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The Fourth Industrial Revolution

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The Fourth Industrial Revolution heralds a series of social, political, cultural, and economic upheavals that will unfold over the 21st century. Building on the widespread availability of digital technologies that were the result of the Third Industrial, or Digital, Revolution, the Fourth Industrial Revolution will be driven largely by the convergence of digital, biological, and physical innovations.

Like the First Industrial Revolution ’s steam-powered factories, the Second Industrial Revolution ’s application of science to mass production and manufacturing, and the Third Industrial Revolution’s start into digitization, the Fourth Industrial Revolution’s technologies, such as artificial intelligence, genome editing, augmented reality, robotics, and 3-D printing, are rapidly changing the way humans create, exchange, and distribute value. As occurred in the previous revolutions, this will profoundly transform institutions, industries, and individuals. More importantly, this revolution will be guided by the choices that people make today: the world in 50 to 100 years from now will owe a lot of its character to how we think about, invest in, and deploy these powerful new technologies.

It’s important to appreciate that the Fourth Industrial Revolution involves a systemic change across many sectors and aspects of human life: the crosscutting impacts of emerging technologies are even more important than the exciting capabilities they represent. Our ability to edit the building blocks of life has recently been massively expanded by low-cost gene sequencing and techniques such as CRISPR; artificial intelligence is augmenting processes and skill in every industry; neurotechnology is making unprecedented strides in how we can use and influence the brain as the last frontier of human biology; automation is disrupting century-old transport and manufacturing paradigms; and technologies such as blockchain , used in executing cryptocurrency transactions, and smart materials are redefining and blurring the boundary between the digital and physical worlds.

The result of all this is societal transformation at a global scale. By affecting the incentives, rules, and norms of economic life, it transforms how we communicate, learn, entertain ourselves, and relate to one another and how we understand ourselves as human beings. Furthermore, the sense that new technologies are being developed and implemented at an increasingly rapid pace has an impact on human identities, communities, and political structures. As a result, our responsibilities to one another, our opportunities for self-realization, and our ability to positively impact the world are intricately tied to and shaped by how we engage with the technologies of the Fourth Industrial Revolution. This revolution is not just happening to us—we are not its victims—but rather we have the opportunity and even responsibility to give it structure and purpose.

As economists Erik Brynjolfsson and Andrew McAfee have pointed out, this revolution could yield greater inequality , particularly in its potential to disrupt labor markets. As automation substitutes for labor across the entire economy, the net displacement of workers by machines might exacerbate the gap between returns to capital and returns to labor. On the other hand, it is also possible that the displacement of workers by technology will, in aggregate, result in a net increase in safe and rewarding jobs.

All previous industrial revolutions have had both positive and negative impacts on different stakeholders. Nations have become wealthier, and technologies have helped pull entire societies out of poverty, but the inability to fairly distribute the resulting benefits or anticipate externalities has resulted in global challenges. By recognizing the risks, whether cybersecurity threats, misinformation on a massive scale through digital media, potential unemployment, or increasing social and income inequality, we can take the steps to align common human values with our technological progress and ensure that the Fourth Industrial Revolution benefits human beings first and foremost.

We cannot foresee at this point which scenario is likely to emerge from this new revolution. However, I am convinced of one thing—that in the future, talent, more than capital, will represent the critical factor of production.

With these fundamental transformations underway today, we have the opportunity to proactively shape the Fourth Industrial Revolution to be both inclusive and human-centered. This revolution is about much more than technology—it is an opportunity to unite global communities, to build sustainable economies, to adapt and modernize governance models, to reduce material and social inequalities, and to commit to values-based leadership of emerging technologies.

The Fourth Industrial Revolution is therefore not a prediction of the future but a call to action. It is a vision for developing, diffusing, and governing technologies in ways that foster a more empowering, collaborative, and sustainable foundation for social and economic development, built around shared values of the common good, human dignity, and intergenerational stewardship. Realizing this vision will be the core challenge and great responsibility of the next 50 years.

This essay was originally published in 2018 in Encyclopædia Britannica Anniversary Edition: 250 Years of Excellence (1768–2018).

The Fourth Industrial Revolution: An Introduction to Its Main Elements

• First Online: 01 November 2022

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• David Mhlanga   ORCID: orcid.org/0000-0002-8512-2124 3  

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This chapter's main goal is to identify key distinctions between the Fourth Industrial Revolution and earlier industrial revolutions. The attributes that are a sign of all industrial revolutions are used in the chapter to demonstrate that the transition to the Fourth Industrial Revolution is a new industrial revolution. These attributes include changes in the types of technological modes because of widespread adoption of accumulated industrial innovations and systemic changes in a variety of industries, including education, finance, the manufacturing industry, and logistics, among others. The chapter emphasizes how the Fourth Industrial Revolution is unprecedented and has a variety of unique characteristics when compared to other industrial revolutions. The chapter also highlights that due to the massive developments of the Fourth Industrial Revolution, there is a global shift in the way people transacted money from old methods like visiting banks or moneylenders or paying with checks or cash to digital methods like mobile money, ATMs, and online transactions, among others.

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Mhlanga, D. (2022). The Fourth Industrial Revolution: An Introduction to Its Main Elements. In: Digital Financial Inclusion. Palgrave Studies in Impact Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-16687-7_2

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The Fourth Industrial Revolution: Challenges, Risks and Opportunities

ARTICLE | September 13, 2020 | BY Valeriy V. Goncharov

Modern challenges, risks and opportunities of a new technological paradigm of human development—the so-called fourth industrial revolution—are covered in this article. Their social costs and consequences are discussed in detail. The impact of the fourth industrial revolution on business development is analyzed. Development of information platforms of supply and demand is presented as the creation of new business models. When considering the impact of the fourth industrial revolution on the state, it is concluded that the state has increased control over society, while changing the mechanisms of interaction between the state and civil society, the development of competition and decentralization of power. It is pointed out that the ability of state structures and authorities to adapt to the conditions of the fourth industrial revolution will determine their survival in the new conditions. If they are able to face the world of revolutionary change openly, the ability to change their state structures, make them transparent and the effectiveness will allow the state to maintain its competitive advantages and withstand the tests of a new technological paradigm of human development. Artificial intelligence is considered in detail as the main driver of the fourth industrial revolution.

The world is at the very precipice of a new technological revolution that will fundamentally change our way of being, life, work and ways of interaction with each other. In its scale, scope and complexity, the transformation/changes will differ considerably from anything experienced by humanity so far. We still have no idea how it will evolve, but one thing becomes apparent: our response should be universal and comprehensive, including all active participants in world politics, from the public-private sectors to the intellectual and civil society. Klaus Schwab, the founder and Executive Chairman of the World Economic Forum in Davos, describes these technological transformations/changes as the fourth industrial revolution.

During the first industrial revolution water and steam power were used to substitute manual work for machine work and develop industrial production, during the second electricity was used to expand and enhance the scale of mass production, during the third electronics and information technology were used  to automate production. And right now, the third industrial revolution is being replaced by the fourth, a digital revolution that has emerged and evolved since the middle of the last century. This has been mainly characterized by technology blending, which blurs the traditional borders between the material, digital and biological worlds.

Since 1784, steam power, water, and equipment for mechanization of production marked the first industrial revolution. Since 1870, the division of labor, electricity, and mass production shaped the character of the second. Since 1969, electronics, information technology and automation of production have become the basic features of the third. Can we identify the primary and main features of the next revolution?

There are three markers, which show that the present changes do not represent a follow-up to the third industrial revolution, but demonstrate the beginning of the fourth. These are the speed, scale of changes and their effects on the whole system. The speed of occurrence of new discoveries and technological breakthroughs has never been observed before. In contrast to the previous revolutions, the pace of development of the fourth revolution is exponential rather than linear. Furthermore, almost all industrial sectors in nearly every country are being reformatted, and the breadth and depth of changes foreshadow transformation of the whole production, administration and management systems.

The possibilities of billions of people, connected by mobile devices with powerful computing capacity, large amounts of information storage and access to knowledge, are endless. And these possibilities will be increased with the discovery of new technologies in various areas, such as artificial intelligence, robotics, autonomous means of transport, the Internet of Things, 3D printing, nano-biotechnology, materials science, energy technology and quantum computing.

1. Challenges and Opportunities

The fourth industrial revolution, as the previous three revolutions, has the capacity to increase global income and improve quality of life for peoples of the world. Consumers with material possibilities and access to the digital world are those who already enjoy its fruits/benefits; through its technologies, new products and services which increase efficiency and comfort for everyone. Taxi request, booking of flight tickets, marketing, making payment, listening to music, film screening or computer games—we have remote access to all of them.

In the future, technological innovations will give rise to significant changes in the industrial procurement, with long-term efficiency gains and productivity in this area. Transport and communication costs will be reduced, logistics and global supply chains will be made more efficient, trade margins will be decreased, all this will lead to the opening of new markets and economic growth.

At the same time, the revolution could bring increasing inequality as a result of changes in the labour market. Either automation, which replaces manual labour, or direct replacement of a worker for a machine, could cause an increase in the gap between the income of capital and the income of employees. However, it is possible that such replacement of workers will in the future provide a net increase in safe and top-paying occupations and jobs.

This shift has never proceeded smoothly without great social expenses. Moreover, most of them took place in the countries that made this shift too late. Thus, the first industrial revolution led to deindustrialization in India (in the 18 th century, India produced up to 25% of world GDP, by the mid-twentieth century the share fell to 2%), and there was a serious lack of technology in Russia and Turkey. The second industrial revolution caused the Great Depression, which resulted in major social shocks not only in the United States, Germany, Argentina, but also mass famine in the colonies (at the expense of which the metropolis was getting out of the crisis).

We have not yet generalized data on the consequences of the third industrial revolution. However, the most preliminary estimates show that deindustrialization of the post-Soviet space, series of crises in Latin America are the consequences of such a shift, in which these countries have lagged behind. Alternative examples are China and Korea, which integrated technology through competent industrial policy and managed to emerge as world leaders after the third technological revolution.

The most preliminary estimates show that at least 20% of jobs have been cut. And globalization has led to extremely uneven job cuts in different countries. The imposition of overproduction during the transition of the global crisis did not allow occupying the released labor force on a global scale through the growth of production. And the economic growth around the world of 3-4% per year does not solve any of its problems.

So far, it is difficult to foresee the likelihood of developing one scenario or another, but there are historical prerequisites demonstrating that the result will be a mixture of both versions. However, it is obvious that talent, rather than capital, will be a crucial factor in the production function during the fourth industrial revolution. It will result in the division of labour market into two main segments: “low-skilled labour/low salary” and “high-skilled labour/high salary”, a result of which will be an increase in social tension.

Apart from its crucial economic impact, disparity will also have a significant social aspect in the context of the fourth industrial revolution. The greatest beneficiaries will be those who provide intellectual and material capital—savers and investors—which explains the widening gap between groups dependent on capital and wage labour. Therefore, technology is one of the main factors of stagnation, as well as declining incomes, even in countries with high levels of income: the demand for high–skilled labour is growing, but it is dropping for medium-skilled labour. As a result, the labour market will be characterized by high demand for highly skilled and unskilled labor, with little demand for the middle segment.

Resentment could also be strengthened by the spread of digital technologies and the dynamics of social media in information dissemination . Today more than 30% of the world’s population use social media platforms for communication, education and information dissemination. In an ideal world, these relationships could provide opportunities for building bridges among diverse cultures and, as a result, for unity and cohesion. Nevertheless, these relationships also could create and promote unrealistic and utopian views of the success of an individual or group, as well as suggest and disseminate extreme (extremist) ideas and ideologies.

The invention of the XXI century was the emergence and quick wins of the information space by social media, which in many respects replaced the traditional media. Thus, according to studies of the international marketing management system HootSuite, as of January 2018 in Belarus more than 49% of the population (4.67 million) are active users of social media. 3.85 million Belarusians use social platforms on smartphones. But the most curious fact is that Belarus ranks first in the world in terms of the percentage of women on Facebook (58%). It should be acknowledged that only 8.6% of Belarusian business pages on Facebook use advertising tools (this is almost 3 times less than the average).

What can be connected with such changes? Firstly, social media is a more mobile way of transmitting and receiving information. It expands access to the social network, and today in Belarus only 3.25 million use the fixed internet, with a constantly increasing speed of access to the network, which makes social networks more competitive.

Thirdly, there is a deepening democratization of the information space. Earlier information could be provided only by centralized news agencies, now we see how social networks allow any registered account to become a kind of center for the transmission and dissemination of information. Therefore, today the media community is faced with an entirely new phenomenon—bloggers. Bloggers, in contrast with journalists, are not bound by mass media legislation, act as private individuals and are not responsible for the credibility in the transfer of information. The same can be said about social media, which leads to consequences in the area of quality of transmitted and reported information, as well as public security.

Sometimes the anonymity of social media leads to greater risks. Anonymity of accounts provides a broad range of instruments to manipulate the information space. Attempts to organize “revolutions through social networks” and as the distressing consequences  of the Arab Spring, rumblings of which we still observe in Syria and Yemen, show, social media requires the development of a legal framework that could regulate this sphere. In this regard, in the Republic of Belarus in 2010 in the National security concept, and in 2016 in the adopted New military doctrine provisions on the features of the threat of “hybrid wars” were introduced, namely in the part related to information and psychological methods of destabilization of the situation in the world.

On the one hand, it is necessary to develop legal support for freedom of speech in social media. On the other hand, participants in social networks should feel safe both in terms of access to accurate information and in terms of moral and psychological protection. The latter factors are important. Over recent years, there has been a great number of cases of so-called “hatering”, mentally incorrect behavior in social media, which sometimes causes deplorable and tragic consequences. Anonymity and legally undefined aspects of these media create loopholes, including illegitimate and illegal actions. Many social media networks, due to their anonymity, in particular the telegram channel, are used by destructive forces for communication by representatives of criminal and terrorist groups. Therefore, this resource has been recognized as hazard and blocked on the territory of the Russian Federation. Attempts of numerous information junk shot, misinformation and manipulation of interpretations of already existing information are also recorded. All these possess a hybrid threat, which is recognized by experts at the world level.

In the next thirty years, the role of the internet and social media will only gain more signitifance. Audience coverage will expand through generational change, increasing access to the internet in new regions and speed of data transmission. Moreover, in some countries social networks are already trying to integrate with e-governments, banking systems and Agency resources. There is an integration of information, management and payment systems, the process of digitalization, which expands the functions of social networks and requires more detailed elaboration of security and the establishment of a qualitatively new framework of legal support for social media functioning.

2. Impact on the Business

Nowadays significant challenges remain in thinking or anticipating the speeding up of innovation progress and increasing the pace of change, and these factors are the source of constant surprises even for the most skillful and informed participants. Anyways it has been clearly demonstrated in all sectors of economy, that the technology marking the beginning of the fourth industrial revolution has a decisive impact on business. The fourth industrial revolution is already happening, it is now picking up and the development of robotics will further digitalize the economy and automate production and services, and expand the use of little-used technologies.

In supply and logistics of many industries, we can notice the introduction of new technologies, enabling totally new ways of servicing for existing procurement needs, and, consequently, greatly competing with established production and value chains. A similar effect comes from the initiatives of innovative competitors, who due to worldwide digital platforms for research, development, marketing, sales and distribution, can quickly displace long and well-standing market participants, by improving quality, speed or cost of providing goods for consumption.

In addition, significant changes on the demand side are arising, as the increasing availability of information, constant involvement of the consumer and new patterns of consumer behavior (mainly as a result of access to mobile networks and information) make companies adapt ways of development, marketing and delivery of products or services.

Development of information platforms is a core trend. Such platforms combine supply and demand and undermine existing production structures, and as examples we can see new business models in the contemporary “sharing” economy and “on-demand” economy. These platforms (“Uber”, “Airbnb”, “Alibaba” etc.), easily used on smartphones, bring people, assets and data together, thus creating entirely new ways and means of consuming goods and services. In addition, they make easier achieving “wealth” for businesses and individuals easier, changing the personal and professional sphere of employed. These new business models are rapidly spreading as a large number of new services are booming, from laundry to shopping, from housekeeping to parking, from massage to transportation.

In general, there are four main effects of the fourth industrial revolution on business—the impact on consumer expectations, on product improvements, on collaborative innovation, and on forms of organization. Tangible products and services can be enhanced by means of digital opportunities that make them more valuable. New technologies make assets more sustainable and flexible, while data and analytics are changing the way they are being maintained. The world of individual consumer experience, widely available information services and efficient use of assets requires new forms of cooperation, especially considering the speed with which changes are going on. And the emergence of global platforms and other new business models, as a result, means, that individual capabilities, culture of society and organizational forms should be revalued.

3. Impact on the State

“ The fourth industrial revolution will change not just what we do, but also who we are. ”

As material, biological and digital worlds continue to merge, new technology and platform will provide expanding opportunities for citizens to interact with government agencies, to express their views, coordinate their efforts, and even to avoid authorities’ supervision. Concurrently, government agencies will receive new technological options to strengthen control over society, based on more complex and upgraded monitoring systems of digital infrastructure. However, the authorities will be under pressure to reconsider their approaches to interaction with civil society and pursue policies, as their central role in the latter will go down with the birth of new sources of competition, redistribution and decentralization of power arising from new technologies.

Ultimately, the adaptability of government structures and authorities will determine their survival. If they are able to accept the world of revolutionary changes, to modify their structures, to make them transparent and efficient enough to maintain their competitive advantages, then they will address new challenges. Otherwise, they may face difficult problems to solve.

This will become especially evident in the field of management. When the time of the second industrial revolution coincided with the then existing public policy and decision-making systems, decision makers had time to consider particular issues and formulate necessary solutions or appropriate regulatory frameworks. The entire process was linear, mechanical, with a strict top-down approach.

Such an approach is not suitable for our time. Given the rapid pace and scale of the impact of the fourth industrial revolution, legislators and regulators have faced unprecedented challenges and, mostly, found themselves somewhat helpless.

For example, how could they protect the interests of consumers and the society in a broad sense while continuing to foster innovation and technological progress? With the introduction of “flexible” public administration, the private sector has implemented appropriate measures to develop software and business models on a larger scale. It means that regulators should adapt to a new, ever-changing environment, evolving to fully understand what they regulate. For that purpose, the authorities and regulatory agencies should work closely with business and civil society.

4. Impact on Humanity

The fourth industrial revolution will change not just what we do, but also who we are. It will influence our identity and all related aspects: our perception of privacy, understanding of property, consumer habits, time that we devote to work and leisure, career development, a set of skills and competence, and personal relationships. At the core of this question is the permanent use of smartphones that may cause the loss of one of the most important aspects of our existence: to make a pause, to think and to start having meaningful conversations.

Privacy is one of the greatest personal challenges posed by new information technologies. We reflexively realise how important it is for everyone, though we are aware tracking and sharing information about ourselves is a crucial aspect of the new information interaction. The fundamental issues of the impact of the loss of control over our information on our private life in the near future will be only discussed more actively. In addition to breakthroughs in biotechnology and AI that redefine the concept of the human being on the whole and push back the boundaries of life expectancy, cognition and human capabilities will make us review our moral and ethical norms.

5. Artificial Intelligence (AI) as one of the main drivers of the Fourth Industrial Revolution

Artificial intelligence already exists in our lives, from self-driving cars and drones to virtual assistants who can translate or invest. By virtue of the exponential growth of computing power and the huge amount of accumulated data, the progress in the field of AI has been impressive in recent years. AI is widely used in creating new types of medicine and developing algorithms which can predict our future cultural preferences. At the same time, digital production technologies interact with the biological world. Engineers, designers, architects combine computer-aided design systems, additive manufacturing, materials science, and synthetic biology for breakouts in the discovery of symbiosis between microorganisms, our bodies, the substances we consume, and even the houses we live in.

Artificial intelligence will become the central driver of change according to the polling of 800 leaders of technological companies which was conducted specially for the 46 th World Economic Forum in Davos in 2016. 45% of respondents believe that in 2025, artificial intelligence may be present on the boards of directors of large companies.

Artificial intelligence used to exist only in science fiction, but now it is one of the most promising and rapidly developing technologies. Limited or “weak” AI technologies are already widely used in various spheres: from mobile phones and household electronics to military products. The development of “strong” artificial intelligence, which can make informed management decisions, is on the agenda today. Experts say that the prospect of creating such a technology, questions not only the current system of global labor division, but also the world order and international security system.

Discussions at the conference organized by the China Institute of Contemporary International Relations (CICIR) with the participation of the Stockholm Peace Research Institute (SIPRI) in September 2018 in Beijing showed that AI technologies will be used by nuclear powers in the near future to modernize their strategic weapons. The usage of “weak” artificial intelligence (sharpened to solve a specific task) for early warning of the launch of enemy missiles, as well as for estimating the possibility of such a launch, can give the military command of a nuclear power additional time to decide on the backlash and its scale. New technologies can also upgrade the accuracy of nuclear weapons and the effectiveness of missile defense, improve the protection of nuclear facilities, and provide better data.

At the same time, the acceleration of the decision-making process of one of the parties will inevitably push its potential enemies to search for opportunities for faster delivery of nuclear weapons. Such a race between nuclear powers potentially has a serious threat to world stability, since it will leave less and less time to estimate the threat of a missile attack and the expediency of response. Ultimately, it cannot be excluded that the countries will be forced to automatize decisions about a retaliatory strike, which can lead to unpredictable consequences. At the same time, weaker nuclear powers, feeling vulnerable, in the nearest future may implement an automatic nuclear retaliatory strike system (by analogy with the Soviet “Perimeter” system and the American “Operation Looking Glass”).

As part of the discussion, it was noted that even machine learning experts do not always fully understand how it works. Despite the rapid development of AI technologies, the “black box” problem, when decision-making algorithms remain hidden from developers, remains prevalent. Thus, before trusting artificial intelligence solutions related to the use of lethal weapons, it is necessary to significantly increase their transparency. However, there is inevitably a contradiction arising from the need to combine the transparency of machine learning mechanisms with their protection from the enemy, since the data used by neural networks can be “poisoned” by intentional manipulations (data poisoning). It is also important to note that military forces due to their work specifics have a fundamentally smaller amount of data for machine learning than civilian companies engaged in AI.

However, it is already obvious that in the medium term, AI will make production, transportation and trade more efficient, improve crop yields, open up many new opportunities for technology development, restructure labor markets and consolidate new approaches to national security and modern military system. One of the tendencies can be particularly shocking: eventually, it is impossible to exclude the possibility that countries will have to automatize decisions about a retaliatory strike, which can lead to unpredictable consequences. Also the situation is complicated by the fact that autonomous weapons and artificial intelligence are still in the “gray zone” of international law.

It means that countries which are able to develop and use innovations in the field of AI will have good prospects for economic growth and for enhancing national security. In contrast, countries that maintain an excessive dependence on outdated infrastructure and economic models will find it difficult to ensure competitiveness.

The United States is a global leader in AI. Companies such as Google, Amazon, Facebook, IBM and hundreds of start-ups conduct extensive research focused on developments in this area. In September 2018, a 2 billion dollar campaign was started in the United States to develop the next wave of AI technologies with the goal of “turning computers from specialized tools into problem-solving partners”.

At the same time, China is striving to become a world leader in AI by 2030. In October 2019, China allocated USD 1.6 billion for development in this area, and in 2017 investments amounted to USD 4.9 billion, which was the world’s largest investment in this sphere.

Although the USA and China are the largest players, the development of AI is global. In Israel and the UK, the sector is developing at a high level. Earlier this year, the French government announced a major public investment in this area. The promotion of innovation in the field of AI is also a key focus of governments in Japan, South Korea and Russia.

In September 2017, Vladimir Putin said that “artificial intelligence is the future not only for Russia, it is the future of all mankind. The one who becomes the leader in this sphere will be the ruler of the world.” In Russia, in 2017 the capacity of the AI market was less than USD 12 million, and by the end of 2020 it is expected to grow to USD 460 million. The AI market capacity in the industrial sector by 2021 will be USD 380 million.

“H ighly automated production does not involve the automation of physical actions and repetitive operations alone, but also the automation of human intellectual activity with its ability to solve non-standard tasks and formulate deep strategic goals.”

Former Google CEO Eric Schmidt believes that both Russian and Chinese leaders realized the importance of this area, not only from the commercial point of view, but also for military developments. In May 2018, at a meeting on military construction, Vladimir Putin stated that the production of weapons should focus on the implementation of AI and robotics.

In recent years the AI market in Belarus has grown several times. The High-Tech Park (HTP), which was established in 2005, has about 400 residents now. In 2018, more than 70 companies are engaged in AI, of which the most famous are MSQRD, AI Matter, Viber and EPAM. The number of specialists in the field of AI reaches 1,700 people.

The Decree of the President of the Republic of Belarus Alexander Lukashenko “On the Development of the Digital Economy”, signed at the end of 2017, served as an impulse for the active development of technologies by IT companies. The main developments in Belarus on AI are applied in the fields of car industry, health care, agriculture, industrial production, finance, transport and environmental protection. Solutions are being developed for automated vehicles, speech recognition, search technology, computer vision, increasing the effectiveness of the use of acreage, yield forecasting, etc.

Highly automated production, changing the configuration of socio-economic and administrative relationships, does not involve the automation of physical actions and repetitive operations alone, but also the automation of human intellectual activity with its ability to solve non-standard tasks and formulate deep strategic goals. Despite the presence of advanced systems that automate certain aspects of human intellectual activity, it is extremely difficult to realize the ability to solve non-standard tasks and formulate deep strategic goals at a high quality level. At the same time, it is necessary to understand that the technology of machine learning in practice proved the possibility of formalization and subsequent implementation throughout computer technologies of non-algorithmizable processes and subject areas. So we can conclude that high quality in this area is possible.

Now the main thing that is necessary is to understand how safe such an impulse will be for humanity, the established system of norms and institutions.

Despite the fact that artificial intelligence, as a scientific area, is the source of a great diversity of principles and paradigms, methods of data processing, semantic methods and technologies are currently the most advanced and promising. In particular, algorithmic methods for creating intelligent systems based on formal-logical models, in a general sense, represent the way to create syntactic structures that do not carry information about the content and meaning of data, and therefore systems based on these models can hardly be called intelligent.

Today, the efforts of all professionals to create intelligent expert systems are aimed at the formal expression of such objects as “inference”, “meaning”, “knowledge” and, based on the practical awareness of the limitations of classical methods, experts increasingly come to understand that without semantic methods and technologies further progress in the field of artificial intelligence will be impossible. One way or another, it became clear that without these methods, intelligent systems would be just a game of imitation of communication, argumentation, understanding and purposeful action. Moreover, the limits of this imitation have already been achieved. A good example is the “intelligent” chatbot, which for the first time managed to pass the Turing test “at the tests, organized in 2014 by the University of Reading (United Kingdom). At the same time, in order to hide the semantic errors associated with the patterned nature of the system, based on statistical methods of syntactic information processing models, the developers came up with a legend according to which the program is a 13 year old boy from Odessa who does not speak English well.”

Despite the fact that the first Eliza bot was written in 1966, we still cannot talk about tremendous progress in this direction. In particular, the bot still works by certain instructions and relies on pre-formed keywords “understood” by the bot. Each command must be written by the programmer separately using regular expressions or other forms of string analysis. If the user does not use keywords, the bot responds with messages like “sorry, I did not understand.” At the same time, despite limited functionality, such bots sometimes can be effective. It often concerns electronic legal systems and electronic lawyer systems, since the dialogue between users is served by much greater standardization and formalization.

In addition to bots, search, engineering, economic, medical and military systems with elements of artificial intelligence, intriguing enough, especially for scientists, is the creation of automated systems for identifying and prioritizing research projects in terms of socio-economic development. In particular, according to academician Igor Sokolov, the director of the Research Center “Informatics and Management” of the Russian Academy of Sciences, separate fragments of this system are already used by the Russian Foundation for Basic Research and some industrial enterprises.

The main benefits of the implementation of AI should be noted:

• automation and widespread cost reduction;
• the emergence of autonomous transport and robotization;
• optimization of logistics processes and supply chains;
• optimization of energy and transport networks;
• development of sensor networks and monitoring of agriculture;
• development of information services and a distributed economy;
• development of personalized medicine, clinical practices and infrastructure for distributed and secure access to medical data;
• the emergence of personal educational trajectories and the development of social engineering;
• creation of autonomous weapons systems.

Of course, large-scale technological development within these areas and the introduction of relevant results in various aspects of socio-economic practice without proper scientific and economic expertise brings some potential risks.

So, according to many forecasts, AI will already surpass the human intellect by 2035-2050. However, as we noted at the beginning of the article, the current results, despite the seemingly impressive character, are more likely to be in the area of imitating of intellectual activity or performing easy algorithmic tasks. Therefore, in our opinion, these dates can be significantly postponed.

“A positive trend in the development of society is possible,provided that the state authorities are able to adapt to the new conditions of the information society.”

Recently, there is an opinion in the expert community that AI systems will deprive people of work. In this case, the restructuring of the labor market, the withdrawal of professions related to the same type of processes and standardized physical manipulations, and the reduction of the working day are obvious. But, despite this development of AI systems, undoubtedly, new, creative and highly skilled professions will arise. Thus, the thesis about increasing social inequality in connection with the introduction of AI seems to be incorrect, since the emergence of such professions (provided timely and efficiently organized retraining of personnel and equitable distribution of large additional funds raised from productivity growth and cost reduction) will help to overcome the era of alienated, mechanistic labour and to make the work of interacting with AI systems less complicated and more fascinating.

The speed, scale and impact of change on the entire systems of the fourth industrial revolution are unprecedented in human history. The challenges and risks of the modern technological paradigm of human development, its social costs, consequences and contradictions are also great. Creation of new business models on the basis of information platforms of demand and supply, strengthening of control over society and personality by the state, radical change of mechanisms of interaction of the state with civil society, development of competition and decentralization of power, creation of artificial intelligence—all these can lead to significant progress in the development of society and its degradation. A positive trend in the development of society is possible, provided that the state authorities are able to adapt to the new conditions of the information society.

Bibliography

• Braudel F. / Material civilization, economy and capitalism, XV-XVIII centuries. T. Structures of everyday life: the possible and the impossible / 2nd ed.; tr. from fr. L.E. Kubbel; entry art. Yu.N. Afanasyev. -- М.: Publishing House “Ves Mir” (All the World), 2006. – p.592.
• Virginsky V.S../ Essays on the History of Science and Technology of the XVI - XIX Centuries - Moscow: Enlightenment, 1984. – p.287.
• Grammar of Civilizations / Fernand Braudel; Preface M. Emar; tr. from fr. - М.: Publishing House “Ves Mir” (All the World), 2008. – p.552.
• John Bernal/ Science in the History of Society - Moscow: Foreign Literature Publishing House - 1956, p.738.
• Klaus Schwab / Fourth Industrial Revolution / Moscow: Eksmo, 2016, p.208.
• Kurzweil Ray / Evolution of the Mind; Eksmo - M., 2015. – p.352.
• Michi D., Johnston R. / The computer is the creator; World - M., 2011. – p.255.
• Osipov G. S. / Lectures on artificial intelligence; Librokom - M., 2014. – p.272.

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The Fourth Industrial Revolution Essay

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The Fourth Industrial Revolution

Changes in technology, adapting to technological changes, challenges posed by the fourth industrial revolution, preparedness in society, real-life examples, recommendations.

The term the Fourth Industrial Revolution was coined by Professor Klaus Schwab who is an executive chairperson. The definition describes the world where individuals move between digital realms and offline reality by using connected technology. The First Industrial Revolution transformed the lives of people from the handicraft and agricultural economy to the one that was dominated by machines and industries. The emergence of the industrial revolution meant that information technology became the main engine that was used to automate all forms of production. Although scholars classify each industrial revolution differently, the fact is that they comprise a series of events that were built upon the innovations of the previous revolutions (Schwab, 2017). This sequence of innovations led to the advancement of the forms of production in all economic sectors.

The Fourth Industrial Revolution was written in 2017 by Professor Klaus Schwab who is an authority in leadership matters. He has a doctorate in economics and a master’s degree in public policy and has received several awards both nationally and internationally for his prominent work. The book contains relevant information because it concerns issues that are pertinent to society. The writer mainly focuses on how new technologies driven by artificial intelligence are changing all social spheres (Schwab, 2017). The way everything is done today has changed drastically due to new technologies that drive governments, individuals and organisations.

The book begins with the discussion of the major revolutionary trends starting with artificial intelligence, the biotechnology of the autonomous vehicles, nanotechnology, the Internet of things and robotics. The author does not emphasise individual technologies but rather the overall changes that the Internet has presented to society (Schwab, 2017). He states that the transformation has not penetrated into society comprehensively because the revolution has just begun (Schwab, 2017). Leaders in different sectors try to institute changes in the structure of their organisations so that they could utilise the benefits of changes. The rest of the book unravels broader opportunities and challenges for society, business, governments, individuals and other institutions globally (Schwab, 2017). The author strives to answer the concerns of the majority of people whether the revolution will lead to massive unemployment or create prosperity (Schwab, 2017). The outcome is predicted to be a balance between technology and human workforce.

When one hears the term an industrial revolution, they think of the emergence of railroads and the steam engine invented in the 1800s. When compared with the previous transformations, the current changes are transforming the world but rather in a more common way. It is moving on a larger scale and, at the same time, more rapidly. Such contemporary technologies as self-driven cars are part of the Fourth Revolution. According to Schwab (2017), even those areas that were not touched before have joined the technological advancement, thus producing outcomes which could not be imagined a few years before. Since the revolution marks the start of a new period, everyone needs to have a deep understanding of what it will mean to human life.

This is upon everyone to be privy to the current changes and adapt to them so that no one stagnates. Schwab (2017) does not only highlight the changes the Fourth Revolution will bring to day-to-day operations but goes ahead and gives suggestions on what one needs to do so that they could receive maximum benefits from such transformations. The main message that the author wants everybody to understand is that collaborative growth is vital in this era of new technologies (Schwab, 2017). Schwab (2017) further says that, after leaders have addressed all the obstacles new technology brings, they should utilise them for the advantage of people. Thus, the Fourth Industrial Revolution is a comprehensive and fascinating dialogue highlighting challenges and benefits that the transition to advanced developments will make available (Schwab, 2017). People who are in a dilemma with unanswered questions will have their issues resolved if they read this book because it addresses all the concerns about the uncertainty of new technological territories.

The term revolution means a sudden change in the manner of doing things. The Fourth Industrial Revolution, therefore, performs the same functions since it covers the territories that were not known before (Schwab, 2017). At the same time, the previous revolutions mainly concentrated on computer control, mechanisation, automation and mass production while the fourth one entails a range of both existing and new technologies. Furthermore, the changes will be across all the economies and industries, which means that various stakeholders will be affected (Schwab, 2017). The book surpasses being an introduction of a term but goes further and addresses social concerns and what can be done to ensure that this new phenomenon becomes exciting and is embraced by humanity.

Professor Schwab has been at the epicentre of the affairs affecting people for more than four decades. Through his book, The Fourth Industrial Revolution , he authoritatively explains that the world is at the beginning of a revolution that will tremendously change the way human beings are currently living, working and relating to one another (Schwab, 2017). The book considers the issues that are relevant today and gives insights on how individuals can handle the future that is unfolding at a high rate (Schwab, 2017). The author gives finer details on how people’s collective responsibility can ensure that everyone accrues the benefits associated with the current changes (Schwab, 2017). Prior industrial revolutions freed humanity from relying on animal power to perform their duties. Through information technology, people developed digital capabilities that made mass production of goods broader and easier. However, according to Schwab (2017), this revolution is profoundly different from the previous one. It consists of several technologies that combine the digital, biological and physical worlds, which affect all the sectors of humanity.

Industries and economies will be immensely affected by the transformation to a level where it questions the existence of humanity. Schwab (2017) argues that the revolution has led to changes, disruptions and shifts, which means that individuals live at a time full of great peril and promises. As the author notes, the world is now capable of connecting billions of people to the digital platform, thereby improving the operations of organisations, governments and individuals (Schwab, 2017). Even assets are managed in a manner that engages the natural environment, which undoes all the misdeeds of the preceding revolutions.

However, as an ambiguous idea, the hypothesis is presented that some organisations might find it difficult to familiarise to the immense changes introduced by the digital transformation. Schwab (2017) remarks that governments are likely to be unwilling and unable to regulate and employ new technologies to capture the benefits associated with the new beginning. In addition, the shifting power will create unique security concerns; societies will fragment, and inequality will widen (Schwab, 2017). The author goes further to put the recent changes in technology into the historical perspective by outlining the most important technologies that drive the Fourth Revolution (Schwab, 2017). He discusses the impacts of new technologies on civil society, businesses, individuals and the regimes and provides reasoning on how these interested parties should respond (Schwab, 2017). At the core of his analysis, the researcher is convinced that the Fourth Industrial Revolution is under control as long as there is collaboration across all the sectors, geographies and disciplines (Schwab, 2017). Working together is necessary and critical so that the opportunities gained could be easily accepted and exploited for full benefits.

Due to the imminent changes and challenges the revolution will bring, cooperation between citizens and leaders is considered beneficial to shape the future that will work for them. Schwab (2017) states that all individuals should be empowered and constantly reminded that new technologies are made by people themselves and for their advantage, which is a good opportunity that needs to be seized. The author argues that the pace at which individuals, organisations and governments embrace changes is crucial (Schwab, 2017). If they are slow to adapt, their very existence will be in jeopardy. The technological changes have prompted the author to raise the issue at the World Economic Forum Annual Meeting that was held in 2016 (Schwab, 2017). At the meeting, one of the main agenda was to learn the current technological advancements and how people can benefit from the transformations brought by the revolution.

Schwab further explains that modern technological progress will have immense impacts on society (Schwab, 2017). The effects include inequalities because the labour market is biased towards people who have technical skills. Another impact is the emergence of society referred to as self-centred (Schwab, 2017). The belief that one belongs to society will be defined by personal interests and values rather than work and family norms. The author argues that the Fourth Revolution is different from the previous revolutions in terms of complexity, scope and scale. (Schwab, 2017). The idea is promoted that individuals have ample opportunities to shape the revolution because there is no another way humanity can go without adjusting.

The book says that artificial intelligence is already in use and ranges from the operation of drones, supercomputers, 3D printing, virtual assistants, wearable sensors, DNA sequencing and minute microchips to smart thermostats. These are systems that control the way businesses and operations are run. Therefore, Schwab (2017) explains that the changes in technology are already in operation, although most people have not seized an opportunity to capitalise on this (Schwab, 2017). The author outlines his ideas boldly on how transformations can be harnessed to shape the future for the benefit of humanity (Schwab, 2017). He remarks that one of the advantages of technology is empowering individuals rather than replacing them, as most professionals argue (Schwab, 2017). Technology makes societies progress rather than disrupts them, and innovators of such changes respect the ethical and moral norms of introducing transformations. Therefore, the thesis is offered that everyone has a chance to make contributions to the development of society due to new technologies.

In the book, the framework is offered, which leaders in any sector can use to meet the challenges posed by the changes and maximise on the profound adjustments. Schwab (2017) has had a deep understanding of this topic for more than forty years of uniting civil society, the private sector and the government, which gives him hands-on experience on the issue. The author begins a discussion on how each person can ensure that the revolution is for the advantage of humanity (Schwab, 2017). During this revolution, organisations that will survive are those that are driven by values and purposes because this is through these attributes that they can grasp the benefits of economic, social and technological changes.

Although there is social excitement due to the changes the revolution will bring in control over countries, industries and companies, history teaches that any major disruptions to the economy come with other implications. According to the researcher, some of the effects of the revolution include political and social changes that require different ways of organising, thinking and working (Schwab, 2017). Thus, this is important for the revolution to act as an eye-opener so that nobody could be lagging behind because the consequences of not conforming are dire.

In Schwab’s book, the beginning of the Fourth Industrial Revolution is explained comprehensively. This stage of human development is presented as the phenomenon that alters the way goods are manufactured from smart industries, synthetic biology and autonomous operations. The other changes include how people communicate with quantum and ubiquitous computing. Schwab (2017), therefore, proposes that new ways of doing things have to be formulated to guide people through the revolution. Everyone has the responsibility of others to positively contribute to harnessing the benefits of the existing transformations.

Intelligence machines play a major role in any conversation regarding the Fourth Revolution. For most people, this is one of the concerns of the new wave of technology. The changes have, therefore, aggravated the already existing fears in society about the role of human beings in the future workforce. Schwab (2017) discusses this topic in detail and tries to dispel the concerns that the workforce in factories will be replaced with robots. He explains that industrial facilities are developing ways in which computer applications will work together with the traditional workforce (Schwab, 2017). The author states that the rapid increase of intelligent machines does not pose a dilemma on whether computers will replace human beings or not (Schwab, 2017). He articulates that contrary to common beliefs, the revolution will enhance workforce capabilities (Schwab, 2017). Thus, leaders should start preparing their employees and cultivate a model where they will work with robots.

The major concern arising from the analysis of the book is whether society will be able to control the new wave or not. Although the revolution has the potential of changing the way people work and live, its success lies in the combined efforts of citizens, governments and organisations. Schwab (2017) argues that if the authorities fail to promptly regulate and employ the revolution technologies, and organisations fail to adapt, society will face severe problems. By considering this issue, the author requests citizens and leaders in different fields to reshape the future by providing the conditions under which people come first (Schwab, 2017). To ensure that individuals are given priority, they should be empowered and reminded constantly that new technologies are for the common good.

The Fourth Industrial Revolution is majorly driven by the levels of development in science, biology and digital technology. The First Industrial Revolution changed the world, particularly the means of production, by replacing humans with mechanical power driven by a steam engine. The Second Industrial Revolution made mass production possible through the invention of assembly lines and electricity. The Third Industrial Revolution was mainly powered by the Internet and digital computing, which automated the production process. According to Schwab (2017), the Fourth Revolution advances these technologies but does not eliminate their use. Therefore, the existing and new developments will be utilised alongside each other.

The book is a worthwhile toolbox that can help governments and individuals to manoeuvre this endeavour. The Fourth Industrial Revolution clearly describes how innovations in technology have shaken societal and industrial fundamentals. Schwab (2017) explains the main 23 shifts that every human is going to face. Although the author talks about technological changes in society, the book is not about technology since the information in the author’s mind is about people, their intelligence and the qualities that are needed to utilise the revolution (Schwab, 2017). The researcher makes clear points on how diversity is essential because this is one of the most vital resources for everyone (Schwab, 2017). He states that good leadership, including contextual intelligence and personal health during this transformational period, is pertinent (Schwab, 2017). Schwab (2017) further explains that the treasure trove of data, the powerful visions for humanity and unique insights will be highly required to meet the challenges of the revolution. One of the theses is the idea that for any individual or organisation to remain relevant, massive adjustment is required.

The fact that the Fourth Industrial Revolution is moving at lightning speed is understood because today, the world is closely interconnected and rich in technology. The transformation has an exponential evolvement; however, this does not happen linearly. For instance, Schwab (2017) offers to consider a smartphone: the iPhone was invented in 2007, but by 2016, a mere nine years later, there were more than two billion users of smartphones. Within the same period, the smartphone technology developed to unprecedented levels that would not be thought of in 2007 when it was invented (Schwab, 2017). Thus, technologies are transforming the world at a rate that was not expected.

In his book, Schwab (2017) takes readers on a tour of the economic, social and technological revolutions. The writer explains the opportunities and challenges that humans can face in the near future. The book is written in bullet points, which is the method that is commonly used by think tanks when presenting their reports. The author does not provide many discursive arguments, opinions and illustrations. Schwab (2017) utilises the executive jargon that is specifically meant for those leaders who wish to know how to navigate the period of rapid disruptive changes. As an essential argument, the suggestion is made that for people to overcome the challenges of disruptive changes, they should avoid linear thinking.

The best approach that may help people overcome the difficulties is to formulate new forms of employment and social contracts. Schwab (2017) makes his position known when he challenges individuals and organisations that face the revolutions to design news ways that will accommodate the adjustments. The journey will require the honesty and flexibility of organisations to inculcate agility and speed in their operations. To understand the aim and purpose of this book, one needs to consider the work of Davos. Most of his writings have a holistic approach to what is currently happening in society and what challenges are anticipated (Schwab, 2017). The book enlightens readers so that they could have a deep understanding of the fourth revolution.

This is a book that is recommended for reading because it offers readers to assess different benefits and challenges that people are expected to encounter during this revolution. It shows that the Fourth Industrial Revolution leads society to unfamiliar territories. Therefore, one needs to be prepared by having a deep understanding of what the current transformations entail and how one can capitalise on it (Schwab, 2017). Leaders need to know how to cushion society from this new disruptive technology because it will change the way people live today.

The book in question is useful to read to understand how society will adapt to the changes that are taking place today. Other forms of transformations will occur at the workplace and at the family level, thereby proving Schwab’s (2017) assumptions about the implications of the revolution on everyone. Therefore, one should read this book to understand the scope of changes and the measures to mitigate some potentially negative implications. In addition, the economic and political scopes of people will be affected, and the book contains relevant discussions. As Schwab (2017) notes, after one gets equipped with this information, they will be better placed to design strategies that will prevent them from the negative effects of transformations. Therefore, the book may be of interest to those who are eager to know where they are heading to as both individuals and society members.

The book is valuable for policymakers, corporate leaders and citizens who want to gain the skills on how to navigate the challenges ahead, which have been brought by the changes in technology. Schwab (2017) argues that the profound transformation explained in the book will affect all the sectors of society handled. The information in the book reminds society that through collective power, the revolution is sustainable and inclusive. The digital tools applied will define how individuals conduct their businesses and identify global issues, for instance, climate problems (Schwab, 2017). Technology will be the key factor in determining how humanity will live.

As a result, for a good understanding of how society is changing technologically, this is the best book to read. Schwab (2017) uses a language that is easy to understand, and the examples given are relevant to contemporary society, which makes the book a useful source of information. The author is an authority in the field of leadership and has been dealing with governments, civil society and the private sector for more than forty years. Therefore, most of the information is based on Schwab’s (2017) personal experience. If one wants to enter the future while informed comprehensively, they should read this book.

The book addresses pertinent transformational matters that have already begun affecting individuals, organisations and governments. Therefore, all the social sectors need to adjust the way they operate so that they do not find themselves in a situation when they cannot function properly. If all the spheres get prepared in advance, this may simplify the transformation process, and technological changes can bring essential gains to utilise for the benefit of human development.

Schwab, K. (2017). The Fourth Industrial Revolution . Broadway Business.

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Bibliography

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4th Industrial Revolution: Essay & Important Notes

Evolution of the fourth industrial revolution.

The Fourth Industrial Revolution finds its foundations laid on the third industrial revolution. With the changing technologies and innovations being made throughout the different revolutions, the fourth revolution was bound to take place. The term Fourth Industrial Revolution was coined by Klaus Schwab, the founder and executive chairman of the World Economic Forum.

Technologies Driving Change in the Fourth Industrial Revolution

The 4 th revolution is dominated by a myriad of technologies. These include:

Artificial Intelligence

AI is being used in many ways in different aspects of life. AI can recognize complex patterns, reach voluminous information, and also take decisions on a logical basis. The advent of AI has reached a level wherein people can control appliances in their homes by just giving instructions.

Blockchain is a secure and decentralized manner of recording and sharing data. With this technology, it is possible to improve and track the supply chain, secure sensitive data, and also combat frauds. The best example of this technology being uses these days is the use of cryptocurrency.

Virtual Reality and Augmented Reality

These technologies enable people to experience anything digitally. The use of these technologies has enabled people to overcome the boundaries between the virtual and physical worlds. A good example is how many stores allow their customers to try and experiment with products before making a purchasing decision.

Biotechnology

Biotechnology has made it possible to develop new medicines and drugs to cure life-taking illnesses. These have also made it possible to process and produce cleaner and greener energy, thereby enhancing the chances of a sustainable world.

The design and use of robots for personal and commercial purposes have become commonplace these days. Robots are being used in several industries to enhance efficiency and productivity and reduce human effort.

Internet of Things

Internet of Things has made it possible to connect devices used daily with the internet. With the help of IoT, it has become easy to track different aspects of businesses and industries. An example is the use of IoT by farmers to monitor the quality of fertilizers.

Pros and Cons of Fourth Industrial Revolution

The Fourth Industrial Revolution has brought several advantages for society and businesses including:

• Increased productivity
• Improved quality of life
• Lower barriers to entrepreneurship
• New markets for businesses

However, the industrial revolution propagated by technology also has some cons too. These include:

• Inequality: The industrial revolution is beneficial for those who have access to the technologies and can use it for their benefit in the right way. People, businesses, and societies that cannot access technologies lag behind others and cannot benefit from the revolution in any manner.
• Cybersecurity risk: With the increasing technological innovations, the threat of cybercrimes has also increased. Gadgets, robots, computers, and every technology are prone to attacks by unknown people.
• Increased competition: The advent of technologies and their subsequent use in different industries and businesses has increased competition and businesses have to do more to survive the competition. Additionally, it also brings forth the issue of ethics as businesses make use of any means to survive the competition.

The Fourth Industrial Revolution radically impacts the daily life of people. The era can be that of knowledge, growth, and improvement in the manner in which people, businesses, and societies work and operates.

Important Notes

• The Fourth Industrial Revolution is dominating the society and businesses of today.
• Technological innovations have brought about changes in the way people live and carry out everyday activities.
• There are many advantages of the Fourth Industrial Revolution as it brings about improvements in the lifestyle and also improves productivity.

With the increasing use of technologies, there are issues related to ethics and unequal access to technologies

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