Industry 4.0, AI And Blockchain And Policy Making

Could applying Blockchain and AI thinking to innovation policy become a global megatrend? Greater supply-chain efficiency could raise GDP, and applying this approach across society could be transformative. Michael DaCosta Babb investigates how revolutionary policy-making can become in Industry 4.0.

Design Thinking is “a methodology for practical, creative resolution of problems or issues that looks for an improved future result.” The term was first used by US academic Herbert A. Simon in 196,9 in his book, interestingly titled “The Sciences of the Artificial”. (MIT Press). Interesting, in the sense that after almost five decades, artificial intelligence, and not science, is now the latest buzzword.

Only later in the Nineties was design thinking popularised by key design sector opinion formers such as David Kelley, the founder of IDEO, who defines it in the following way: “Design thinking comes as a framework for human-centred innovation and as a new management paradigm for sustainable value creation in a world of radically changing value networks.”

Academics such as Joannah Luetjens and Michael Mintrom have deeply analysed the application of design thinking in policymaking in numerous studies and white papers. Following on logically from this work, in a time of new decentralised networks, our thinking must also become decentralised. That means developing trusted solutions for complex problems because the current trustless environment actually treats thinking as the lowest common denominator. Indeed, we need to trust that we are thinking about the right problems for society!

So if design thinking in this context is about building up policy ideas, then the new trend for Blockchain/AI thinking should be about building trusted policy for actual problems and not Fake News. But let’s not forget that Blockchain/AI thinking is entirely transversal and can be applied across many different sectors. Blockchain/AI thinking is also ideal in situations where resources are limited or where boundaries such as ‘public’, ‘private’ or ‘partnership’ need to be regulated and defined.

Blockchain/AI thinking is about nurturing new ways of approaching solution development

Policymakers everywhere should be implementing highly structured strategies that build on the techniques formulated by blockchain/AI developers. Later, other sectors such as media, commercial and academia can adopt them.

If one purely looked at the application of distributed ledger technology and blockchains across government supply chains and the consequent increase in efficiencies, that would already be enough of an argument to use blockchain. In order to get to that point, blockchain/AI thinking should be applied to the entire policy planning process. The same techniques can then be applied across a myriad of verticals.

In 2017, in Syria, blockchain was successfully used by the World Food Programme as the basis for food distribution in refugee camps. The same technology could also be used for benefits distribution across the globe.  

During a Fabrica do Futuro radio interview in March 2019 with Luis Lamb, a Minister of State for Innovation in Brazil, it was suggested that a robot tax and universal income could also be based on the blockchain and that Porto Alegre could become a global hub for community-based technologies. The Berkeley City Council has already started pilot projects in this area:

How has the 4th Industrial Revolution already influenced policymakers?

In the 21st century, unless a policymaker is entirely unplugged from the internet and does not possess a mobile device, then they will have already been affected by frontier technology such as Artificial Intelligence or Machine Learning. 

According to tech company DOMO, “Over 2.5 quintillion bytes of data are created every single day, and it’s only going to grow from there. By 2020, it’s estimated that 1.7MB of data will be created every second for every person on earth.” 

So, these days, interacting with any given technology platform produces huge amounts of data, which sets up biases which in turn influence decision-making processes and are reinforced by machine learning and other emerging technologies. 

This has been noted in the USA, where the use of ready-made AI algorithms in the legal system has distorted the treatment of certain ethnic minorities. This is a case that infers the importance of purpose-made, as opposed to off-the-shelf, AI and clear regulation on its integration within legacy systems.

Ahead: What will the future look like with technology in charge of policymaking?

The 4th Industrial Revolution is here now. If the 5th technological revolution is indeed a human one, as suggested by me in my essay “Southern vs Northern Hemisphere 5.0”, then it is likely to happen very fast. The issue here is that the governance systems that dominate the world order are slow. 

And therein lies the rub. That dissonance between progress and humanity means that civic life for the average citizen is far from frictionless. The State is in the way rather than invisible, as it should be. But if emerging technologies such as blockchain, AI, robotics and IoT are applied by the policymakers, then mainstream adoption will surely follow. It is a future scenario where every single decision-making process is decentralised and based on trusted policy. 

From applying for a passport to getting planning permission for an extension, through to voting and passing new legislation. The entire panorama of policymaking can be made more transparent and efficient. And that can only benefit society as a whole, especially in times of scarce resources. However, for that to happen, politicians will have to adopt a new civic role and give up power. 

Unfortunately, as we all know, power is both corrupting and addictive. So how can we make Policy 4.0 a reality?

What do we all need to do next for Policy 4.0 to become a reality?

The ecosystem in which we all live is very simple: Every day, all of us criss-cross and interact with academia, commerce, media and policy in some way, shape or form. And everything we do every day is in some way controlled by these factors. So we need to apply emerging technologies to the entire ecosystem and apply global standards.

Starting with education, the next generation of academics should be involved to reinforce the integrity and scientific rigour of any future Policy 4.0. Indeed, education in general is a huge driver for policy innovation. In the following chapter, hints are given about the education revolution required for policymakers to really innovate and the consequent ethical and moral implications. 

But if the general public is to adopt these technologies, then the media will also have an important role to play. Whether it be traditional or social, media can be an important ‘teacher’ and opinion former. Therefore, the inclusion of Industry 4.0 themes in mainstream popular culture, such as soap operas, films and TV series, is essential. They are the new public service announcers and, as such, should rise to the challenge. In fact, this has already happened with the biggest YouTuber ever, Felix Kjellberg, aka ‘PewDiePie’, leaving the channel to join the blockchain-based DLive platform. 

The corporate social responsibility in the time of Industry 4.0 becomes an important transversal layer of consistency across society. Brands will apply 4IR technology to their entire supply chain. They will do this for efficiency, but they will also do this because they know their partners and customers are more curious and demanding than ever when it comes to corporate values and transparency.

In the time of the Fourth Industrial Revolution, the devil is in the data as well as the detail. And said data is omnipresent every millisecond of every day for billions of people across the planet. UK-based tech company World Wide Generation have developed a blockchain-based scorecard matched to the UN SDGs. It has already been used by Unilever to distribute dental products in South Africa. 

If the rest of the ecosystem is being transformed, then policy will have no choice but to go with the flow. The choice is simple. Will policymakers be at the vanguard of change or later adopters? Whatever happens sooner or our political cousins will have to change their modus operandi. The revolution has already begun. They can be in the thick of it or watch from the sidelines as the action unfurls.

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