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Internet of Things the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt 1 st October 2015 kpmg.com

Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

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Page 1: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

Internet of Things –

the final step

towards to robot

apocalypse?

Datenschutz-Forum Schweiz

Matthias Bossardt

1st October 2015

kpmg.com

Page 2: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

© 2015 KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG Holding AG/SA, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG

International”), a Swiss legal entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks. 1

If the robot apocalypse coming?

It’s likely that machines will be smarter

than us before the end of the century—not

just at chess or trivia questions but at just

about everything, from mathematics and

engineering to science and medicine. There

might be a few jobs left for entertainers,

writers, and other creative types […]

– Professor Gary Marcus

The development of full artificial

intelligence could spell the end of the

human race.

– Professor Stephen Hawking

Page 3: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

© 2015 KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG Holding AG/SA, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG

International”), a Swiss legal entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks. 2

The role of the Internet of Things in the robot apocalypse

Internet of Things

■ Sensors and actuators embedded

in physical objects

■ Interface between cyberspace and

physical world

■ Machine to machine communication

■ Volume

■ Velocity

■ Variety

■ Veracity

■ Autonomous decision making

■ Driven by objectives

■ Towards self-awareness

Page 4: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

© 2015 KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG Holding AG/SA, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG

International”), a Swiss legal entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks. 3

The Internet of Things is around (and in) us

2015: 13,2 bln.

2020: >25 bln.*

2015: 373 mln.

2020: 3,5 bln.*

> 43

Million

2 to 72015: no. of

wearable bands

shipped

2020: no. of IoT

“things” per

living person

Connected devices Smart meters

Connected vehicles

2015: 313 mln.

2020: 1 bln.*

Page 5: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

© 2015 KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG Holding AG/SA, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG

International”), a Swiss legal entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks. 4

Smart everything – how we benefit from the Internet of Things

■ Smart Meters -

efficient use of

energy

■ Home

automation

■ Smart

management of

city

infrastructure

■ Surveillance

Home and City Consumer and

retail businesses

Manufacturing &

Operations

(“Industry 4.0”,

IIoT)

Health Transportation Agriculture

■ Improved

customer

experience

■ In-store

localization

■ Industrial

controls

■ Health and

safety

management

■ Supply chain

optimization

(RFID)

■ Expanded

access to

healthcare

■ Well-being - the

quantified self

■ Emergency

Notification

■ Connected

Vehicles

■ Self-Driving

Cars

■ Smart

Infrastructure

■ Feed the planet

- improved crop

yield

■ Sustainable

environment -

reduced water

consumption

Page 6: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

© 2015 KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG Holding AG/SA, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG

International”), a Swiss legal entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks. 5

Where to make money with the Internet of Things

Page 7: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

© 2015 KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG Holding AG/SA, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG

International”), a Swiss legal entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks. 6

Smart homes – 15 seconds to turn it into a smart spy

Page 8: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

© 2015 KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG Holding AG/SA, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG

International”), a Swiss legal entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks. 7

Smart transportation – RC cars for adults

Page 9: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

© 2015 KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG Holding AG/SA, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG

International”), a Swiss legal entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks. 8

Smart health – the connected pacemaker

Page 10: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

© 2015 KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG Holding AG/SA, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG

International”), a Swiss legal entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks. 9

Industrial Internet of Things – shutting down the steel mill

Page 11: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

© 2015 KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG Holding AG/SA, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG

International”), a Swiss legal entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks. 10

Industrial Internet of Things – why bother with Card and Pin

Page 12: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

© 2015 KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG Holding AG/SA, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG

International”), a Swiss legal entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks. 11

Realizing the benefits – managing the risks

■ Use of data (e.g. privacy)

■ Use of artificial intelligence

■ Global, avoid fragmentation

■ Overarching principles?

■ Effective implementation of principles

■ Role of self-regulation

■ Global enforcement

■ Built-in not bolted on

■ Authentication, redundancy, SW

upgrades/expiration, data

minimization, monitoring...

Security/Safety/Privacy/

Resilience by design

Governance

Regulation and

standards

Ethics

Page 13: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

© 2015 KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG Holding AG/SA, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG

International”), a Swiss legal entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks. 12

…so, is IoT the final step towards the robot apocalypse?

Internet of Things

Overcome critically important challenges around safety, security, privacy and resilience to

realize the full potential of these technologies

Whether we

master of Artificial

Intelligence determines

if and when the

robot apocalypse

becomes real

Page 14: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

Q&A

Page 15: Internet of Things · the final step towards to robot apocalypse? Datenschutz-Forum Schweiz Matthias Bossardt ... It’s likely that machines will be smarter than us before the end

© 2015 KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG

Holding AG/SA, which is a member of the KPMG network of

independent firms affiliated with KPMG International Cooperative

(“KPMG International”), a Swiss legal entity. All rights reserved. The

KPMG name, logo and “cutting through complexity” are registered

trademarks.

Matthias Bossardt

Partner, Head Cyber Security

Dr. sc. techn. ETH

[email protected]

+41 79 829 0664