Digital Transformation

The EU is running four pilot projects (Potential, Nobid, DC4EU, EUWC) to test and shape the prototype of the European Digital Identity Wallet application and its functions in several contexts and for different scope. The EUDI development, that’s unfolding at least up to 2030, involves over 250 companies and public authorities from 25 Member States and extra partner countries (Ukraine, Norway and Iceland).

AI avatars and digital twins are two forms of AI-based virtual representations, respectively virtual embodiments of individuals that replicate human behavior, appearance, and even personality, and digital replicas of physical objects, processes, systems, or even people that originate comprehensive virtual profiles of actual entities. They can be applied for customer service, virtual assistance, healthcare, education, urban planning, transportation, manufacturing, gaming, entertainment and much more.

Artificial Intelligence grows at a staggering pace (CAGR of 38% by 2030) and leads the digital transformation as a driving force with its disruptive potential, boasting thrilling growth prospects for the future (it might generate revenues of $94 billion in 2024). What could be the next top trends for the development of AI? Here are the top 10 key factors to be ahead on digitization.

Artificial Intelligence has a very huge impact on energy resources and sustainability. Alex De Vries (VU Amsterdam) highlights that the energetic consumption per year needed to run digital operations equates to the amount of electricity that would power small countries or even 40 average American houses every year. Hybrid AI lean and optimized models can reduce the costs related to Artificial Intelligence and its impact in terms of energy sustainability.

To best handle digitization challenges and opportunities, is key to build a pro-digital transformation culture by rethinking organizations mindset considering people first, processes second and technology last. Indeed, organizations can’t really be able to digitize without matching technology with prepared people, defined processes and a solid culture, the true key to succeed in digital transformation. Digital-first companies prioritize the promotion of pro-digital transformation culture pushing forward with change management, especially in terms of professional education, operational organization and cooperation with external innovative players like schools and startups.

How many types of Artificial Intelligence exist? They are three, varying in terms of complexity, capacity and application scope: ANI (Artificial Narrow Intelligence), specialized to perform specific tasks efficiently only; AGI (Artificial General Intelligence), enabling machine to be multitasking by operating similarly to humans; and ASI (Artificial Super Intelligence), the futuristic highly advanced AI version expected to overtake human comprehension and easily replace mankind as the dominant form of intelligence in the world.

Digital Transformation embodies a key shift in how businesses and public administrations operate by reshaping organizational strategies to leverage the technological advancements. Digital Transformation includes four areas, each one with specific challenges and opportunities, related to changing operational processes, business model and domain, computing systems and organizational culture. The digitalization market is expected to grow up to almost $3145 billion by 2030 (24% CAGR), with investments enforcing data science, introducing AI models, implementing full-remote workflows, migrating to cloud computing and building innovation-oriented culture.

EU Commission welcomes the final agreement on European Digital Identity Wallets, an important step towards public and private digitization of Europe accordingly with Digital Decade’s goals to achieve by 2030. EUDI enables European citizens, residents and businesses to have trustworthy and secure access to cross-border online services. Next steps concern the introduction of Implementing Acts regulating technical specifications for EU Digital Identity Wallet and certifications, 6 and 12 months after the Regulation adoption. Member States are committed to provide EU Digital Identity Wallets to citizens 24 months after the implementation.

Artificial General Intelligence (AGI) refers to a hypothetical form of conscious AI able to think, understand, learn and apply knowledge as humans would do. Important investments are supported year by year to enforce AI within economies and industries and, if today’s predictions are correct, there could be room for the potential evolution of AGI. Indeed, AI global market value shall rise to almost $1812 billion by 2030 (37% CAGR), contributing more than $15 trillion to the global economy by the same year. Specifically, the greatest economic gains from AI will be recorded in China (26% rise to GDP in 2030) and in North America (14.5% boost).

Convenience, efficiency, security, trust and run for innovation are the key benefits and factors driving the demand for digital identity wallet. Digital ID is the next value lever for individuals and organizations, a $27,5 million business with great annual growth estimation up to 2030 (17%) expected to involve 5,2 billion active users worldwide by 2026. Even if the market revenue is mainly shared between North America and Pacific Asia, also Europe is working on the development of the first authentic European digital identity wallet, known as EUDI.