There have been many debates about AI, IoT, and blockchain, and many claims to be innovative in these technologies.
There is industry-wide awareness of the potential of these three emerging technologies and a general understanding of the basic principles behind them However, companies are still grappling with how each technology can be capitalized on.
As per experts, introducing these technologies business processes is complex for companies. Also, organizations tend to explore them in isolation rather than as part of a whole, which is another challenge. But, if we build blockchain solutions with AI and IoT together, can businesses experience advancements in their pursuit of digital transformation? Let’s find out.
By 2022, finding an industry that hasn’t implemented some form of IoT technology would be hard-pressed. These IoT devices collect data at a colossal rate, offering near-infinite opportunities for businesses to improve their operational effectiveness, or even arrange proprietary data as a product.
We’re just at the tip of the iceberg as only a small proportion of today’s world-generated data is being evaluated. Current IoT discussions are mostly about technology (i.e. 5 G networks and connected devices). Instead, we should be concentrating on how we can transform data into actionable insights. Here, artificial intelligence and its application come into play.
Studies suggest that less than half of the organizations comprehend the advantages and limitations of combining IoT and AI. It is a key generational divide that is filled can be the key to enabling IoT to reach its highest potential.
AI captures raw data of systems and makes sense of it, while machine learning processes that information and infuses it at a device or sensor location with actionable insights. It then creates a flow in which IoT devices and sensors collect data, AI analyzes it to provide insights, machine learning optimizes devices for actionable insights, and they collect more nuanced data.
For instance, an IoT-enabled healthcare device that monitors the condition of an elderly patient collects relevant data. Further, AI translates it to understand that the patient might have not taken their medication in due time. Then, machine learning algorithms warn the program to send further updates, remind, or escalate the situation to a healthcare worker.
It also makes it possible to arrange a business information exchange efficiently. For example, data from the healthcare sector can benefit the insurance and sport lifestyle industries. It does, however, call into question security and that’s where Blockchain enters.
Blockchain is probably the technology most overlooked of them all. A majority of businesses do not completely understand how IoT, AI, and blockchain can work together for maximizing efficiency.
Indeed, with its immutable distributed ledger, blockchain can establish and develop trust and transparency in data exchange across an ecosystem. Additionally, with smart contract solutions, it facilitates faster transactions and reduces overall costs by cutting the intermediaries in various business outcomes.
Returning to our previously mentioned example of healthcare, blockchain can be used to facilitate the secure transfer of sensitive data among care providers, including hospitals, rehabilitation centers, insurance companies, clinical trials, social workers, family members, and more.
Had blockchain been implemented, things during the 2008 Lehman Brothers crash could also have been different. But, no one had full knowledge during the crash, such as who held what assets and the magnitude of the threat. An ecosystem that features regulators as nodes could have helped track challenges.
The integration of blockchain, IoT, and AI will enable organizations to optimize the benefits of these technologies. The convergence will ensure the mitigation of the associated risks and limitations. Because IoT networks involve a multitude of connected devices, the network includes multiple vulnerabilities, including fraud and data theft.
AI-driven by machine learning will proactively protect itself against malware and hacker attacks to avoid security problems. Blockchain will further improve network and data protection, which can restrict the unauthorized access and manipulation of the network data. Additionally, AI can improve the IoT network’s efficiency by making it smarter and more autonomous.
A possible case demonstrating the integration of blockchain, IoT, and AI is Fujitsu’s algorithm for calculating the heat stress rates of the staff. Basically, the algorithm continuously tracks the physiological data of workers, such as temperature, humidity, levels of activity, pulse, etc., using IoT wearables and sensors to track the association between various variables and the health of employees. Further, an analysis assists an organization to augment employee working practices and save them from exposure to serious work-induced health problems. Adding blockchain to this program can help keep track of more customized data by maintaining anonymity, or can help with smart contracts to disburse health insurance amounts.