What is the Fourth Industrial Revolution? | CNBC Explains

Summary

The 'Fourth Industrial Revolution', a term coined by Klaus Schwab, marks an era where technology deeply integrates into human life, accelerating faster than ever. From AI to 3D printing, this revolution is driving innovation but also exacerbating inequality, with concerns over job displacement and privacy as every industry goes digital.

Takeaways

• 🌐 The term 'Fourth Industrial Revolution' was introduced by Klaus Schwab, the founder of the World Economic Forum, to describe a new era of technological integration with human life.
• 🤖 AI, autonomous vehicles, and the Internet of Things are examples of technologies that are increasingly becoming part of our daily lives and even our bodies.
• 📱 Innovations like voice-activated virtual assistants, face ID recognition, and healthcare sensors are indicative of the merging of technology with human life.
• 📚 Klaus Schwab first presented the concept of the Fourth Industrial Revolution at the World Economic Forum in Davos in 2016.
• 🏭 The First Industrial Revolution began around 1760 in Great Britain, characterized by the steam engine and the rise of new manufacturing processes and factories.
• 🏙️ The Second Industrial Revolution was marked by mass production and the emergence of new industries like steel, oil, and electricity, with inventions like the light bulb and the telephone.
• 💻 The Third Industrial Revolution, also known as the Digital Revolution, occurred in the latter half of the 20th century, with the invention of the semiconductor, personal computer, and the internet.
• 🔄 The Fourth Industrial Revolution is distinguished by the rapid pace of technological change and its deep integration with human life, compared to the previous revolutions.
• 📈 The adoption rate of new technologies is significantly faster today, as illustrated by the comparison between the telephone and platforms like Instagram and Pokemon Go.
• 🛠️ 3D printing is a notable example of rapid technological advancement, with the industry expected to grow exponentially in terms of 3D printer shipments.
• 📊 The number of patents related to the Fourth Industrial Revolution, including for 3D printing and AI, has been steadily increasing since the early 2000s.
• 💼 Organizations are embracing new technologies to improve efficiency, similar to the adoption of the steam engine during the First Industrial Revolution.
• 💡 However, some companies and governments are struggling to keep pace with the rapid technological advancements.
• 💰 There is a concern that the Fourth Industrial Revolution could exacerbate existing inequalities, with the majority of innovation benefits accruing to a small group of innovators, investors, and shareholders.
• 📈 The 'winner-takes-all' economy is highlighted as a risk, with high-skilled workers being rewarded while others are left behind.
• 🛂 AI and other technologies are predicted to eliminate certain jobs and create demand for new skills that many workers currently lack.
• 🔒 Privacy concerns are rising as the digitalization of industries leads to increased data collection and potential intrusion into users' private lives.
• 🏛️ The World Economic Forum suggests that many leaders lack confidence in their organizations' readiness for the changes brought by the Fourth Industrial Revolution.

Q & A

What is the 'Fourth Industrial Revolution'?

The 'Fourth Industrial Revolution' refers to an era characterized by a fusion of technologies that are becoming deeply integrated into our lives and even our bodies, such as artificial intelligence, autonomous vehicles, and the Internet of Things.

Who coined the term 'Fourth Industrial Revolution'?

Klaus Schwab, the founder of the World Economic Forum, coined the term 'Fourth Industrial Revolution'.

What are some examples of technologies that define the Fourth Industrial Revolution?

Examples include voice-activated virtual assistants, face ID recognition, healthcare sensors, and 3D printing.

When was the concept of the Fourth Industrial Revolution first presented?

Klaus Schwab first presented his vision of the Fourth Industrial Revolution at the World Economic Forum’s annual meeting in Davos in 2016.

What was the driving force behind the First Industrial Revolution?

The First Industrial Revolution was powered by the steam engine, which led to new manufacturing processes, the creation of factories, and a booming textiles industry.

What inventions were characteristic of the Second Industrial Revolution?

The Second Industrial Revolution was marked by inventions such as the light bulb, the telephone, and the internal combustion engine, and was characterized by mass production and new industries like steel, oil, and electricity.

How does the Third Industrial Revolution differ from the Fourth?

The Third Industrial Revolution, also known as the Digital Revolution, was marked by the invention of the semiconductor, the personal computer, and the internet. The Fourth Industrial Revolution is distinguished by the merging of technology with human life and the rapid pace of technological change.

How quickly did Instagram reach 100 million users compared to the telephone?

It took 75 years for the telephone to reach 100 million users, while Instagram achieved the same milestone in just two years.

What is the potential impact of the Fourth Industrial Revolution on employment and skills?

The Fourth Industrial Revolution may eliminate certain jobs while creating demand for new skills that many workers currently lack, leading to a 'winner-takes-all' economy where high-skilled workers are rewarded with high pay.

What concerns are raised regarding privacy in the Fourth Industrial Revolution?

As every company turns into a tech company and collects more data from customers, there are growing concerns about privacy, with users worrying that companies know too much about their private digital lives.

What challenges do companies and governments face in keeping up with the pace of the Fourth Industrial Revolution?

Companies and governments are struggling to keep up with the rapid pace of technological change, with research showing that innovators, investors, and shareholders benefit the most, potentially exacerbating existing inequalities.