights of individuals to control their own personal data with platforms such as databox, which gives each of us something akin to our own personal servers. These technologies are still in development, but projects are springing up – mostly around Europe – that not only give people greater control over their personal data, but aim to produce social value rather than profit. Such experiments may yet find a place in the developing world alongside what states and large corporations are doing.
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