Strategic Outlook The Digital Economy

okay so let's get started so good morning everybody welcome to welcome to the World Economic Forum annual meeting 2018 welcome to - the room here and congratulations well done everybody for getting here I know it hasn't been easy I think the fact that you are all here is testament already to your resilience and courage and lots of other great great great attributes so we're gonna start off with a great discussion here in a second I just wanted to very quickly contextualize it a little my name is Jericho Halloran I am with the World Economic Forum I run one of our 14 system initiatives and which are platforms to create impact in the world and this we're going to hear today some examples of some great partnership and impacts and that is ongoing this is part of this broader initiative that we'll hear a little about and but we certainly encourage all of you to come and learn more about and be part of as we go along you know this week we're talking about creating shared futures in a fractured worlds I don't think anywhere this is more relevant more pertinent than in this topic here digital economy and society can feel like a very big big and broad topic however so what is it we're trying to achieve it's very clear in some other areas like environment we have targets or food security we know what good looks like and so with digital economy in society we've identified six key shared outcomes that we are encouraging partnership and collaboration around and these are things that may not be exhaustive but three things there are things that we know we have to get right if we want to create a digital future that is sustainable inclusive and trustworthy and so just very quickly to give you that frame before handing over to our excellent panel here the things we know we need to get right number one we need to people need to have access to the Internet and it needs to be accessible to them secondly we need to help organizations go through a responsible business transformation at a scale and speed that's never been seen before third we need fit for purpose and we need informed policymaking the games the game is changing the rules needs to change the way we make the rules need to change fourth we need security and resilience baked into organizations and practices and people fifth we need to have robust and open and inclusive identity and access systems if the future is digital and we want to be inclusive but then everybody needs to be able to access the services in appropriate way and finally so many of the opportunities that we talk about in the fourth Industrial Revolution are based on the idea of sharing data and sharing information but this is what we all know highly problematic today so finding ways to enjoy the benefits of sharing data about protecting privacy security transparency and other values it is the other key outcome so with that and that's at a very high level we're gonna have a great discussion hear from people who are actually leading working initiatives on this and some related areas like employment and skills I'm gonna hand it over to our moderator par excellence Lin Sante more and I hope you enjoy their discussion thank you Thank You Derek I'm just going to do a very quick introduction to panelists here we don't want to take an awful lot of time because we have a lot of ground to cover in the very short hour we have Michael Gregoire who's sitting directly across from me who's a CEO of CA Technologies and he's also the incoming chair of the IT governors community we have Neelie Kroes who was a former EU commissioner and former open data Institute board member and also is leaving the future Agenda Council here on innovation and entrepreneurship at the form we have chuck Robbins who's a CEO of Cisco and is the outgoing IT governor's chair and to my right is Gavin Patterson who's the CEO of the BT group and he is the chair of the telecom governor's community and to my left is Jim Smith who is the the president CEO of Thomson Reuters he also is the co-chair with me of the forums digital economy and society initiative here so well dispense with further introductions later and I think is Derek said obviously the West theme here is creating a shared future in a fractured world this particular session objective is to actually share the impact agenda for the World Economic Forum focusing on the activities of the past year but looking forward to 2018 and trying to identify those small number of areas that are the most important and most importantly is work that the the forum can actually do to help drive significant sustainable change in the industry so well we'd actually like the panelist to address here today is to talk about how will industries innovation and institutions shape the future of the digital economy so I'd actually like to start with Chuck as the outgoing chair of the IT Governors community and specifically ask you what's the top issue that's on your mind and that's keeping you up and then Mike I will come to you as well as the incoming chair again of the IT governors community here at the farm Chuck Thank You Lynn and Mike looking forward to passing it off to you today I understand I mean you know this is this is an incredibly important topic and there are I think we all know there are phenomenal positive impacts from this move to digital in the economy and then I think there's a huge number of responsibilities that actually fall back on and in my view the business community and and the institutions that we all represent and I think that just a few of them that we can dig into more of them more effectively I think it is it is our responsibility to try to optimize access to to the benefit and of the digital economy and I think that that's through extending broadband extending education healthcare and everything into the you know the remote areas of the world which we've all been focused on for many years the second I think is really important is embracing new sets of partnerships I think this is going to really be key for us and I think that includes sometimes competitor actually partnering together to to actually help bring some of the benefit of Technology to society and/or help solve some of the challenges that some of the technology may actually present and those are public private partnerships competitive partnerships just completely foreign types of partnerships and then I think the the third is really dealing with this issue of security and Trust and that includes privacy and includes cross data border manage our cross border data management and many other issues and I guess the last thing I would say is ensuring that we're providing all of those people around the world with the opportunity to gain the skills needed to actually operate in this new world so those are some of the top of my thoughts for me as we move into this discussion thank you well two years ago when Chuck took over and I was on the committee one of the things that he did that I thought was this was leading as he said I don't want to just produce content we have to put something tangible in place and the biggest problem we had or the biggest problem we all agreed on was this disassociation between the people who understand technology and the people who don't and he couldn't have been more right because he fast forward just two years later no this is absolutely positively top of mind so we need to change the narrative of tech you know just because you can do something doesn't necessarily mean you should so forcing that conversation in place and then us as tech providers leaning into the problem and helping people who are disassociated with tech get the skills so they can participate in it so you go from I don't play golf to I'm a struggling golfer we need to find a way to get people into tech where they just don't disassociate ourselves Alecto because they find it's too hard it's too expensive and they don't feel like they have an opportunity so we're trying to do is get a consortium of companies that have content together and we're not targeting the K through 12 although that's incredibly important we're targeting people have been working for about five years that tech is starting to you know get in the way of that earning a living now the date on this is getting pretty astounding I just came out last Friday there's be 6.6 million jobs dissociated over the next 10 years the thing that shocked me though is how little blue-collar workers as a percentage they're getting disassociated that's already happened there's going to be four million typical white collar office workers that are not necessarily digitally astute that are going to be replaced by technology I think if we don't get in front of that those aren't only us numbers I don't if we don't get in front of that and help these people be part of a productive working environment I think that there's going to be a lot of social unrest there's some very interesting points and some very I think sobering so bring ones as well I'd like to move next to Gavin the you know the chair of the telecom governor's community which of course represents the telecommunications interesting some of the world's largest players in in driving and developing infrastructure development for the digital economy so what are their biggest concerns or issues that you see for the new year well you might be surprised that some of the themes that Mike and Chuck have mentioned already a a front of mind for roads so they're probably three in particular I'd call out firstly the case for investment is a huge investment required around the world of the order of ten trillion dollars over the next ten years and the the case is there there's no question about the opportunities that it is going to create er for people but ensuring that there's a framework that makes the investment makes sense it's able to attract private capital and that the people putting that capital to work are able to make a fair return so the opportunities around five G around five to the home IOT pretty endless I think at the moment but making the business case work is something that we we've we've struggled with I think secondly this theme around cyber affects everyone it's not just people in the tech space you know it's it's a top three risk I think on it virtually every board and every CEO I talk to and the sophistication of attack is just getting more and more difficult to combat and the I think the only way forward is through collaboration I mean the comments that both Mike and Chuck made around partnership sharing best practice sharing data it's absolutely critical in a world where we're under an increasing threat and in you know if I look at our own network we get a tempted cyberattack once every second at the moment so it gives you some sense of the the challenge we face and I think the third issue is around skills there is a you know there's a real shortage of tech skills around the world there's no question about that we're not producing enough students apprentices graduates that want to go into tech and more broadly we believe certainly that tech is going to be part of everybody's job going forward and we need to make sure that it's part of the curriculum in the way that reading and writing arithmetic you've always believed because without it you know we're not going to be able to realize the opportunities that lie ahead of it so I think there are many common themes and it will be good to work together gentlemen there's such a large percentage of the world that still doesn't have access to the Internet and then of those that do of course have either inferior access to the Internet or very expensive and we talk about trying to close some of the other digital divides that exists in the world this is obviously such a such a critical critical space and a lot of the efforts such as whether it's investment infrastructure investment or skilling really needs to very quickly roll out to those other parts of the world or we're just accentuating the current set of divides and in the - sure as well known to everybody here on the panel I could turn now - I'm Jim Smith Jim and as I said earlier our co-chairs of the forum's initiative here on the digital economy and society so I'd like to ask Jim what are the top issues that he thinks the forum should be addressing and is on the mind of the stewardship board yeah well it's excellent it's been fascinating over the last I think four years at Davos to come and see the recognition particularly in the industry groups and we've heard from three industry leaders here in the tech industry about the recognition of the digital revolution and then a year later there's wow this could be profound and then it was like the next within three years it was with - oh my god how are we going to react to it our doesn't change our business models the competitive landscape everything and in every single industry vertical and and every working group here related to business has a stream on digital disruption and how it's going to disrupt their industry and you know we live in a world now where seven of the ten most valuable companies in the world are tech companies yet at the same time we're seeing a growing tech backlash in fact as people are concerned about what this technology revolution is likely to do to their employability as we see them we'll worry about what it's going to do to their privacy as we see people worried about what it's done to the trusted sources of news that they relied upon and the information that they consume every day how reliable is that now I think we've also seen that that in a world where so much fracture is driven by the economic divide between the haves and have-nots we now have a tool that could be very powerful but also could exacerbate that divide between those who have access to the new world and those who don't so I think what we're trying to do through the systems initiatives and and Derick did a very good job of outlining the very six themes but it's to organize a public-private dialogue around these various issues and I think there's some of the things I'm most excited about in the coming year would be an extension of the of the access for all initiative that we've seen have some really promising results in places like Rwanda and and other and other places around the world I think we're going to be doing a lot of work around this issue of digital identity because digital identity is foundational to so much of the dialogue around access around authentication around trust and around privacy as well and I think this notion of cyber of the forum open to cyber security Center last year as Gavin said it's absolutely top right quadrant for every CEO in the world and I think becoming top right quadrant for everybody's worried about their personal data as well so I think there are a number of very interesting initiatives and III think they'll with digital identity as a fad as a building block I think the tough thing will try to balance and I think we'll dive pretty deeply into that that tough bit between trusted access to the Internet and and and and the protection of privacy at the same time and it's gonna be a very difficult balancing act and I would hope that the forum would be a good place to have that public/private dialogue because we are also seeing in addition to a public backlash the beginnings of a pretty fractured regulatory backlash with everyone trying to attack it attack it their own way and I think one thing Lynne and I have spoken about a great deal in this initiative is let's let's let's operate on the first do no harm initiative here and make particularly when it comes to regulation thank you Jim that's very very interesting way so I said that's a good sir I am going to segue to and but I also want to give him what he here in the room a heads up that we will actually turn to the floor shortly and we're not looking for statements from the floor we're really looking for question answers to the question of what are the main challenges or opportunities you see that could affect the shape of the digital economy in the coming years so if you could prepare some concise brief questions and we will take a number of those and then we'll come back to the panelists again to respond to those or to continue some of these elements forward so nearly you're a former EU commissioner from teachers were actually at the heart of so much of the digital activities here in in Europe and of course in your current role as the Global Agenda Council for innovation and entrepreneurship I wonder if you could actually comment from those two perspectives and as we said it's a nice segue to Jim's last comments with respect to regulation as well and Thank You Lynne when I was preparing for the questions we got from the organizers I was thinking of the moment six years ago or near bicycle year ago still in Brussels and I do have two granddaughters u.s. citizens living in San Francisco and the youngest at that time very young we were skyping and she was asking at certain moments Nene by the way what is your age six years ago so then you can just and I said I'm 70 and she said and you are still alive put it in a way it is ageless what we are doing and every time and I was thinking of that with some of the interventions before it's a turning point but every year we are saying now it's a turning point now we have two acts and now we have to bridge and so on but I'm aware of and with a lot of opportunities but also with new activities at the moment involved in a refugee camp in Jordan eeeh involved a noose cancer organizing new hospitals and so on it's all about the digital technology and it's opening the world so to say so for me it is number one overcoming indeed the societal resistance for you have to explain to the refugee to the one you are asking money for to the cancer patient to the parent center you have to explain what is all about what is to digital skills and lifelong learning by the way for me there is in every one Talent and whatever your location is in Africa or whatever there is talent but you have to just push the right button and you have to give the right opportunities so the digital dividing and the define the diversity that we are sometimes missing for me is a high priority with diversity and we were discussing that earlier we are just touching upon a number of people millions and millions of people talking about women and we we can just use them and give them opportunities and so on but also talking about and then I'm touching upon Lin the data flows but opting and adapting cross-border flows for that is at stake and I don't pretend that in Europe we have done that enough we are still acting there are still borders and the European Union the single market should be borderless but there are still borders for what ever reason for national reasons or whatever but with the adapting cross-border data flows to new data localization policies is the moments where we have to realize that's not a threat that is an opportunity that's a challenge so to say but you need trust you need flexible governments and that is what is all at stake talking about regulation regulation per definition is looking at the past what type of authority you are talking of it is talking about your experience of the you have to regulate having put that at stake this is not at stake anymore it's going too quickly so and there I'm just addressing all of you the business world the institution's do you have to be active in just formulating your own regulation for your own company so to say and that that is of course easy for me to say but it is also in your advantage for them talking about trust talking about opportunity that makes a lot of sense and strengthening trust in technology through the algorithm that transparency it's all about transparency people are willing to trust that they need to know what's behind it and what is done by it and their when I'm allowed to make one sentence of my worry I think that in the whole discussion and perhaps that could be taken for next year one of the issues for the World Economic Forum talking about the social media and talking about the younger generation and real young the child when we are looking and when we are listening to those explanations of the four Facebook members of the boards and of those were saying whatever the reason for that statement is that's not at stake now but that it is not without risk and when Tim Cook for example just this week was mentioning that if he would have a child he would never give the child permission to go on the social media and I think that that is just a push for us to think what is the risk at a certain moment for the younger generation and of course I'm not saying you should skip all the social media whatever that that's nonsense but at the moment when you are looking at figures how much of the time the child for example is spending two items mobile phones and so that's not an healthy issue and of course there are examples where people their children got blinds because they were too often too long looking at the screen but even taking that the site it's worse enough but we have responsibilities and then I'm addressing the business world and the institutions and not waiting for governments for governments politicians are waiting till the needs or until there is a positive advantage for the next election to get back in their office and I'm a former politician I preach and do know what is at stake but we have to take our responsibility and it can be fun too very competitive issues are at stake there too if a business is well aware that this is one of the possibilities and BT in the past did part of those talking about privacy and talking about use then of course it's difficult you have to communicate but at the end of the day you are making a lot of positive sense that's a very very provocative points they're very interesting I've spent nearly two decades in fact sort of two decades just about now on Internet governance matters and certainly have access as well and so we've always relied and a lot of those on what probably called soft policy its norms and principles as a start so you can find some common ground soft policy can become regulation appropriately in time so that would be an interesting topic to perhaps pick up on we've also heard about access and skills and training as well so I'll just put those as sort of markers for the moment and then if we can go to the floor here for again a couple of questions and then we'll bring those back in and and to one final round with the panelists so I apologize for my back to you but I don't have a belt on so I can't have this clip to me could you please identify yourself and your organization very good question thank you I'm gonna take a shot at it are you collecting neglect three or four questions I think and then we'll we'll come back around sir [Music] interesting in many of the components that actually could support that exist today but they haven't come together holistically or in a way that actually facilitates use by individuals Sabich so my questions what are the limitations of the current structural systems that if you just mentioned that within two years we can achieved what you upset okay thank you just see if there's any other questions here thank you master Makar from CIA technologists my question is around the impact on technology and digital disruption in the labor intensive markets particularly for example in asia-pacific where a lot of the economies have depended on high labor industries which undoubtedly will be disrupted by artificial intelligence and automation there very good questions see if there's one more in the back of the room here and then we'll come back to the panelists part of the global shapers community of the forum representing Pakistan and so one of my questions is really about knowing how the economy in emerge is the digital economy in emerging economies will shift like they're already trying to catch up with the third Industrial Revolution how will the leapfrog that to move to the fourth Industrial Revolution and what the strategy for that will look like thank you don't see the other requests for the floor okay and then we'll we'll come back to the panelist my name is Nikolay nikiforovich Earl of telecom and mass communications of Russia and since our our panel is mostly represented by industry leaders my question is about the your vision of the government strategy because governments compete with each other well it's a kind of a good type of competition they can beat about quality of life investment climate enhancing infrastructure development regulatory environment but what should governments really do to win this digital race how to be count how to keep the necessary speed in order to to be a part of this digital race but what what is your piece of advice for the government's thank you maybe I'll come back and I think Chucky we're actually quite keen to answer the very first question um so maybe we can talk about that a little bit which again was one of the first what are the three or four things that we came back in two years that we believe these set of activities would have addressed but also if you want to weigh in on one of the other subsequent questions as well well I thought that you know Jim you made a great point if you go back four years coming here we were talking about the Internet of Things and then the fourth Industrial Revolution and then never we quickly move to nobody's denying it's real and now all of a sudden what are the implications and the challenges associated with it and I think it's been fascinating to watch the pace at which that's occurred and I think look I don't worry at all about whether businesses or even countries or cities will figure out how to embrace the technology to drive productivity to enhance the way they operate - hopefully deal with traffic issues when he connected snow plows I think there's you know I think the I really believe that the mandate for us going forward which leads to what I think we need to set as an aspiration two years from now is that we we as protect leaders and business leaders have to actually step up and get in the middle of these issues and we can't we can't wait for government or someone else to solve these issues because it's you know whether it's working on providing educational access because every job on the planet at some point in the future we could debate how far out is going to be a technology job of some sort so providing the skills is going to be that's going to be critical and so what we could wait or you know what we've been working on the last couple years which is simply a very small platform that's actually the beginning and I think that what that represents two things number one is creating assessment and skills capabilities or access to them for some number of individuals around the world but perhaps the more important thing that it demonstrates was a number of companies who actually compete with each other who put that aside to bring our content together to actually help get at this problem which i think is going to be a fundamental thing that we have to do going forward and whether it's so that's the first thing I think the second thing is and we had a we had a meeting in Silicon Valley just about three weeks ago with 24 of the largest companies in tech and we haven't announced anything yet but I'll tell you that we we got together and it was CEOs of these companies and we were talking about how do we bring our ability to innovate and and our cash in our our strengths and everything else to actually even in our in our community to start solving issues like homelessness affordable housing hunger and all the things that occur because we we actually have the ability and we have an unbelievable desire to innovate and if we apply that curiosity and those skills and get some of these problems I think we can do some amazing things the final comment I'll make is connected back a little bit to the government side of it some of these issues have to be more clearly either understood or more pragmatically understood to actually get the right policy in place because what happens is and we all know this is ideology takes over and we end up going from one extreme to another on some sort of policy where the actually in the middle is somewhere where we need to land but we bounce back and forth depending on which party is actually making the decision and we don't actually get to the right policy that that encourages investment and encourages and that actually helps us solve these problems so I think there's a lot of things that we have to do and I think you know my top messages are that the business leaders have to step up get involved and we have to put competition aside and we got to work very closely with government entities around the world to solve these problems you would also say that given the situation that you just described in the latter part of your comments it's certainly there's a role for citizens as well in terms of maybe maybe smoothing out some of those you know whipsaws back and forth between the ideological views and and second there's an expectation família well that they have a greater voice and that they're more deeply engaged much earlier and a lot of these discussions but that's not easy to do as as we all know it's one of the things I find kind of interesting which is what are the efforts that both industry's doing plus policymakers are doing to actually engage the civil society voice the individual voice and a lot of these discussions because I think obviously it's critical at a very fundamental level I also think it's it could be very useful in terms of smoothing out some of the whipsaws we're seeing if we could find a way that more deeply and properly engage them let me go next - would you mind if I got one you know that I couldn't agree more but quite often you can feel and see that there is a gap between the policymakers and the industry and the people and policymakers pretend to be for the representative of the people but sometimes you don't recognize it to put it in a diplomatic way having said that I think that every citizen has the responsibility but also has the challenge to influence to work with policymakers so you don't need to be a policymaker to have your influence and it's not only talking about industry but there's a citizen you can just with a team of people where you have discussed certain issues you can go to your representative or you can go to your government member and get in touch with real life for them you know it's a very good point as well is there any other panelist who wants to come in on that or should we go to it a new topic maybe we can come to if I look through some of the questions we had and there were questions that was kind of the impact of technology labor leapfrogging those sorts of things we could either come back to the skills we were talking about earlier we could certainly come back to some of the other work that's occurring in the economy and society I'll come and tell them that the skills agenda because of all the points we've talked about this morning the one that worries me most is his skills I think the transformation going through the job market at all levels at entry-level retraining halfway through your career the extension of your working life you know this is the the biggest challenge I think we all face and as leaders if we don't work together to get it right the backlash that we've talked about and Jim referred to in his cards meticulous I think will get worse not better the opportunities that Tech and the Internet in general offer is huge there's no question about that but it will mean that everybody's job is going to have a tech element to it and at the moment very very few people train in tech and there are a lot of very capable people who are turned off it through the education system even though they have the raw intelligence the raw processing power and computational thinking that would would make them very good at take related jobs but somehow we've got to make it a broad Church that is that people recognize it's part of everybody's job now rather than simply programs to what so I think we need to within that particular look at the gender bias that is inherent and is limiting the the potential that we're realizing here and also building in a natural bias in to the way which we're solving some of these problems because we're not getting enough diverse thinking interest and then I think as people go through their careers you know the thought that you can have you know you train in one job and you live in you stay on that job for 50 years is clearly not the case anymore but as yet we're not seeing enough of people taking lifelong learning and taking on their own responsibilities supported by government and their employers to retrain and keep their skills relevant so that they can adapt as the job market changes you know we're not seeing that become the norm and this this is fundamentally I think the biggest challenge we face will solve the investment challenge you know we've got to work together to solve the the cyber threat that I've mentioned but it's the skills agenda and how that's going to change very very rapidly and could ultimately mean that the parts of society that are completely excluded that we've we've really got to be on the front foot for I think it's not only for failing jobs by the way it's far Brodeur it's for just a challenge for everybody now that's a very good point otherwise you risk leaving those that perhaps are out of the job market age-related behind as well it's like what you were mentioning writing and calculating it is not per se for only the job it is for your fractioning in a society and having fun and having a challenge mike is coming in to the position here in the IT governor's community here in the forum is there anything further you want to build on from Gavin's points with skills you mentioned earlier that was so critical I think I think Chuck ins and Gavin pretty much sums it up I think the most important thing is getting people into the game I think to the extent that you can't that people don't understand Tech and how they fit in there's a responsibility of both government and businesses and once again we need the people to be able to do the work you know there's five hundred thousand open IT jobs in the u.s. like there's over six hundred thousand in that EU governments are spending an incredible amount of money on it and very fragmented in the u.s. I think the the EU has done a much better job I think they put thirty billion dollars together in multiple programs to help with rece killing but if they're going to do that where's the content going to come from and I think the content needs to come from you know from business because we're gonna build the skills or show the skills that we need to run our companies not just today but in the future and to the extent that we can collaborate on that work in this private public partnership I think we have a we have a win for everybody sorry you see my voice I think it is obviously a very very critical a critical area and probably one of the areas where we've actually got a fairly good leg up in terms of knowing what we might do I mean there are a lot of other areas that that aren't quite so far advanced and maybe I'll turn to Jim to identify sure III well one thing that strikes me in the conversation here and I and I kind of take it from the Neely's challenge from the business community to get involved and we sit here as a business community and notice skills gap in technology in the business world and the badge in the skills gap on the regulatory side if we're waiting for that to be filled as well director to regulate things I think we are moving at a pace in which is going to require a different kind of dialogue to get to a sensible outcome or to a to to the to an improved outcome I would address it have two points from the questions on the floor the first what would you like to have two years from now I'd like to have the kind of concrete the kind of concrete outcomes around digital identity because I think it's foundational that we've seen how the IT governors and I salute Chuck and theme for everything that's gone on in the last two years to have a concrete proposal and not a white paper you know that comes out of the comes out of that dialogue and and really gives a tool for folks to engage and have a solution around the problem I think one other issue that from the floor and is for what it's worth I think there was a profound idea put forward that notion of who owns your personal digital data it's something we're living through this fourth Industrial Revolution a few of us lived through the prior three none of us perhaps but we have seen another phenomenon which is an incredible concentration of power amongst a handful of companies and one could argue perhaps a greater global concentration of power than in any of the prior industrial revolutions and you know that's something we're going to have to grapple with and I think the company that figures out how to empower people with their own data and to provide radical transparency to that I think it's going to be ahead of the game and and I think that's going to have to be both the public/private dialogue as to as the who's right those are and available that such a mechanism by which if you use this then in a transparent way the user knows that if my data is being used in this algorithm which is making you money I'm getting a few micro cells will benefit so I think the forum has to look at what are the technologies together and how can we get like you know sectors whether it'll universities or other organizations or the open source movement to come up with a platform which then forces these networks sort of like you know effect companies to differentiate themselves by doing it but the incentive isn't there for these companies to do it Jim brought up a good point you know seven of the biggest companies right now are technology companies maybe take a look at the top for their raw material as data go back a hundred years most important in end the largest companies or oil companies so data is the new oil if you had a farm in Pennsylvania and they were doing fracking which is a new technology you get a check every month because they're accessing something that you own eventually there will be a business model where this oil which is really data gets monetized and somehow that has to get back into the hands of the people don't it there is no business model right now similar there's no business model to help people understand you know oil 100 years ago I think that we're gonna have to evolve to it but it's gonna happen an awful lot quicker yeah I I it took a while in Europe but we are still ahead no doubt about that to accept the general regulation the general data regulation for the protection and it will be insurance from the 25th of May this year and I would advise everybody take that as a mirror and you can just make it more special or whatever but that is the base and by the way don't think that it is only happening here or in Europe or in the u.s. that type of discussion it's also happening in the Far East it's also happening in Africa and there we have to push and we have to find a way because it's global digital technology is global it's not it's worthless so to say so if this could be the base the European regulations are saying for general data protection then we know from each other what is the line Chuck I think you wanted to come in well I think that your your comment over here about when does disruptive business model emerge that actually provides some of the benefit back to the the provider of the data I suspect that as technologies like blockchain and others come along that that will be the disruption of the current business model right these business models don't last forever and and I think that then what happens is you you incent the consumer to change their behavior about the relative to their expectations and then as it evolves from there so I think that you know there can certainly be technologies that are a spouse that might in sent that ultimately I think business can some business will brink come up with a disruptive model that does something similar to that or some of the existing players will determine that that's the differentiator for them going forward so I think some of that probably happens a little bit naturally I think the the the other thing I was going to comment on is this issue of security and identity because I think this is really really important first of all I think the tech companies that participate in security we're gonna happen we're we're having to innovate at a rate that is just off the charts I mean we we actually are blocking you're getting attacked once every second we're blocking 20 billion threats every day for our customers yeah 20 billion right is the number we see and then we have to navigate how do we do that in a world that's that's become more encrypted all right where everything's more encrypted and so the innovation is required like we just ship some technology that actually allows you to determine when there's malware inside encrypted I think without decrypting it to try to split the difference between you know between privacy and security and I think that's it's a really complicated issue and the final thing I'll say on this is around identity as we think about security going forward you know for years we built security around defending a perimeter and the perimeter is gone obviously so I'm sure that's new to everybody but we think of ident in this context we think of identity as the new perimeter that we have to do that is really where does the biggest security investments of the future gonna have to land is defining security based on that identity and then go from there it's it's a much different approach so there's so many interesting topics here it's really worthwhile of frankly probably a day in itself in the discussion coming to the last ten minutes of the hour though so I think in terms of again one of the objectives of this session was to try and make it concrete for the Davos impact agenda for 2018 so I'd like to go around and ask each one of the panelists quite briefly to say what have you heard today that you might suggest either becomes a new piece of work for the forum in 2018 or is there something you've heard today that would change the trajectory of work you actually have underway in your various responsibilities here in the forum so sure first I think first of all I'm encouraged and optimistic that we're heading in the right direction if anything acceleration we're not going fast enough to the extent that we can get this public-private partnership especially on the skills which i think is very tangible get that out into the market and show that we're paying attention that we're not tone-deaf I think I think that's something I'm hearing louder rather than when I got here secondly I do think and have been paying attention this for a while the concept of data and who owns the data how's the data monetized I think that's going to become a much much more important issue and that's something should probably take up on a broader scale that at Davos thank you Mike the point to who owns the data but then taking into account that you have to project the data for otherwise you are losing the trust and you are really lost for you are not explaining to everybody we keep an eye on it and it's okay that's not enough anymore the trust needs to be transparent faded and anyhow give us a positive points for them for the future but future starting today my point for the World Economic Forum would be please take attention to that point of the social media and the influence on their young the real young generation I'm worried about that we are facing those results when it's too late thank you nearly Chuck wow there's so many things I think the and hopefully we can get more energy around the skilling effort and bring more more companies together cuz this platform is not you know it shouldn't just be 20 tech companies content it should be it shouldn't be a model for how everybody takes things things board I think the three other quick comments I think secondly we have to figure out how to work more effectively between technology and government to really pragmatically talk about these issues and and and I know that's that's motherhood and apple pie and it's much more complicated but I think that's that's really important the third is I think at some point we need and we we looked at this issue two years ago and people were scared to tackle it just to be transparent in our and it was it was around taking a more active role in the discussion around data privacy and cross-border data flows and how how that should happen on a global basis as opposed to letting everybody I mean it's not letting everybody every country has the right to do their what they'd like to do but I think if there's some sort of standards that become agreed upon then it certainly facilitates things and can help us actually increase access drives a lot more effectively than we did today and that nearly just a final comment on your comment about children and these devices parents around the world need to stand up and be parents and not friends and for some reason we've gotten into this mode as parents that we want to be friends and I think it's it's horrendous what we allow our children do in general much less how long we give them on these digital devices Thank You Chuck Kevin it's the skills agenda for me I mean we've all touched on it today I think you see cups across many different aspects of the forums work but ensuring that tech is built into primary school curricula around the world is key I think seeing ensuring that tech is seen as a way of you know creating more social mobility more inclusiveness around the world that people embrace things like AI and see it as a there's a powerful way of solving the world's problems rather than a threat to their livelihood so I think educating people on the potential of technology providing them with the skills and and and the opportunity for self development to ensure that they can take advantage of that and and so you know we we truly are able to realize the potential of what we have in front of us because I think we've just known am I allowed to have fun lying to that I'm absolutely certain that the present cultural system of the labor market doesn't function and doesn't match the needs of the people and doesn't match to the needs of the industry if you are above 45 you can be the expert you can be a wizkid name it in the digital technology you don't get a job so we have to change our mindset thank you sure I'll take from this conversation today a little bit of nuance around where we put our priorities and in our dialogues with the system initiative to focus more on this notion of ownership of personal data and not just that Canada's notions of privacy as the right to be forgotten but this notion of the right to share and the riches that come from you know the use of your personal information and I think that's a really important concept I think it's also at the heart of the foundation of of creating that trustworthy environment we're in and and and having a trusted interaction digitally has so much potential to build trust generally but at the moment one could argue it's actually strengthening the divide or widening the divide so I think it's really important I think that's very good I think we've come up to the the last few minutes here and we've certainly had a lot of discussion on data and identity and on trust and various certainly on skills hit upon a number of the issues that we actually see globally in the economy the one thing I think we haven't touched upon that would help tie a lot of those together is really how do we actually we talk about new types of partnerships or competitive partnerships or private public partnerships we talk about trust but we we haven't actually talked about how we actually engage the citizens more broadly you know this panel is industry and a policy maker and yet we talk about the digital economy the people that are frankly developing key pieces of that digital economy and certainly much impacted by it don't have the same opportunity to have a voice in a lot of these discussions and are significantly impacted if we take identity which is something that's very important not only here in the forum but generally what identities set it's permanent its with you for life whether you change to a different system or not and there are a lot of positives a lot of pluses there are tremendous amount of downsides as well so to have that discussion I think we need to find ways to do that in a much more open much more inclusive environment and the wife actually has through the digital economy and society a set of activities on network platforms and part of that's being done out of the San Francisco Center for the 4th Industrial Revolution as well and I know they're looking at agile governance and but I think it's really critical that we move that up the priority list and away from some of the topics we want answers to some of these things whether it's security or its use of social media or we need to find a way to engage much more broadly across the world so I think that's one of the things I would take away and in my work here at the Forum I think try and find a way to to advance that with that I think we've come to the end as I'm being signaled I'd like to thank the panel is very very much for a very very interesting discussion and for the excellent questions here from the audience as well and as this is the very first session very first morning in the first day of Davos I'm sure these conversations will continue to resonate for the rest of the week thank you [Applause]

Channel: World Economic Forum

Views: 10,681

Rating: 4.4942527 out of 5

Keywords: World Economic Forum, Davos, WEF2018, Davos 2018, politics, finance, economy, news, leadership, democracy, education, technology, tech, 4IR, AI, automation, work, future, webcast

Id: C7mfNNfDpec

Length: 58min 24sec (3504 seconds)

Published: Tue Jan 23 2018