7 Reasons why the Algorithmic Business will Change Society

7 Reasons why the Algorithmic Business will Change Society
đź‘‹ Hi, I am Mark. I am a strategic futurist and innovation keynote speaker. I advise governments and enterprises on emerging technologies such as AI or the metaverse. My subscribers receive a free weekly newsletter on cutting-edge technology.

The world around us is changing so rapidly, that even the hype big data is already outdated. Big data is nothing new any more, and by now we all know that more data is coming our way, rapidly.

But in big data itself is no value at all.  We can all generate massive amounts of data after all. By itself, big data is not transformative. Not even big data analytics is driving the change, after all, any company can hire analysts to provide insights into your data. Where the real value lies is in algorithms. Algorithms define action and dynamic algorithms are at the core of future businesses. Welcome to the Algorithmic Business.

The Algorithmic Business

The algorithmic business is a company build around smart algorithms. Algorithms that define company processes, that deliver customer services that take action when necessary and as such define the way the world works. During the latest Gartner ITXpo, Gartner predicted the rise of the algorithmic business to change forever how we do business.

To understand all the data coming our way, algorithms will be required. In the digital era ahead of us, algorithms will be able to operate independently. These algorithms will be able to understand customer behavior, learn from devices and perform the right action accordingly. Algorithms will optimize your supply-chain, they will drive your cars, they will monitor your robots, and they will even determine the right marketing message.

Expect to see large algorithm marketplaces, where developers can download, purchase or license small pieces of software that offer a very specific, smart solution. Expect to see smart algorithms that are capable of creating new improved versions of itself as well as creating completely new algorithms. And expect to see a new industry that will regulate all these algorithms to ensure that they do what they say they do. The algorithmic business is going to have a dramatic impact on organizations and the world around us.

7 Ways Algorithms Will Change Your Business

According to Gartner, these algorithms will change the way we work and will have a dramatic impact on employees in a wide variety of industries and departments. During a trend prediction session at the Gartner ITExpo, Gartner predicted among others the following:

  1. By 2018, 20% of all business content will be authorized by machines, which means a hiring freeze on copywriters in favor of robowriting algorithms;
  2. By 2020, autonomous software agents, or algorithms, outside human control, will participate in 5% off all economic transactions, thanks to, among others, blockchain. On the other hand, we will need pattern-matching algorithms to detect robot thieves.
  3. By 2018, more than 3 million workers globally will be supervised by a “roboboss”. These algorithms will determine what work you would need to do.
  4. By 2018, 50% of the fastest growing companies will have fewer employees than smart machines. Companies will become smaller due to the expanding presence of algorithms.
  5. By 2018, digital customer assistants will recognize individuals by face and voice across channels and partners. Although this will benefit the customer, organizations should prevent the creepiness-factor.
  6. By 2018, 2 million employees will be required to wear health and fitness tracking devices. The data generated from these devices will be monitored by algorithms, which will inform management on any actions to be taken.
  7. By 2020, smart agents will facilitate 40% of mobile transactions, and the post-app era will begin to dominate, where algorithms in the cloud guide us through our daily tasks without the need for individual apps.

Algorithms: the Oil for the Internet of Things

Algorithms will also significantly influence the Internet of Things. Without them, the IoT will not even become possible! Gartner predicts that by 2020 150 new devices will be connected to the Internet, every second! All these devices will be connected to business processes as well as billions of smartphones.

This will generate massive amounts of data that need to be analyzed to understand what’s going on. This can only be achieved with algorithms, which can take automatic action at the right moment.

The Internet of Things is all about actions taken by algorithms based on the data that is generated by the connected devices; For example, you have a connected thermostat, and your car knows that you are driving home, your car knows that the temperature is low in your house and tells the thermostat to turn up the heating. When you arrive home, it is nice warm and cosy inside.

Of course, what an algorithm can do for your home, can also be done on a large scale in your business. As Senior VP at Gartner Peter Sondergaard explains: “algorithms define action” and “by 2020, smart agents will facilitate 40% of interactions”.

Algorithms will also be able to take into account the context. The context that is so important, and required, to truly understand what is going on within a particular process, business or device. With sufficient data sources, that each tells their side of the story, algorithms will be able to determine the right action based on a myriad of data points.

In essence, algorithms will be able to find the right business moments, make meaningful connections and predict all kinds of behavior. The algorithmic business will be the business of the future, and it will change society as we know it.

Dr Mark van Rijmenam

Dr Mark van Rijmenam

Dr. Mark van Rijmenam is a strategic futurist known as The Digital Speaker. He stands at the forefront of the digital age and lives and breathes cutting-edge technologies to inspire Fortune 500 companies and governments worldwide. As an optimistic dystopian, he has a deep understanding of AI, blockchain, the metaverse, and other emerging technologies, blending academic rigor with technological innovation.

His pioneering efforts include the world’s first TEDx Talk in VR in 2020. In 2023, he further pushed boundaries when he delivered a TEDx talk in Athens with his digital twin, delving into the complex interplay of AI and our perception of reality. In 2024, he launched a digital twin of himself, offering interactive, on-demand conversations via text, audio, or video in 29 languages, thereby bridging the gap between the digital and physical worlds – another world’s first.

Dr. Van Rijmenam is a prolific author and has written more than 1,200 articles and five books in his career. As a corporate educator, he is celebrated for his candid, independent, and balanced insights. He is also the founder of Futurwise, which focuses on elevating global knowledge on crucial topics like technology, healthcare, and climate change by providing high-quality, hyper-personalized, and easily digestible insights from trusted sources.

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