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Internet of Things –
the final step
towards to robot
apocalypse?
Datenschutz-Forum Schweiz
Matthias Bossardt
1st October 2015
kpmg.com
© 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
© 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
© 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.*
© 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
© 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
© 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
© 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
© 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
© 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
© 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
© 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
© 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
Q&A
© 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
+41 79 829 0664