The Fourth Industrial Revolution will take center stage at the World
Economic Forum’s (WEF) annual meeting next week in Davos, Switzerland.
The concept, a theme of Davos this year, refers to how a combination
of technologies are changing the way we live, work and interact.
Klaus Schwab, founder and executive chairman of the Geneva-based WEF,
published a book in 2016 titled “The Fourth Industrial Revolution” and coined
the term at the Davos meeting that year.
Schwab argued a technological revolution is underway “that is blurring
the lines between the physical, digital and biological spheres.”
Simply put, the Fourth Industrial Revolution refers to how
technologies like artificial intelligence, autonomous vehicles and the internet
of things are merging with humans’ physical lives. Think of voice-activated
assistants, facial ID recognition or digital health-care sensors.
Schwab argued these technological changes are drastically altering how
individuals, companies and governments operate, ultimately leading to a
societal transformation similar to previous industrial revolutions.
The first
three industrial revolutions
Zvika
Krieger, the head of technology policy and partnerships at WEF, told CNBC on
Tuesday there is a common theme among each of the industrial revolutions: the
invention of a specific technology that changed society fundamentally.
The First
Industrial Revolution started in Britain around 1760. It was powered by a major
invention: the steam engine. The steam engine enabled new manufacturing
processes, leading to the creation of factories.
The Second
Industrial Revolution came roughly one century later and was characterized by
mass production in new industries like steel, oil and electricity. The light
bulb, telephone and internal combustion engine were some of the key inventions
of this era.
The
inventions of the semiconductor, personal computer and the internet marked the
Third Industrial Revolution starting in the 1960s. This is also referred to as
the “Digital Revolution.”
Krieger said
the Fourth Industrial Revolution is different from the third for two reasons:
the gap between the digital, physical and biological worlds is shrinking, and
technology is changing faster than ever.
Left behind
Companies,
governments and individuals are struggling to keep up with the fast pace of
technological change.
Krieger, who
served as the U.S. State Department’s first-ever representative to Silicon
Valley from 2016 to 2017, said technology is often missing from policymakers’
“toolkits.” As a result, he said, companies are left filling a void trying to
understand how to implement — and regulate — advancements like A.I.
“There’s an
absolute hunger for concrete things companies can do,” Krieger said.
Jordan Morrow is the head of data literacy at analytics firm Qlik. He
said individuals and companies lack skills, like interpreting and analyzing
data, to successfully compete in the Fourth Industrial Revolution.
“Not everyone needs to be a data scientist but everyone needs to be
data literate,” he said in a phone interview with CNBC.
Studies show technologies like artificial intelligence will
eliminate some jobs, while creating demand for new jobs and
skills. Some experts warn of a “winner-take-all economy,” where high-skilled
workers are rewarded with high pay, and the rest of workers are left behind.
A 2018 report by investment firm UBS found billionaires have driven
almost 80 percent of the 40 main breakthrough innovations over the past four
decades.
In 2016, Schwab predicted inequality would be the greatest societal
concern associated with the Fourth Industrial Revolution.
“There has never been a time of greater promise, or one of greater
potential peril,” he said.
Source: CNBC