The Potential Of Blockchain & Artificial Intelligence For Sustainable .

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The Potential of Blockchain & ArtificialIntelligence for sustainable developmentRyotaro Sekine, Business Strategy Consulting,IBM Japan28th Aug, 2018

Blockchain is the technology to create the Businessnetwork platform across organization and countries.Enterprise Blockchain is suitable to handle businesstransaction which requires high security based on eachcontractIBM FocusCurrent Centralized Platform(Payment etc)FeatureTomAliceBank ABank ABank B(JP)Bank B(US) TTP (Trusted Third Party) Secure, High performance Many TTP involved for crossboarder, cross industryPublic Blockchain(Bitcoin etc )No Third Party Miners Community operates Security(information allshared) Concern There is issue on ScalabilityEnterprise Blockchain(DLT: Distributed LedgerTechnology)TransactionOptimization Specific Consortium operates No Security Concern High ScalabilityUsed to create BusinessNetworks (incl, NPOs)2 2018 IBM Corporation28 August 2018IBM Business Strategy Consulting

IBM Works associated with Sustainable Development Goals(Blockchain)Food Trust:WalmartEnergy:Alectra x InteracPatient Record:FDAShipping ent/sustainable3development-goals/Credentials:Sony global educaitonTicketing:Plastic bottle:German Railways The Plastic Bank

Education: Learner’s credentials can be shared with any entitywith trusted Blockchain network. By embedding AI on top of it,automated job matching / career advisory would be available,which supports Learner’s life long learning.Moocs,E-learning-Check learning Status-RecommendationBlockchain NetworkShared Information People CredentialsSchools Transcript,Diploma(high school, Learning HistoryColleges etc) Micro Degree-Admission Optimization Company Badges-Check learning StatusAI-Recommendation Job matching / Career AdvisoryGovernmentCheck Statistics of educationCompany-Recruitng optimization-BadgesLearners(students,adults)Best Learning experience, Job Matching

Challenges for Blockchain: Creating Blockchain BusinessNetwork and Governance Model is difficult since private sectortends to pursues their own profit and this is really “Winnertakes all” r - LedMemberFounderMemberMemberCommunity ,GovIBM FoodTrustFinancial industry tends totake this pattern5 2018 IBM Corporation28 August 2018Like Wallmart, player whichhas strong power againstother value chain players (likefarmers, processors) can takethis patternUnited NationsFDA, MOE etcFurther involvementExpectedIBM Business Strategy Consulting

What can AI do?7 Things AreaDecision making supportCapture, Transfer expertknowledgeNew product developmentNew material discoveryFood creation support 3. Beyond human skill “God Hand” AutomationPredictive MaintenanceStrongest human in GamesPositioning ObjectsRoute planning1. Huge Knowledge“Scholar”2. New Discovery“Inventor”4. Predicting thefuture “Prophet” 5. Discover hiddenfeature “Detective” 6. Fifth senses, sixth sense “Creator”67. Mechanization ofhuman “HumanExtension”6 Failure Cause / Trend analysisAnomaly DetectionDemand forecasting, stockoptimizationImage DiagnosisSound RecognitionCreative supportChatbotReporting automationMyoelectric muscle hands,prostheses Use CasesLawyer Support ,Recruiting SupportCall CenterR&D Design Knowledge ShareNew Material DevelopmentNew Drug DevelopmentNew Recipe Suggestion Automated Drive, Collaboration RobotFactory Machine MaintenanceGames (Chess, Shogi, Go)Automated Parking supportRoute Optimization for Car Vehicle Failure IdentificationAirport crime monitoringBeverage demand/stock forecast Medical diagnostic, Machine VisionBelt Conveyor Failure DetectionMusic Composition, DrawingsMovie Trailer Web Chat BotFinancial, Accounting ReportingMicroeletric Arms

IBM Works associated with Sustainable Development Goals(AI)Adaptive Learning, Irrigation, GrowWatson Education with knowledgeDiagnostic with Adaptive Learning, Non bias dataMedical Image Watson Education Machine learningAir pollutioncontrolCommand Control Demand forecast,Efficient generation, Stock price,Expert KnowledgeNon bias dataSupply Chain,Machine learning CenterLess usage sol.Risk forecast transferProduct LifecyclePollution decrease Robot to cleanwith traffic mgmt. polluted waterSports funexperimentElder peopleSupport for tainable-development-goals/Technology for worldUsage concept

Challenges for AI: Due to its complexity, a lot of cases arestill on Poc phase. Involvement of key players i.e. publicsectors and enhancement of AI literacy is essential to moveforwardChallengesAI/IOT ArchitectureDashboard - ReportingText AnalysisRegular operationsAdvanced AnalyticsLogicSimpleCalcIdentification, Classification,Predictions, OptimizationCplexInputStructured DataLearningSPSSUnstructured Data Natural Languages ImagesInformation GovernanceOutputIrregularOperationsManual input Internet of ThingsSound,Motion,Heat etcNews,WebsVoice ofInternalExternalExcels SensorsCustomer System Data System Data1. Data Gathering:especially when itbecomes personalinformation(like medicalrecord), it is difficult toget shared without thehelp of public sector.2. AI literacy: AI requirescontinuous training ofcomputer, biz userneeds to know how trainAI as well as understandthe meaning of outputdata. Some people aretoo much expectations(AI replaces all work,etc)

In the future, all techs should be vertically “integrated” with highbroad band capacity for making techs available for “Everyone”PastUser Mainly EnterpriseUsersAlgorithm(AI)Human ModifiesComputer Algorism(No AI)DataGathering Available for “Everyone”Computer Starts to Learn-Machine / Deep Learning-Handling unstructured dataComputer performs“Far beyond Human”-Quantum Computing-Generic AIDecentralized (Blockchain),Connected NWInter-Decentralized NW(Blockchai X Blockchain)OrgAOrgBCountry A Country BOrgAOrgBCountry A Country BOrgCCountry AOrgCCountry AManual InputFuture ( 5 years later)Integration of technologiesManual Sensor input(internet of Things)RequiredNot wholly covering in some counties –NetworkThere is28stilldigital divide on land / Mobile network9 2018 IBM CorporationAugust 2018InfraOrgAOrgBOrgCBlockchain AOrgDOrgEOrgFBlockchain BAutomated input(voice, eye-movements etc) Sensor InputBroader NWInfrastructure with hugeIBM Business Strategy ConsultingCapacityStrong integrationNetwork Enterprise Partially Endusers (i.e. Consumers)Weak integrationCentralized,Disconnected NWCurrentEmerging of new technology

Summary and Recommendations1. There are emerging technologies (Blockchain/AI/IOT) having high potential to achieve SDGs2. However, each tech is being verified one by one,not unleashing the full potential with integration3. Moving forward, choose specific SDG (i.e.Education) and form cross-vertical team fromeach tech layer to accelarate achieving SDG goal4. Facilitator / Consultant / Integrator plays animportant role for execution Facilitator: United Nations, NPOs , Government Consultant /Integrator: I (incl, IBM)10 2018 IBM Corporation28 August 2018IBM Business Strategy Consulting

Thank You!Contact information: ryotaro@jp.ibm.com11

Non bias data Machine learning Air pollution control Stock price, Risk forecast Pollution decrease with traffic mgmt. Robot to clean polluted water Sports fun experiment Elder people Support for life Technology for world Usage concept Adaptive Learning, Watson Education Non bias data Machine learning