The race for technological supremacy is gaining momentum. Western superpowers have, thus far, reportedly funneled over USD 81 billion into developing next-generation semiconductors that can process AI applications to counter China’s tech ambitions.
In a globalized world, when one government adopts a successful approach, others often follow suit, implementing and expanding these global best practices. It's no surprise, then, that government technology is expected to become the largest software market globally, projected to exceed USD 1 trillion by 2028, according to the World Economic Forum.
The Rise of Interconnection Highways
International communication has become the norm in today’s economy. Subsea cable deployments and data center and internet exchange developments are on the upswing. In recent news, Amazon Web Services (AWS) announced plans to invest GBP 8 billion (USD 10.45 billion) over the next five years to build and operate data centers in the UK alone.
To ensure the efficient operation of data centers, a Global AI Infrastructure Investment Partnership (GAIIP) has been set up to invest USD 100 billion in new and expanded data centers to meet the growing demand for computing power. The investment will also be used to develop energy infrastructure to create new sources of power for these facilities.
Similarly, telecom operators, mobile operators, corporations, governments, content providers, and research labs all rely on submarine cables to exchange data around the world. As per TeleGeography, as of June 2024, there were over 600 active (and planned) submarine cables. Due to the constant change in new cables entering service and older cables being decommissioned, the exact number of active cables is difficult to ascertain.
Moreover, APIs (Application Programming Interfaces) are increasingly being considered the pillar of the economic paradigm (known as the API economy), enabled by both terrestrial and non-terrestrial connectivity. APIs are being used to integrate various network capabilities (functions and applications) across layers to deploy, manage and efficiently operate networks. Their utility has evolved to provide unprecedented connections and data exchange for a wide range of applications, independent of their platforms, data formats, or underlying technology.
For example, Nokia is pushing the boundaries of 5G with APIs, focusing on improving network automation and enabling real-time data exchange to support smart city applications and IoT devices.
Similarly, Ericsson is enhancing network capabilities by utilizing APIs to streamline access for developers and businesses, enabling them to integrate various services more effectively. This API strategy aligns with the broader global movement toward scaling network APIs, as seen in a telecom consortium's goal to implement scalable network APIs by 2025.
All stakeholders are dabbling with the emerging opportunities and risks and collaboratively pioneering solutions to jointly address strategic priorities. The integration of emerging technologies such as 5G, AI, blockchain, VR, AR, quantum computing, brain-computer interfaces, and biotech is driving significant advancements across various sectors, including healthcare, finance, retail, and industry.
These interconnected technologies are transforming the digital landscape, unlocking new opportunities for innovation and efficiency. For example, in healthcare, AI and biotech are revolutionizing diagnostics and treatment options, while blockchain is enhancing data security. In finance, 5G and quantum computing is improving transaction speed and encryption, paving the way for smarter and faster digital services, all leading to boundless possibilities.
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Feedback on Technological Advancement
It’s a good time to reflect on the impact of these technological advancements from a global perspective. Despite the significant advancements brought about by digital transformation and the adoption of innovative technologies across sectors like healthcare and finance, challenges such as regional conflicts and geopolitical tensions continue to persist. For instance, while countries such as the UAE and Saudi Arabia have made significant strides in developing smart cities and enhancing digital infrastructures, ongoing geopolitical tensions in the region—such as conflicts in Syria and Yemen—have hindered broader, region-wide technological advancements.
These issues are impacting global stability, making it difficult for economies to fully benefit from these technological strides. Geopolitical divides influence trade, data security, supply chain disruptions, and the global market, often causing setbacks in international collaboration and technological adoption. As a result, while we see progress in many areas, these ongoing conflicts remind us that technological solutions alone cannot resolve deep-seated geopolitical challenges.
In addition to technological and economic challenges, global issues such as nuclear threats, climate change, inequality, injustice, discrimination, racism, poverty, and hunger remain significant barriers to achieving sustainable development goals (SDGs).
The negative effects of digitalization are also crippling businesses through various cybersecurity threats. Recently, a mobile application known as Ghost was busted by Australian police due to the presence of nefarious activities. Ghost—an app like WhatsApp—was used by criminals to facilitate drug deals and plan assassinations. Law enforcement authorities have struggled to tackle encrypted apps operating on hidden criminal networks hosted in “hidden servers” across the globe. The coordinator of the operation—Europol—maintained that the app had several thousand users worldwide with around 1,000 messages being exchanged each day.
The topic of AI is central to this conversation, especially with the rise of generative AI (GenAI). We are now in an era where generative AI, driven by large language models (LLMs), plays a crucial role in tasks such as data analysis and pattern recognition. However, these models remain vulnerable to "blind spots," as they rely on both open and classified data sets that can lead to inaccuracies, biases, or incomplete outputs.
Notably, it is the development of ‘transformative artificial intelligence’ (TAI) that could lead to entirely new technological hazards, opine experts. TAI, based on reinforcement learning, may enhance our ability to perceive, reason, and act in the world, leading to radical changes in societal domains.
Fundamentally, the key problem with TAI is value misalignment; as objectives cannot be hard-coded, TAI is difficult to align perfectly with human values. TAI is broadly defined as the development of machines capable of developing human-level performance with the potential to bring about irreversible changes in welfare and wealth systems. However, there is no consensus as to when we will see human-level performance by AI as some believe it could be a few years away and some say it could be decades away. Since technological forecasts have historically been inaccurate for obvious reasons, the only remedy in such instances of uncertainty is to be prepared and aware of its impact.
Also Read: GlobalData: Generative AI Announcements Reshaping Global IT Economies and AI Ecosystems
The Importance of a Forward-Looking Vision
UN studies have found that current governance frameworks are inadequate to effectively address existential risks, particularly those arising from technological advancements. These structures are not "fit-for-purpose" in managing the complexities and challenges posed by rapidly evolving technologies, leaving gaps in the ability to mitigate threats on a global scale. Hence, in an increasingly cross-border network communication ecosystem, it becomes imperative that individual countries take full ownership of global risks by strengthening governance structures to be reactive rather than proactive, focusing not only on specific risks but also on the broader existential risks.
Coinciding with the UN Summit of the Future, which will be held this month in New York, a recent report by the Dubai Future Foundation (DFF) entitled “The Future of Progress” highlighted the need for a new global measurement of national success that goes beyond the traditional concept of gross domestic product (GDP) as adopted some 80 years ago.
It maintains that “swift advances in technology and the emergence of global imperatives such as climate change and social development needs have exposed limitations in GDP as a measure of prosperity.” In addition, the need to maintain a utopian perspective of technological progress rather than a dystopian perspective plagued by existential threats is vital for the future generation as well as the ICT industry as a whole.
It is in the industry’s best interest to support the United Nations Summit of the Future in achieving its five sustainable development goals. These goals encompass financing; peace and security; science, technology, and innovation; youth and future generations; and the transformation of global governance. The future of the interconnected ecosystem should be firmly grounded upon these pillars and guided by the ethics of technology.
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