CEO of Smartlink Communications. Global analyst, consultant and trainer, passionate about leadership, global communications and competition.
Even though the term “Fourth Industrial Revolution” might not be familiar to everyone, some exciting moments related to this era have still managed to make it into the news; this includes ChatGPT’s gift to the world’s pupils, AlphaGo’s board game victories and progress in understanding protein folding.
From Inception To Integration
Even as the Fourth Industrial Revolution concept has largely been kept out of headlines, the subject of Klaus Schwab’s 2016 essay continues to develop. As with the Second Industrial Revolution, technological advancement does not immediately equal cost-effective technological adoption, nor does it necessarily equal competitive advantages without economies of scale.
That means progress from new technologies takes significant time to propagate through businesses, economies, legal structures and governance frameworks. For example, it took several decades for the steam engine or even electricity to come into being for much of the modern industrial economy. The same way that electricity cables had to be laid out and machinery updated before its wider economic impact was felt, so do the various components to fully integrate something like machine learning.
Technological Areas Within The Fourth Industrial Revolution
Nevertheless, I see the technology behind the Fourth Industrial Revolution as either already here or progressing rapidly enough that a whole-of-society change is being undergone. In practice, this refers to a few areas of technology:
Artificial Intelligence
AI technologies, such as machine learning and natural language processing, enable machines to perform tasks that traditionally required human intelligence. AI is being used in various sectors including healthcare, finance, manufacturing and transportation.
The Internet Of Things
The Internet of Things (IoT) is a network of networked physical items like cars and appliances that have sensors and software built in. The data collection and exchange capabilities of these devices allow for automated processes and smooth communication.
Big Data
With the proliferation of digital technology, massive amounts of data are generated every second. As part of the Fourth Industrial Revolution, businesses and others are increasingly leveraging big data and advanced analytics to extract valuable insights, inform decision-making and optimize processes.
Robotics And Automation
Advanced robotics and automation technologies are revolutionizing industries like manufacturing, logistics and agriculture. Robots have the ability to perform repetitive and dangerous tasks with greater precision and efficiency.
Biotechnology
Advancements in biotechnology are leading to breakthroughs in fields like personalized medicine, gene editing and agriculture. These technologies have the potential to transform healthcare and our understanding of life itself.
Why Communication Matters
With much of this technology already here, I believe it is partially a matter of managing the transformation it brings. In the context of global competition, I see little point in delaying adoption or resisting change—either at the level of a business or a global value chain.
However, in every transition, there will be, temporarily in the best of case, winners and losers—and at the very least, highly unequal distributions of costs and benefits. That in turn means that parties, either in the boardroom or in the economy as a whole, have diverging interests in the short term.
In fact, the rational move for many business leaders would be to resist change, delay transformation and avoid the costs that come with it. Adding to this is a simple fear of change and a natural propensity toward inertia or an even more natural tendency to avoid the unknown. Without effective communication, I predict that many businesses, organizations and economies may fall behind and lose potential competitive advantages—not out of willful disregard but individual self-interest.
Smart Communication
To combat these issues, I think that smart communication is needed. There will be winners and losers, but there have always been winners and losers in the short term. This didn’t stop the previous Industrial Revolutions, and I am certain it will not delay the latest transition. In practice, smart communication about the Fourth Industrial Revolution means that business leaders advocating for these changes must:
Use Clear And Accessible Language
I recommend that you avoid technical jargon and use language that is easily understandable to a nonexpert audience. Provide common examples to illustrate how AI impacts daily life for the better.
Showcase Gains
AI can automate repetitive tasks, analyze vast amounts of data and make complex decisions faster and more accurately than humans. Learn how to take advantage of these types of tools for your business and then highlight how they can improve efficiency, productivity and resource allocation.
Openly Address Challenges
Don’t try to ignore the downsides but explain how to overcome hurdles; ultimately, find the ways that AI can contribute to addressing current business and economic problems shared by all parties.
Showcase Cost Savings
Despite initial costs, AI implementation can lead to cost reductions, increased revenue and competitive advantages in the long term. These can result in better jobs, better job security and better outcomes for your business as a whole while improving and protecting jobs.
Be Transparent About Ethics
Look to openly acknowledge ethical concerns related to AI, such as bias, privacy and security. You can also highlight efforts and best practices to address these challenges responsibly.
Takeaways
Much of the technology to push forward the Fourth Industrial Revolution is already here or being brought from research labs to the business office. Furthermore, it is almost a given that whoever successfully adapts will have a significant competitive advantage. Consequently, I believe that the main task ahead for business leaders isn’t simply to adopt it, but to communicate effectively for its adoption while advocating for the difficult challenges that lie ahead.
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