AI, IoT and blockchain are among the exponential technologies fueling the next wave of digital transformation. They have the potential to improve current business processes, create new business models and disrupt various industry sectors. They bring “feeling, thinking and remembering” – three of the most amazing possibilities of human endeavor to the digital world – feeling through IOT sensing, thinking with AI algorithms and remembering through blockchain ledgers.
While AI, IoT and blockchain may have evolved independently, the convergence of these technologies in today’s scenario cannot be overlooked. It can not only improve the development of new business models, but revolutionize the way people interact with the world.
Together, they unlock each other’s potential
Traditional IT systems have evolved in terms of interactions, information processing and computation, making it ideal for AI, IoT and blockchain to work together. IoT provides a point of contact for data exchange and real-world interactions, blockchain provides the infrastructure while AI optimizes processes and enables intelligent decision-making. They complement each other in many ways, and if combined they can create more opportunities for companies.
Convergence of blockchain and IoT: The growth of IoT-based applications has provided a layer for interaction between technology and the real world; however, it comes with a set of key challenges such as security, privacy, scalability and maintainability. IoT devices must operate on a high-performance architecture even to perform trivial tasks such as capture, processing, and communication. Blockchain technology when used in conjunction with IoT can help accomplish these tasks by providing features such as decentralization, persistence, anonymity, and auditability, thus creating trust in the system. Blockchain enables IoT applications to store and access data remotely from any location and ensure the privacy of the data stored in the network.
Convergence of blockchain and AI: Developments in AI and blockchain have driven forward new developments in the digital journey of companies. While blockchain offers explanation, privacy and trust to AI-based applications, AI can improve scalability and security while solving the personalization and governance issues of blockchain-based technologies. Authenticity is one of the biggest plus points of using blockchain technology, which together with AI can ensure trust in data integrity and improve recommendations. AI can also help companies understand and recognize business challenges and enable decision-making.
Convergence of AI and IoT: IoT networks comprise a myriad of connected devices that expose it to a variety of network vulnerabilities, including data theft. AI-powered systems can defend against this malware and hacking attempts. AI can also improve the functionality of the IoT network by making it smarter and autonomous. Blockchain can further improve the security of the network by limiting data access on the network.
The possibilities of these technological intersection
The convergence of AI, IoT and blockchain has opened opportunities to explore use cases across multiple industries such as healthcare, finance, accounting and even personal areas.
Health Service: Wearable devices equipped with sensors to monitor the state of health of a person in real time and predict adversity in good time is one of many use cases. Connected devices and virtual assistants can notify the patient of any setbacks, cross-reference their calendar with the doctor’s and schedule a doctor’s appointment automatically. Blockchain can ensure a secure, accurate, digital medical history for the doctor’s reference and can enable secure payments.
Production: Using various IoT-powered production monitoring solutions, manufacturers can get a remote, digital status of every machine operating in the factory and predict production capacity. Use of AI can ensure proactive fault identification, predictive maintenance and correct resource and capacity planning. It can also ensure proactive and secure purchase of raw materials and machine parts through blockchain in a secure manner.
Automation: When empowered with these transformational technologies, technologies like virtual assistants and chatbots can become much more proactive in performing home automation tasks, driving, making secure payments, and more.
Future trends
While AI, IoT and blockchain are potentially transformative on their own in silos, they can be more powerful when combined. Together, these three transformational technologies can make the world a better place by driving the development of new business models, products and services across diverse applications.
(The author is Prashanth Kaddi, Partner, Consulting, Deloitte India, and Naveen K, Manager, Consulting – Analytics & Cognitive, Deloitte India and the views expressed in this article are their own)
