Fourth Industrial Revolution

May 21, 2024

Fourth Industrial Revolution 🤖

Introduction

  • Coined by Klaus Schwab, founder of the World Economic Forum.
  • Introduced at the World Economic Forum’s annual meeting in Davos, 2016.
  • Major technologies: AI, autonomous vehicles, IoT.

Historical Context

First Industrial Revolution

  • Started in Great Britain around 1760.
  • Powered by the steam engine.
  • Led to new manufacturing processes, factories, and a booming textiles industry.

Second Industrial Revolution

  • Late 1800s.
  • Marked by mass production: steel, oil, electricity.
  • Major inventions: light bulb, telephone, internal combustion engine.

Third Industrial Revolution

  • Known as the Digital Revolution, occurred in the late 20th century.
  • Major inventions: semiconductor, personal computer, internet.

Key Characteristics of the Fourth Industrial Revolution

  • Technology merging with human lives.
  • Technological changes happening faster than ever.

Rapid Adoption Rates

  • 75 years for the telephone to reach 100 million users.
  • Instagram reached 100 million users in 2 years.
  • PokĂ©mon Go reached 100 million users in 1 month.

Examples of Fast-Paced Technology

  • 3D Printing: Expected increase from 200,000 shipments in 2015 to 2.4 million in 2020.
  • Application in medicine, e.g., 3D-printed bones and bionic arms.

Innovation and Industry Impact

  • Increased patents in 3D printing, AI since the early 2000s.
  • Companies embracing tech for efficiency.
  • Struggle for some companies and governments to keep up.

Inequality Issues

  • Innovators, investors, shareholders benefit the most.
  • Billionaires driving 80% of main breakthrough innovations in the last 40 years.
  • High-skilled workers earn high pay, leaving many others behind.

Job Market Shifts

  • AI will eliminate some jobs and create demand for new skills.

Privacy Concerns

  • Increased digitization across industries.
  • Companies collecting more customer data.
  • Growing user concern over privacy.

Conclusion

  • Organizations need to adapt to rapid tech changes.
  • Majority of leaders lack confidence in their organizations’ readiness.

Speaker: Elizabeth in Davos, Switzerland Source: CNBC Explains Video