April 2018 to March 2019

Kenji Kobayashi (Senior Fellow, Institute for International Socio-Economic Studies)

   In this study, we examined advanced use-cases of three advanced technologies (AI, IoT, and blockchain) in mission-critical fields such as public safety, and we considered the important points and issues to bear in mind when they are used in social implementations and in industry.

   In the development of AI models, it is essential to construct a continuous learning system (where models are updated regularly), and to implement the three essential components: AI human resources with theoretical know-how, an effective data access environment, and high-level relationship of trust with domain specialists. In particular, the biggest issues in data access environments are how to ensure privacy and how to obtain the correct data when needed. Social implementations require guidelines and certification systems from public institutions, and even after implementation, it is necessary to have some way of re-examining the effects of introduction.

   In many cases, IoT development often ends at the proof of concept stage, and scaling it up can be difficult due to connectivity issues and deployment costs. Although there is a growing need for real-time control, communication can be a bottleneck. As part of this research, case studies are being conducted on smart city projects in North America.

   With regard to blockchain applications, there are a growing number of use cases besides virtual currencies. These include resource management in disaster situations, identity authentication, and insurance payments. However, there are still many technical issues.

   Based on the above results, we can summarize the following five points as business opportunities for IT companies:

• Automation and labor saving at all stages from AI system development to actual operation and maintenance
• Integration and operations management of data silos (information systems)
• Development of hardware environments for high-speed computation and communication
• Advanced security measures (greater system complexity, greater reliance on open source, defending against cyberattacks)
• Long-term services (~ as a service) from predictive analysis to support and intervention.