1、DIGITALECONOMY TRENDS2024DIGITALECONOMY TRENDS20242TABLEOF CONTENTS01.02.03.04.05.06.07.08.03041215112115120133ForewordExecutive summaryIntroductionDigital Economy TrendsMethodologyTerminology&GlossaryReferencesAcknowledgments Disclaimer and Copyrights:The Digital Cooperation Organization(DCO)Digita

2、l Economy Trends 2024 report is developed for the sole purpose of facilitating public debate globally.This report does not necessarily reflect the official views of the DCO Member States,nor the official position of any staff members.Data related to the digital economy trends is compiled from recent

3、 international sources that are cited,and the data is represented as accurate as it is stated in the source.The DCO does not take any responsibility for the data that may be inaccurate.The names of companies,entities,products,services,etc.mentioned in this document are not intended as an endorsement

4、 or referral to by the DCO,its Member States,or staff members.2023,The Digital Cooperation Organization,all rights reserved.3We live in an era characterized by unparalleled innovation,where the Digital Economy is exponentially growing due to rapid technological advancement and digital transformation

5、.Understanding how the digital economy is performing now,plays a pivotal role in shaping how governments,businesses,and civil societies operate.As the Digital Cooperation Organization embarks on a journey to explore the dynamic landscape of the digital world,it is with great excitement that we prese

6、nt the first edition of the Digital Economy Trends in 2024”report,where we delve into the emerging trends that are shaping our future.We offer our distinctive viewpoint on the digital economy,formulating a how-to guide for each of the trends,covering implications and recommendations for stakeholders

7、 across the global digital economy ecosystem,ensuring theres something valuable for everyone who aspires to contribute to the growth of an inclusive and sustainable digital economy.As we strive to become a reliable information provider and advisor,it is our commitment to ensure that our findings are

8、 not only insightful but actionable,providing an outlook on digital economy trends for those who aspire to shape and be part of the growing global digital agenda.This aligns with the Digital Cooperation Organizations mission of achieving social prosperity and growth of the digital economy by unifyin

9、g efforts to advance digital transformation and promote common interests.As we delve into these trends,we invite you to join us in reflecting and embracing the profound impact they have on governments,businesses,and civil society.We extend our gratitude to the experts and industry leaders who contri

10、buted their breadth and depth of insights and expertise to this endeavor,bringing the best of our global ecosystem together to enable digital prosperity for all.Secretary-GeneralDeemah AlYahya The Digital Cooperation OrganizationForewordDCO Digital Economy Trends 20244ExecutiveSummary02.ExecutiveSum

11、mary02.ExecutiveSummary02.5Digital Economy Trends Executive SummaryExecutive SummaryIn the inaugural edition of the DCO Digital Economy Trends report,we uncover a digital economy roadmap for 2024,that not only drives public and private sectors into a new era of digitization,but also redefines the fu

12、ture of our civil society.The shift of this technological paradigm is projected to unleash a series of opportunities across six themes that will exert significant influence over the digital economy in 2024:Applying our state-of-the-art methodology,thought leadership,experience from international tec

13、hnical and visionary experts,coupled with insights from global think tanks,has allowed us to anticipate how each trends disruptive influence can be hypothesized,envisioned,approached,and actioned in 2024.ArtificialIntelligence TrustEconomy DigitalRealityCybersecurity SmartEcosystems GreenEconomyOur

14、analysis covers the fueling enablers for the trends identified,which serve as catalysts to drive the effective adoption and evolution across the six themes with the potential to shape the digital economy in 2024.The key enablers identified for 2024 are:These key takeaways are provided and tailored t

15、o the requirements of all relevant digital economy stakeholders,including public and private sectors,and inter-governmental organizations.Each of the themes identified comprises several trends that collectively shape the future of the digital economy.Moreover,stemming from the DCOs role as an inform

16、ation provider and advisor,our report includes implications and recommended actions,ranging from guiding the implementation of digital technologies,targeting global priorities,applying appropriate governance for the adoption of trends,or even redefining business priorities,to contribute to the growt

17、h of the global digital economy.Digital InfrastructureDigital GovernmentDataEmerging TechnologiesDigital TransformationDigital Skills6Digital Economy Trends Executive SummaryArtificial IntelligenceIn the past few years,AI,and particularly generative AI(GenAI)models have significantly expanded their

18、reach and sophistication,facilitating applications across sectors ranging from creative media to healthcare.GenAI is envisioned to play a pioneering role in cutting-edge software development,driving AI-powered digital government,and also contributing to accelerate environmental sustainability.The tr

19、ansformative impact of GenAI on the digital ecosystem is projected to expand its market to USD207 Bn by 20305.This holds significant implications and associated recommended actions for all stakeholders,as concerns related to ethics,misinformation,and bias are required to be managed.Before we delve i

20、nto the detailed digital economy trends identified for 2024,a summary of the six core themes and associated trends is presented below:Key Recommended Actions:Create controlled testing environments with flexible AI regulatory frameworks to foster innovation while ensuring responsible practices.Collab

21、orate with the private sector to prioritize investments in AI digital skills and requisite infrastructure.Establish transparency and accountability measures for secure,responsible,and sustainable applications of AI.Prioritize the implementation of AI cybersecurity,data privacy,and sustainability mea

22、sures.Engage with regulators to keep AI regulatory frameworks aligned with innovation and business needs.Embrace a culture of AI“coopetition”through joint research consortia and shared service platforms.Foster global collaboration around AI governance.Encourage academics,industry leaders,and NGOs to

23、 join international forums to build partnerships and converge on unified standards for AI technologies.Public Sector01Private Sector02IGOs,IOs,and others037Digital Economy Trends Executive SummaryTrust EconomyBlockchain technology has evolved into a transformative force,transcending sectors to fuel

24、a trust economy.It has witnessed increased adoption in various sectors,including financial services,healthcare,supply chain,and logistics.Blockchain promises to impact and redefine sustainability initiatives and next-generation governments modus operandi,enabling trust,transparency,and accountabilit

25、y to boost the digital economy.This progress hinges upon recommended actions,including the establishment of a robust and standardized regulatory framework,the enhancement of workforce skills,and collaborative efforts to promote digital preparedness for the required seamless interoperability.Key Reco

26、mmended Actions:Develop national strategies for the adoption of blockchain,including sectoral ambitions and initiatives,in collaboration with the private sector.Invest in the development of interoperable standards to enable seamless data exchange across different blockchain networks.Invest in blockc

27、hain capacity building programs to foster a culture of innovation through education,boosting the trust economy.Encourage collaboration in developing common standards,to foster a strong regulatory landscape for blockchain innovation.Disseminate requisite information to promote early adoption of block

28、chain-powered operations by public and private sectors.Evaluate existing technology infrastructure through comprehensive impact assessments prior to integrating with blockchain solutions,to ensure interoperability and maximize benefits.Identify and prioritize key areas where blockchain can improve e

29、fficiency within supply chains,to boost operational performance and build trust in sectors where information traceability is important.Public Sector01Private Sector02IGOs,IOs,and others038Digital Economy Trends Executive SummaryDigital RealityExtended Reality technologies(XR)have become integral too

30、ls across industries through a broad spectrum of applications,including hyper-personalization in various sectors,like healthcare,education,retail,fashion,and gaming.Substantial interest from major global technology players is propelling XR to the forefront,as we increasingly witness XR revolutionize

31、 everything,from enhancing customer experiences to optimizing operations of an organization through product innovation,prototyping,virtual sales,and remote collaboration.Digital Reality recommended actions can be far-reaching,from ensuring responsible usage to promoting digital inclusion and mitigat

32、ing environmental impact.Key Recommended Actions:Develop regulatory frameworks centered on data governance and XR risk management for XR applications and services.Prioritize privacy-by-design principles in XR development,fostering a secure environment for immersive technologies to boost user trust.C

33、ooperate with the public and private sectors to establish technical standards for digital infrastructure,devices,and applications,to facilitate seamless interactions between different XR platforms worldwide.Focus on affordability,cultural inclusivity,and continuous user feedback integration,to boost

34、 inclusivity.Collaborate with relevant stakeholders,including regulatory bodies,to create sustainable policies that encourage responsible XR production and consumption.Proactively address concerns around privacy,security,and interoperability,to create a more informed market and accelerate the integr

35、ation of XR technology across various applications.Public Sector01Private Sector02IGOs,IOs,and others039Digital Economy Trends Executive SummaryCybersecurityBy 2026,70%of company boards will include one member with cybersecurity experience63,and this is attributed to the need for cultivating trust a

36、nd confidence among consumers and businesses,to drive digital economy growth.The present cybersecurity environment,governed by numerous policies and regulations,has spawned modern approaches such as Zero-Trust and DevSecOps,counter the increasing number of innovative attacks.Looking ahead,AI-driven

37、advancements in cybersecurity promise more sophisticated tools and mechanisms to better counter cyber threats.Advancements in cybersecurity will stimulate the growth of the digital economy by nurturing trust,fostering innovation,and encouraging skill development.Key Recommended Actions:Foster cooper

38、ation at various national,regional,and global levels among relevant cybersecurity stakeholders,to address advanced cyber threats via regulatory,technical,and capacity-building efforts.Build technology system products based on security-by-design principles.Foster an integrated cybersecurity culture w

39、ithin private sector organizations to avoid internal siloed practices while considering organizational priorities and the required cybersecurity related investments.Comply with existing cybersecurity regulations,frameworks,and standards to implement advanced cybersecurity measures to safeguard syste

40、ms,data,and customer information.Facilitate public access to e-learning resources and focus on initiatives to spread awareness in cybersecurity best practices,including the prudent use of digital assets and encryption significance.Define and/or regularly update national future-proof cybersecurity st

41、rategies,policies,and action plans that address cybersecurity threats.Issue national cybersecurity advisories on emerging threats and propose relevant cybersecurity readiness initiatives to safeguard critical national infrastructure.Public Sector01Private Sector02IGOs,IOs,and others0310Digital Econo

42、my Trends Executive SummarySmart EcosystemFrom remotely controllable household appliances to technology-enabled smart cities,the Internet of Things(IoT)has significantly transformed smart ecosystems over the years.Projections indicate a substantial rise in the number of IoT-connected devices globall

43、y,expected to reach USD29 Bn by 203098.The proliferation of these smart ecosystems is poised to drive industry optimization,foster circular economy initiatives,and elevate customer experiences in interconnected digital cities.This shift will be enabled by enhancements to the underlying digital infra

44、structure and data processing capabilities and making smart ecosystems cybersecure through relevant regulations.Key Recommended Actions:Set comprehensive guidelines for security regulatory standards for IoT devices,promoting a baseline level of security that devices shall meet.Promote ongoing capaci

45、ty-building programs for relevant stakeholders on best IoT security practices.Establish Public-Private Partnerships(PPP)for the development of requisite large scale IoT infrastructure.Prioritize investments in high-speed connectivity to ensure seamless integration and operation of IoT devices.Engage

46、 in persisting R&D ensuring that IoT systems remain adaptable and scalable for future advancements.Cooperate with governments to encourage interconnectivity and interoperability of IoT devices.Public Sector01Private Sector02IGOs,IOs,and others0311Digital Economy Trends Executive SummaryGreen Economy

47、The growing awareness of climate change has driven substantial investments in the green economy,fueling initiatives on green innovation,circular economy practices and industry-driven sustainability efforts,that contribute to a more environmentally friendly world.The environmental sustainability sect

48、or is growing and is projected to reach USD83 Bn by 2032135 as it immerses in the digital economy,witnessing a surge in green technologies.The future outlook indicates increased adoption of green technology solutions,sustainable agricultural technology,and a rise in stringent regulations to facilita

49、te the green transition.Key Recommended Actions:Develop and continuously update relevant regulations to encourage pre-submission consultations while scaling up requisite infrastructure.Accelerate progress to achieve National Determined Contributions(NDCs)and UN Sustainable Development Goals(SDGs)by

50、establishing specialized structures that focus on the green economy.Promote domestic and foreign investments through capital market pathways to effectively scale up climate finance.Private sector organizations should strategically position themselves by implementing Environment,Social,and Governance

51、(ESG)practices.Actively engage in“on-the-job”learning initiatives and establish capacity building partnerships to ensure the availability of green skilled talent in the future.Promote the international harmonization of green taxonomy and standards,and enhance transparency,for a more coordinated appr

52、oach across sectors and regions.Strategically address trade barriers for environmental technologies within the International Harmonized Tariff System(IHTS)using green taxonomies.Public Sector01Private Sector02IGOs,IOs,and others0312INTRODUCTION03.03.INTRODUCTION13IntroductionIn over two decades,digi

53、tal technologies have reached about half of the developing worlds population1,revolutionizing society and advancing faster than any other innovation in human history.The pervasive nature of digital technology allows it to bridge gaps and address pressing challenges across various sectors,including t

54、he economic sector.With the benefit of creating new jobs and markets,expanding access to financing,and enhancing efficiency and transparency,digital technologies and platforms are becoming increasingly significant in tackling global concerns and responding to international events.Digital technologie

55、s can also significantly increase equality by improving financial inclusion,trade accessibility,connectivity,and public service delivery.The Digital Economy is a multifaceted and rapidly evolving concept encompassing a wide range of economic activities,transactions,and interactions in the digital re

56、alm.Its scope extends well beyond the confines of traditional industries,offering new avenues for innovation and societal transformation.It is an expansive and transformative force encompassing technological innovation,economic activities,and societal change.Its scope continually expands as digital

57、technologies evolve and new opportunities and challenges emerge.Understanding the Digital Economy is crucial for the public and private sectors,and civil society as they navigate this ever-changing landscape and harness its potential for economic growth and societal progress.The question to ask all

58、stakeholders across the Digital Economy is:In most cases,the public and private sectors and civil society find it challenging to identify the trends,the headwinds,and the opportunities they bring about and use this knowledge to their advantage.Are we equipped with the right information and tools to

59、understand how to navigate the complexities of the Digital Economy?Digital Economy Trends Introduction14A Digital Economy trend refers to the evolving economic landscape driven by the widespread use and integration of digital technologies,influencing how organizations operate,trade,and innovate.To e

60、nsure all stakeholders of the global digital economy are equipped with the correct information and tools to identify and act on the most critical trends of today,the DCO has developed the first edition of this annual report.Through meticulous screening and analysis,we have identified six themes Arti

61、ficial Intelligence,Digital Reality,Trust Economy,Cybersecurity,Smart Ecosystems,and Green Economy forming the core of our report.Our methodology for identifying and analyzing these themes and underlying trends involves a comprehensive blend of expert-led primary and secondary research.Each theme an

62、d trend undergoes an assessment utilizing the DCOs trend evaluation scoring matrix,complemented by quantitative and qualitative evaluations with subject matter experts.The DCOs Digital Economy Trends 2024 report is a one-stop shop for Digital Economy insights,providing guidance and a basis for colla

63、boration for all constituents of the global digital economy,turning insights into action through the power of the DCOs core functions and strength of the DCOs ecosystem.Digital Economy Trends Introduction04.DIGITALECONOMY TRENDSDIGITALECONOMY TRENDS04.16Digital Economy Trends Blueprintserve as catal

64、ysts that will propel the adoption of these digital economy trends.In this first edition of the report,the DCO Digital Economy Trends Blueprint has been designed to provide a holistic representation of the Digital Economy trends that have been identified in our analysis.The trends are categorized in

65、to six core themes for 2024,each with significant implications for all participants in the Digital Economy.The six themes Artificial Intelligence,Trust Economy,Digital Reality,Cybersecurity,Smart Ecosystems,and Green Economy each encompass up to three trends that are anticipated to impact the Digita

66、l Economy in 2024 significantly.This blueprint also presents the criticality*of each of the trends identified in the global digital economy in 2024 and maps each of the identified themes to specifically identified enablers that can unlock the full potential of the trend.The DCOs Digital Economy Tren

67、ds Blueprint can serve as a tool to identify synergies between the themes and trends outlined in this report,reflecting the dynamic and symbiotic nature of the digital ecosystem.Each trend converges and collaborates,creating a network of influences that collectively shape the future of the Digital E

68、conomy.For instance,trust emerges as a common thread,facilitated by blockchain in the Trust Economy,ensuring the reliability of sustainable practices in Green Economies and promoting confidence in digital innovations.Sustainability is omnipresent,with Smart Ecosystems and Green Economies mutually re

69、inforcing each other,while Digital Reality and IoT accelerate digital transformation.As the blueprint evolves over the years,it will enable the DCO to perform a longitudinal analysis of themes and corresponding trends,tracking how digital economy themes,trends,and enablers emerge,evolve,and transfor

70、m over time.Introducing the DCO Digital Economy Trends Blueprint Digital InfrastructureDataDigital TransformationDigital GovernmentEmerging TechnologyDigital SkillsThe enablers,which include:17Digital Economy Trends BlueprintGreen EconomySmartEcosystemArtificialIntelligenceTrustEconomyDigitalReality

71、CybersecurityDigitalEconomyTrendsTHEMESIncreasingcriticalityIncreasingcriticalityDigital InfrastructureDigital GovernmentDigital InfrastructureEmerging technologyDigital TransformationDigital SkillsEmerging TechnologyDigital SkillDigital InfrastructureDataDigital InfrastructureData Industry 5.0 andt

72、he Circular Economy Risk-averse IoT The Future of Defense Safeguarding in the Digital Age Amplified Gaming Sustainable Agri-Tech Green Technologies Regulation forGreen Transition Hyper-Personalizationthrough Virtual Experiences Interconnected Digitized Cities Blockchains GreenGreen Revolution Blockc

73、hain basedTransparent Governments Accelerating EnvironmentalSustainability Through Gen-AI AI-Powered Digital GovernmentGen AI for Cutting Edge Software DevelopmentThe DCO Digital Economy Trends Blueprint is comprised of elements which provide a holistic representation of the digital economy trends01

74、0203TrendsArtificialIntelligence(AI)Gen AI for Cutting Edge Software DevelopmentAI-Powered Digital GovernmentAccelerating Environmental Sustainability Through Gen-AI19The Evolution of Generative AIGenerative Artificial Intelligence(Gen AI)has a rich history,beginning with early AI research in the 19

75、50s and 1960s.It evolved through natural language generation,neural networks,and deep learning.Key milestones include the development of GANs in 2014 and the introduction of Transformer models that revolutionized generative AI,such as GPT-4,introduced in March 2023.These models are now widely used f

76、or various tasks and applications,but ethical and legal concerns,such as privacy,misinformation,lack of trust,and intellectual property rights(IPR),remain important issues in the field.Gen AI represents merely one aspect of AI.Predictive analytics and simulation using methods like machine learning(M

77、L)are becoming increasingly popular commercially.Similarly,chatbots are being increasingly powered by natural language processing,or NLP.The generative AI models have found widespread applications across the public and the private sector,as well as civil society,with the potential to unlock the next

78、 wave of productivity,creating business value and contributing to the growth of the digital economy.They are now essential tools for everything from manufacturing and customer service to healthcare and banking,radically changing how society and governments function.However,as generative AI continues

79、 to grow in importance,concerns related to ethics and the potential for misinformation and bias have taken center stage.Even while the results of AI are fascinating,significant human intervention is required to validate the findings,especially in regulated professions like the legal,medical,and fina

80、ncial services industries.According to projections,the market for generative AI is expected to reach a valuation of USD88 Bn by 2025,accounting for 30%of the overall AI market2.Generative AI has experienced remarkable levels of adoption,as exemplified by the rapid growth of ChatGPT,which garnered on

81、e Mn users within a mere five days and reached an astounding 100 Mn users in just two months3.As of November 2023,the platform had a weekly user base of 100 Mn4.By 2030,the market is likely to reach a volume of USD207 Bn,growing at a compounded yearly growth rate(CAGR)for the period 2023-2030 of 24.

82、4%5.StatistaGenerative AI Market Size(In USD Bn)Source:202420262028203025020015010005067157207110Generative AI Market Size%of IncreaseAIHow Will Gen AI Shape the Future Agendas of Private&Public Sectors?20Success to DateWhere Has Gen AI Been Implemented and What Impact is Being Generated?The recent

83、implementation of Generative AI within the Artificial Intelligence space is expected to have an even more significant impact on the job market.Thanks to its technological advancements,Gen AI is making waves in various industries,reshaping how businesses operate and create value.Some key applications

84、 of Generative AI include:can disseminate the potentially tacit knowledge of more able workers and help newer workers move down the experience curve7.These tools serve a dual function by improving the customer experience and diminishing the need for managerial involvement,thereby enhancing employee

85、retention.Select leading conversational AI tools available in the market include ChatGPT-4,IBM Watson Assistant,Kore.ai,Avaamo.ai,Amazon Lex,Oracle Digital Assistant,and Microsoft Bot Framework.In the software development lifecycle,AI is proving to be a big enabler in predicting faults in programs a

86、nd help alter the code to avert problems.AI programs can do this automatically,thus saving programmers significant effort.However,Gen AI must be looked at as more than just a tool for code creation.Repetitive work can be automated through Gen AI.When it comes to pattern synthesis and matching,such a

87、s translating between languages,Gen AI excels.The most evident application of this power in software delivery is for a novel form of code generation,where the AI converts one sort of code into another or transforms natural language into code.Locating the correct information from reliable sources is

88、time-consuming and it impacts the efficiency of software engineers.Finding the correct information is one of the biggest causes of inefficiency for software engineers.Finding the right place to look for information can be time-consuming,whether it is through internal documentation or internet search

89、es.Digital Economy Trends AI In 2020,the World Economic Forum forecasted that AI is expected to displace over 85 Mn jobs globally but generate 97 Mn new jobs by 20256.Embedded Generative AI tools would be integrated into existing word processing applications,spreadsheets,and email clients.Microsoft

90、365 Copilot is a generative AI assistant built into apps across the Microsoft 365 productivity suite.Use Case SpotlightGenerative AI-based conversational assistants21However,careful consideration of human oversight and biases,creativity,authorship,aesthetics,legal aspects,and the future of creative

91、work is still essential in deploying Generative AI.Finally,although at a nascent stage,AIs role in healthcare has been transformative,offering a wide array of applications that enhance patient care,streamline processes,and aid medical professionals in their work.It is used for medical image analysis

92、,disease prediction,drug discovery,personalized medicine,and telemedicine.The impact of AI on healthcare is driven by improved patient outcomes and cost reduction,but it also requires careful consideration of privacy and ethical concerns due to the sensitive nature of input data and output quality.A

93、 case in point would be Apollo hospitals which has plans to use more advanced Med-Pathways Language Model(PaLM)2,a LLM developed by Google that is trained in medical knowledge and can answer medical questions and generate genuine clinical text summaries9.Automation of artistic media and creative con

94、tent such as visual arts,music,and literature,can be facilitated through Generative AI tools,such as:Use Case SpotlightMicrosoft GitHub Copilot generates codes,helps predict and fix programming code errors before the applications are put into production.It identifies reasons for program failures and

95、 predicts potential issues.Copilot CHAT,a Gen AI tool from GitHub,expands on the coding help features already available in Copilot to offer developers context-specific and natural language support.Use Case SpotlightFerrero employed AI to create 7 Mn unique versions or labels for its Nutella hero pac

96、k.Different patterns and colors were blended autonomously for each design,assigning a unique ID code to ensure individuality across all labels8.This has the potential to increase efficiency and effectiveness in marketing and communication strategies.ScribeAlphaCodeCohere Generate Google Bard BingSyn

97、thesia010204060305Digital Economy Trends AI22Digital Economy Trends AIEnvisioning 2024Introducing the Gen AI global trendsIn the dynamic intersection of Generative AI and digital economy,we uncover a possible roadmap that not only drives Government,business,and civil societies into a new era of digi

98、tization,but also redefines the future of our civil society.While private entities are striving to optimize their internal operations and deliver more personalized experiences to their customers,governments around the world are facing pressing challenges to improve citizen services,modernize digital

99、 infrastructures,and deliver more effective policies on concerning matters such as climate change.The urgent challenges that fill the global agenda of both private and public sectors are expected to be tackled promptly and with heavy investments in emerging technologies such as Gen AI.As a result,th

100、e shift of this technological paradigm is projected to unleash an unprecedented impact and opportunities across three focus areas “Product Design and development,Governance,Policy and Regulation Development and Environmental Sustainability”,which are expected to emerge into the following three key t

101、rends,directly addressing some of the 2024 world agenda items:01Gen AI for Cutting Edge Software DevelopmentT r e n d02AI-Powered Digital GovernmentT r e n d03Accelerating Environmental Sustainability Through Gen-AIT r e n d23Digital Economy Trends AIBy streamlining and accelerating turnaround time

102、through auto-generating personalized designs&prototypes,and software development automation,Gen AI offers invaluable tools to facilitate the rapid development of innovative products and services.According to one subject matter expert,“With a capacity to think,act,and even learn like human beings,AI

103、has begun catalyzing deep structural changes in the nature and application of tool-mediated design.As thinking machines,generative AI can now test,debug,and deploy software without the need for human intervention.AI is a force multiplier with the capacity to reshape the nature of human engineering a

104、nd design.Amongst the many sectors that have been embracing this technology to reach a competitive edge,the ICT sector has uncovered great potential in the AI-powered low-code-no-code(LCNC)capabilities.ICT is leveraging next generation technologies to reshape the process of software development and

105、fuel the growth of low-code-no-code(LCNC).This intrinsic value of LCNC lies on the drastic reduction in turnaround time(TAT)for coding,with a significant shift away from tech-savvy dependency logic currently in place.This shift could enable business professionals to design and develop end-to-end sof

106、tware applications by themselves.Big tech companies(e.g.,Google AppSheet)have started to invest heavily in such platforms to support users with the development of apps through automated processes without writing code.For businesses,adding generative AI to low-code and no-code platforms presents a si

107、gnificant opportunity since it can accelerate development cycles by reducing adoption barriers and empowering business users with more ability to design apps.By 2026,it is projected that at least 80%of low-code development tool users will come from outside of established IT departments.This is drive

108、n by the aim to achieve the level of digital proficiency and delivery speed required for the contemporary agile environment10.Gen AI for Cutting Edge Software DevelopmentTrend 1:Google Clouds foundation models allow developers to build next-generation applications with access to multimodal models fr

109、om Google,including code generation and code completion models with Codey11.Use Case Spotlight24Digital Economy Trends AIGovernments are adopting generative AI in many aspects of their governance and processes.Generative AI-powered automation is essential in helping public sector organizations strea

110、mline their operations by automating repetitive and routine tasks.In summary,generative AI can automatically produce comprehensive reports,reducing the administrative workload for public administration and making data analysis and report compilation more efficient,thereby facilitating quicker decisi

111、on-making.Another area where Gen AI proves helpful is in accessing Legal documentation,simplifying the creation of legal documents for the public to comprehend.This not only lowers the complexity of the law,but also increases accessibility,lessening the necessity for legal counsel.Moreover,by analyz

112、ing historical spending patterns,conducting trend-based forecasting of future needs,and enabling well-informed decision-making regarding resource allocation,Generative AI in government has the potential to completely transform budgeting procedures,making them efficient and fast-tracking them.Using a

113、 Generative AI service desk,government agencies can automate the examination of a significant volume of financial and other relevant data,allowing AI to find patterns and trends in this data to detect possible tax evasion or fraud with greater accuracy.Gen AI plays a pivotal role in optimizing polic

114、y-making processes by conducting thorough assessments of complex datasets contributing to the formulation of factual,evidence-based policies to facilitate informed decision-making making processes for public administrations.By expediting the evaluation of potential impacts,Generative AI empowers gov

115、ernments to respond quickly and efficiently to pressing challenges,including but not limited to public health crises and environmental concerns.Gen AI is playing a significant role in simplifying e-Government Services.The reduction of rusty,long,and static bureaucratic procedures has long been debat

116、ed among public institutions around the world.Whether it is chatbots addressing and solving citizens requests,automated document verification and validation,smart resource allocation through advanced predictive analytics,or preventive fraud detection applications,Gen AI has the power to revolutioniz

117、e e-services and enhance core operational activities,resulting in less significant administrative burdens,and improved citizen satisfaction.AI-Powered Digital GovernmentTrend 2:Gen AI has the power to revolutionize e-services and enhance core operational activities,resulting in less significant admi

118、nistrative burdens,and improved citizen satisfaction.25Digital Economy Trends AIAccelerating Environmental Sustainability Through Gen-AITrend 3:Despite the development and deployment of AI models,including Gen AI,such systems can require significant computational power.This may demand increased ener

119、gy consumption,enormous quantities of water for cooling and potentially electronic waste through the shorter lifecycles of hardware components,its meticulous processing and interpretation of environmental data.These place Generative AI at the forefront of the innovations that can directly endorse an

120、d elevate the efforts made within the sustainability cause.By providing invaluable insights into key trends,patterns,and potential environmental risks across concerning parameters such as air and water quality,Gen AI represents a tangible opportunity to address some of the worlds key environmental c

121、oncerns.AI capabilities extend to pollution sources monitoring,endorsing environmental standards enforcement and addressing key global concerns related to industrial emissions and illicit waste disposal.By scrutinizing data from diverse sources such as satellite imagery and sensor networks,Generativ

122、e AI contributes to inform regulatory policies aimed at tackling environmental standard enforcement.AI is also being used to enhance climate change monitoring&interventions.AI-enabled forecasting modeling,can also support climate change researchers and organizations thoroughly examine historical dat

123、a and produce ad-hoc simulations on a multitude of future scenarios,enabling policy-makers to formulate more informed and precise mitigation plans,addressing not only human awareness of climate change matters,but also allowing relevant entities to predict and mitigate possible natural disasters thro

124、ugh adequate responses such as early warnings and effective disaster response planning.With the worlds population increasing at a fast pace,global food production has been a key area of debate amongst local governments and international institutions and consortiums.In agriculture,Gen AI is believed

125、to have the potential to become a primary contributor in the optimization of current operations aimed at ensuring large-scale improvements on resource allocation and utilization.Through its core technological capabilities,Generative AI offers critical data elaboration on key agricultural components

126、such as water usage,energy consumption,soil conditions and crop health,enabling farmers to enhance productivity while mitigating environmental impact.To provide a thorough energy study,generative AI may examine the layout,materials used in construction,and surrounding circumstances of the structure.

127、This analysis can help the facility comply with the most recent sustainability standards by pointing out possible energy savings and making recommendations for upgrades.Generative AI can help uncover opportunities for energy savings and sustainability improvements that might not have otherwise been

128、thought of,as well as save time and money.It can also increase the accuracy and dependability of energy audits.The energy performance rating of a buildinga gauge of energy efficiency used in certification schemes like the LEED(Leadership in Energy and Environmental Design)programcan be automatically

129、 calculated by generative AI.Use Case Spotlight26Digital Economy Trends AIApproaching 2024An Overview of Key Enabling Forces for AI including Gen AIThe potential for Generative AI to shape economies is evident,as demonstrated by the earlier highlighted applications.While the degree of these impacts

130、may vary across different digital economy components,this section will delve into three macro enablers that are pivotal to expedite the adoption and growth of Gen AI within next generation economies.Upskilling Talents&Promote Human Machine CooperationLaying Solid Digital FoundationsAs observed in pr

131、evious technological shifts,Gen AI is expected to pose risks for certain existing jobs while simultaneously creating opportunities for new ones.The pace at which the transition toward acquiring new skill sets appears to be accelerating with the introduction of advanced technologies.Following the fas

132、t fish eat the slow fish analogy,visionary and better equipped organizations have the opportunity to gain a competitive edge by establishing a proactive transition strategy to introduce cultural acceptance,functional frameworks and governance policies around human and machine collaboration,in additi

133、on to facilitate learning and development activities aimed at upskilling current employees on the impact and implications of innovative and disruptive technologies such as Gen AI.In a time marked by rapid technological evolution,the integration of Generative AI stands as a transformative force,promi

134、sing innovation,efficiency,and opportunities for nations,organizations,and individuals alike.However,with Gen AI integration requiring a great degree of digital readiness and infrastructural modernization,organizations around the world are called to review their digital maturity to ensure adequate i

135、nfrastructures that can integrate,absorb,and scale the value of Gen AI.The first step to accommodate the power of Gen AI across public and private entities begins with ensuring solid data governance and quality assurance frameworks and processes to enable access to robust and quality datasets.This,a

136、long with scalable infrastructures such as cloud-based solutions,which enable seamless system integration,and a sound cybersecurity system,can help organizations unlock the real value of Gen AI applications and pave the way toward a future made of innovation,enhanced efficiency,and boundless opportu

137、nities.27AI-focused regulatory frameworksWe have observed significant emerging efforts from governments and regulatory authorities in the attempt to tackle some of the pressing topics related to the Artificial Intelligence ecosystem.For instance,the EUs AI Act is the worlds first comprehensive AI la

138、w designed with the objective of establishing clear obligations for AI providers and users based on the degree of risk associated with their use of AI functionalities,including Gen AI,ensuring a safer,more transparent,non-discriminatory,and environmentally friendly adoption of this technology.The AI

139、 Act establishes a clear regulatory framework for AI development and will provide businesses with the certainty they need to invest in AI and bring innovative products and services to the market.It takes a risk-based approach to regulation and the applicability of regulation will depend on the level

140、 of risk posed by an AI system.This approach avoids stifling innovation while still protecting public safety and fundamental rights.The Act includes a number of provisions including support for AI sandboxes,real-world testing,and the development of European AI standards to support AI innovation.The

141、AI Act also includes a number of restrictions on the use of AI,designed to protect public safety,fundamental rights,and democracy.Key provisions mentioned in the act that are most relevant to businesses include a ban on certain AI applications,stringent requirements on high-risk AI systems,transpare

142、ncy and explainability and data governance12,13,for instance,the EUs provisional deal pertaining to the use of AI by the government in biometric surveillance.To conclude,the integration of Gen AI is more than just a technological advancement,but rather a strategic move for businesses and governmenta

143、l entities that aspire to prosper in the digital era.With governments and regulators increasingly focusing on the vast artificial intelligence landscape,how and where are public sector entities prioritizing efforts to derive value from it in 2024?Digital Economy Trends AI28Key TakeawaysTackling Gen

144、AI in 2024As we conclude our analysis of the applications,future scenarios,and implications of Gen AI,it becomes self-evident that the transformative power this technology holds demands a comprehensive and collaborative response from multiple stakeholders,namely private businesses,public institution

145、s,as well as citizens.Implications and Recommended Actions the Public Sector28Regulatory LandscapeImplicationsPublic sector organizations are facing the challenge of implementing new regulatory frameworks that support technological advancements(such as AI)and ensure adequate balance between innovati

146、on,ethical,and socio-economic concerns.Recommended ActionsThe public sector should partner with relevant private sector stakeholders,and others,to create regulatory sandboxes for responsible,yet innovative development of AI.These temporary,adaptable frameworks would allow for rapid experimentation w

147、ith clear accountability and liability measures,fostering innovation within a controlled environment.Additionally,the public sector should invest in training programs to equip government personnel with the knowledge needed to effectively regulate this evolving technology.Citizens Inclusivity&Empower

148、ing GovernanceImplicationsPromote digital education,bridging the digital gaps with tailored interventions to enhance AI potential for as many citizens and businesses as possible.Recommended ActionsPublic entities should make significant investments in digital infrastructure,coupled with the developm

149、ent of supportive policies within institutions and targeted public awareness campaigns,to empower individuals with digital literacy and facilitate equitable access to the digital ecosystem.2929Business&Ethical ImpactTransparency and AccountabilityImplicationsAcknowledge the inevitable economic trans

150、formation due to AI-driven automation and the challenges associated with its development,such as Intellectual Property Rights(IPR),induced bias and potential job displacement.Recommended ActionsPrivate sector organizations must prioritize employee development through robust upskilling initiatives.Th

151、is requires cultivating a culture of adaptability and open-mindedness to embrace innovation.Additionally,companies should establish ethical frameworks that guide responsible AI deployment and ensure its positive impact.Collaborative efforts with educational institutions are vital to ensure curricula

152、 remain relevant and responsive to the evolving needs of the job market.ImplicationsGovernments must protect the credibility and organic evolution of AI by ensuring that private&public sectors are held accountable for any misuse of such technologies.Recommended ActionsPrivate sector organizations sh

153、ould ensure responsible and trustworthy use of AI in public services by implementing robust transparency and accountability measures.This includes establishing well-defined compliance frameworks,conducting regular audits of AI systems,and providing accessible channels for citizens to report concerns

154、 and seek redressal.Implications and Recommended Actions for the Private Sector3030Compliance,Governance&RegulationsCollaboration&AlliancesSustainable InnovationImplicationsCompanies should diligently adapt to evolving regulatory requirements and compliance frameworks as per regional and global best

155、 practices on AI technologies.Recommended ActionsThe Private sector should actively collaborate with regulatory bodies and contribute to shaping AI policy,leveraging industry expertise to foster regulations that strike a balance between fostering innovation and safeguarding economic and social well-

156、being.Additionally,ensure adherence to evolving regulatory requirements,fostering a culture of compliance and transparency across all aspects of operation,particularly within algorithm development.ImplicationsEstablish strategic cross-sector and cross-country collaborations to stay updated on the la

157、test developments in the field of AI.Recommended ActionsThe private sector,and other stakeholders shall foster a competitive edge and facilitate mutually beneficial collaborations,to promote a culture of coopetition.This involves nurturing an ecosystem where businesses can thrive together and establ

158、ish liaison roles to bridge communication gaps locally and internationally.Concrete steps toward achieving this goal include creating joint research consortia and shared service platforms.ImplicationsAchieve balanced innovation that grows with responsible and sustainable practices at heart.This emph

159、asis the significance of AI solutions that propel advancement while upholding ethical standards and being environmentally friendly.Recommended ActionsPrivate sector organizations should embed sustainability and responsible innovation as fundamental principles within their ecosystem,proactively asses

160、sing and addressing the long-term societal implications of artificial intelligence applications,taking specific measures to mitigate any potential adverse effects.31Data Privacy and SecurityGlobal CollaborationImplicationsThe effectiveness of AI applications is rooted in the quality and relevance of

161、 the datasets used.Hence,Public and Private sectors institute and uphold rigorous data privacy and security standards while managing datasets.Recommended ActionsTo foster trust and mitigate security concerns among users and stakeholders,private sector organizations should prioritize the implementati

162、on of robust data protection measures.This includes employing encryption technologies,conducting regular audits of data handling practices,and ensuring strict adherence to all relevant regulatory requirements.ImplicationsThere is a need for global cooperation among IGOs,IOs,NGOs,and relevant private

163、 sector organizations to ensure a cohesive approach regarding AI governance.Recommended ActionsIGOs,IOs should encourage active involvement in international forums dedicated to AI,cultivating,and promoting partnerships and collaborations between international entities,academia,industry experts,and d

164、iverse organizations to achieve convergence on global governance standards for AI technologies.Implications and Recommended Actions forInter-Governmental Organizations(IGOs),International Organizations(IOs),and others310102TrendsTrustEconomyBlockchains Green RevolutionBlockchain-based Transparent Go

165、vernments33Blockchain FundamentalsThe blockchain,a distributed ledger technology(DLT)initially conceived as the tech-enabler for the cryptocurrency Bitcoin,has evolved into a revolutionary force impacting various industries.At its core,DLT can be set up to allow businesses or civil societies to dire

166、ctly record information of any kind in a structured,chronological,and incorruptible manner.The decentralized nature enables enhanced security and transparency.Blockchain can be used to track the ownership of assets like money or property,to record agreements between parties,or simply to log events o

167、r activities happening in a business environment like a supply chain network.As we delve deeper into this theme,the sections will explore the technologys recent application,use cases,future opportunities,and implications offered by blockchain in the context of the digital economy.While initially ass

168、ociated with cryptocurrencies,the potential applications of blockchain extend far beyond the crypto space.In 2015,Ethereum was launched,further broadening the scope of blockchain technology to include the automation of more complex activity using“smart contracts”.Smart contracts can be used to maint

169、ain registers of asset ownership,or to automate complex business workflows that involve information and value exchange among multiple parties.The global blockchain technology market size was valued at over USD11 Bn in 2022 and is expected to grow at a CAGR of nearly 60%,with a projected global value

170、 of USD470 Bn by 203014,while financial applications account for roughly a third of this activity,adoption across many sectors is expected.The projected growth in service demand is coupled with projected growth of both consumer and corporate adoption of blockchain and digital asset technologies.In 2

171、023,crypto transactions by volume grew more in Saudi Arabia than any other country(12%)signaling a sharp increase in consumer demand15.The Rise of Blockchainfortune business insightsBlockchain Linked Services Market Size(In USD Bn)Source:20242026202820307060504005002004001003000450150350502501020302

172、818447072Blockchain Technology Market Size%of IncreaseTrust EconomyUnlocking the digital asset opportunity,verifying the green revolution,and enabling next gen digital services 34Digital Economy Trends Trust EconomyAs we dive into the logic of this technology,we will introduce several applications a

173、nd use cases to illustrate how its transformative impact is spreading across different domains such as financial services,Information Management,identity management,healthcare,and supply chain&logistics.conduct real-time domestic and international remittances,diminishing settlement times and minimiz

174、ing transaction expenses.Digital Securities:The global market for issuance,management and trading of securities represents a vast opportunity space for blockchain technologies,and a dazzling array of new platforms are emerging to enable a new value chain for tokenized securities among regulated fina

175、ncial institutions,across asset classes like funds,bonds,equities,and derivatives.Atomic Settlement:In contrast to legacy securities trading processes(which can take days to complete),blockchains are able to offer instant atomic settlement,meaning both the buyers asset(e.g.,digital money)and the sel

176、lers asset(e.g.,units of a digital bond)can be exchanged instantly and at the same time.In addition to the operational benefits of faster settlement,atomic settlement also means counterparty risk among traders is reduced.Know Your Customer(KYC):In an increasingly digitized world,digital identity ver

177、ification becomes pivotal for safe,secure,healthy,and sustainable socio-economic infrastructure.Blockchain improves the process of verifying Applications in Financial ServicesSuccess to DateHow Blockchain is Changing the Game The value of DLT as a transformative force is perhaps most obvious in the

178、financial sector,trends here range from the volatile web3 and crypto sector,to the digitization of regulated securities and capital markets infrastructure,and the creation of new forms of regulated digital money among central banks and supporting financial institutions.The Canton Network is a privac

179、y-enabled platform that facilitates interoperability and synchronization among isolated financial systems.It operates as a decentralized infrastructure,connecting independent applications using Digital Assets smart-contract language,Daml.This“network of networks”enables financial systems in highly r

180、egulated industries to interoperate with proper governance,privacy,permissions,and controls.The solution provides institutions with a secure and reconciliation-free environment,allowing assets,data,and cash to synchronize seamlessly across applications.This promotes innovation,efficiency,and improve

181、d risk management for financial institutions,enabling them to offer new and innovative products to their clients16.Use Case SpotlightDomestic and Cross-border Digital Payments:By removing intermediaries from the equation,blockchain empowers financial institutions to35Digital Economy Trends Trust Eco

182、nomyidentities through KYC procedures,leveraging securely generated tamper-proof records of customer data.It reduces the probability of identity theft while ensuring compliance with regulatory requirements.In the healthcare sector,where data,integrity,and security are cardinal pillars,blockchain has

183、 emerged as a transformative solution that provides seamless operationalization amongst activities such as pharmaceutical traceability and clinical trials where the technology provides credibility and authenticity of the records and trial results,thereby enhancing overall trust and reliability in he

184、althcare processes.Pharmaceutical Traceability:Blockchain applications can help establish an adequate and incorruptible pharmaceutical traceability process by creating unalterable records of its supply chain.This ensures the authenticity of medications,mitigating the risk of counterfeits entering th

185、e market.Research and Clinical Trials:Blockchain not only improves the credibility and reliability of clinical trials by facilitating secure and accurate data-sharing but also has the Applications in HealthcareBlockpass offers a blockchain-based digital identity solution that helps organizations ope

186、rating in highly regulated industries such as financial services.This innovative company offers a one-stop shop for digital identity verification using a dashboard through which end-users can easily create a verified portable digital identity that can be used for any KYC process validation instantly

187、17.Use Case SpotlightPatientory is a collaborative blockchain platform designed to facilitate a more secure exchange of information.Patientory has the capability to autonomously validate the presence of insurance coverage for a patient,overcoming the direct dependency on insurance details and respon

188、se time.It fully decentralizes access rights,gives patients control over the distribution of their medical records,and enables medical professionals to quickly and safely diagnose patients based on a clearer medical history.Moreover,pharmaceuticals and clinical trials can effortlessly identify top c

189、andidates for different trials19.Use Case Spotlightpotential to reduce the time and effort required for tracing medicines linked to adverse events.By implementing a distributed ledger infrastructure,parties across the supply chain can contribute information to a shared database,addressing regulatory

190、 and data security concerns and enabling efficient tracking of adverse events associated with medicines18.Applications in Supply Chain&LogisticsAs the supply chain industry faces multiple challenges,including inefficiencies,lack of transparency and a dated exposure to fraudulent operations,DLT can s

191、ignificantly improve the operational efficiency and the auditability of the entire value chain.A number of use cases from around the world highlight a multitude of benefits derived from the operationalization of DLT in this context.Additionally,the integration of digital supply chain platforms with

192、ports,border control,36customs,and tax authorities can facilitate further process streamlining,enhancing coordination and communication across various entities involved in the supply chain.Blockchain brings unparalleled visibility to the complex passage of goods across the supply chain,serving as a

193、guarantor for consumers,organizations,and public entities.Real-Time Tracking:Delivering real-time insights into the end-to-end supply chain of a product by recording,authenticating,and validating transactions and progress data-everything from shipment locations to temperature information at every st

194、age.This empowers stakeholders to monitor the movement of goods,validate their authenticity and identify potential bottlenecks in a timely manner.Anti-Counterfeiting Measures:With the proliferation of pirated and counterfeit goods estimated at nearly USD500 Bn20,organizations and public authorities

195、could tackle this through QR codes or radio-frequency identification tags(RFID)added to a blockchain.By doing so,civil societies,businesses and governments could easily verify the authenticity of products,in particular when processing cross-border goods movements.Digital Economy Trends Trust Economy

196、Oracle developed Intelligent Track and Trace,a blockchain-based solution designed to optimize and enhance supply chain and logistics operations.Converging technologies,including blockchain,these innovative solutions provide end-to-end visibility into the movement of goods throughout the supply chain

197、,including tracking the origin,transportation and delivery of products and enabling businesses to make informed decisions based on real-time data.The system helps reduce errors,minimize delays,streamline logistics processes,and enhance the overall supply chain efficiency21.Use Case Spotlight37Digita

198、l Economy Trends Trust EconomyIn the dynamic landscape of technological evolution,blockchain can play a pivotal role in helping organizations advance toward a more interconnected and sustainable world.Globally,governments and businesses are showing increased interest towards sustainability,which is

199、evident through the increased participation witnessed in sustainable summits,including UN Climate Change conferences(or COPs).As we delve into the focus areas for 2024“Environmental Sustainability and Regulations,Policy,Governance and e-Governments”,we attempt to anticipate how the disruptive influe

200、nce of blockchain is set to impact,and perhaps redefine,sustainability initiatives and next-generation governments modus operandi through the below trends:Envisioning 2024Roadmap for a Sustainable Future on the BlockchainBlockchains Green Revolution01T r e n d02T r e n dBlockchain-based Transparent

201、Governments38Digital Economy Trends Trust EconomyBlockchains Green RevolutionTrend 1:Global initiatives such as the Voluntary Carbon Market(VCM)22 and carbon credits monitoring,aim to mitigate or eliminate the adverse impacts of climate change.With the introduction of the VCM,the global community ca

202、n make encouraging environmental progress by introducing voluntary net-zero carbon emission targets for businesses and,similarly,by incentivizing cross-nation collaborations to attain ambitious Nationally Determined Contributions(NDCs).Yet,there are multiple challenges faced,like double accounting a

203、nd inaccurate reporting,due to lack of transparency and standardization23.These challenges emerge from a lack of clarity in both private and public sectors regarding climate goals,carbon accountability mechanisms,interoperability issues,and transparency in tracking systems.The United Nations Develop

204、ment Programme(UNDP),responsible for supporting over 120 countries in enhancing NDCs,has concluded that a lack of integrated data systems and inconsistent measuring methods are critical challenges that must be addressed to ensure global coordination in achieving climate targets24.The potential role

205、of blockchain technology in the context of climate targets is twofold.Firstly,DLT-based systems can enable transparent data collection,effective measurement,reporting and verification(MRV),and facilitate scalable and verifiable climate action by providing trustworthy accounting systems that align in

206、centives among governments and private sectors,fostering trust within the ecosystem.Secondly,blockchain may offer an attractive technology for the development of accessible,efficient and verifiable markets for carbon trading among organizations seeking to ensure emissions are fully offset.In summary

207、,Blockchain technology has the potential to supercharge progress toward environmental sustainability by addressing challenges like misreporting.The year 2024 may witness organizations incorporating and encouraging the use of blockchain technologies as a strategic measure to enable transparent MRV an

208、d undergo a transformative shift toward accountability and collaboration in achieving climate targets.According to CJ Hetherington,Co-Founder of Atlantis World,Blockchain technology has the potential to incentivize changed behavior for the better of the planet,empowering communities to monetize stew

209、ardship of their natural capital and ecological assets2539Digital Economy Trends Trust EconomyIn the context of climate action,Blockchain has the potential to serve as an effective tool for monitoring and tracing initiatives aimed at mitigating and preventing climate change.With its transparent and

210、decentralized structure,and powered by its immutable ledger of transactions,Blockchain enables better tracking and reporting of reductions in carbon emissions throughout the value chain.However,it is essential to note that the energy consumption of certain blockchain networks,particularly those util

211、izing proof-of-work consensus,still pose environmental concerns.In 2020,the data centers and transmission networks supporting digitalization contributed to 0.6%of the total greenhouse gas emissions28.Despite this,the technology encourages more participation,transforming climate action into a network

212、ed effect.Through smart contracts,Blockchain provides the capability to automatically execute agreements for climate-action incentivization based on predetermined conditions.In the transition to a circular economy,blockchain could assume a vital position.A circular economy incentivizes e-waste manag

213、ement to reuse products instead of discarding them,aiming to reintegrate waste into the economy,promoting environmental protection,resource efficiency and optimal use of natural resources,helping in combating critical issues like climate change and pollution.As a pioneer of regenerative finance(ReFi

214、),Thallo provides a Carbon-as-a-Service(CaaS)solution that enables businesses to save money,drive customer engagement while making an impact on the planet,by connecting them with the carbon market,streamline their environmental actions and offer carbon offsetting options to their customers.Thallo pr

215、omotes voluntary carbon market and turns every transaction into a powerful climate action26.Use Case SpotlightAlgorand is driving the convergence of conventional and decentralized models into a unified system that is seamless,inclusive,and secure.Used by over 500 organizations,Algorand is designed t

216、o facilitate the development of next-generation financial products and the exchange of value,helping companies to effortlessly transition into the future of finance(FutureFi)27.Use Case SpotlightGlobal electrical and electronic waste(e-waste)is set to grow to 75 Mn metric tons by 2030,according to t

217、he United Nations Global E-waste Monitor29.40Digital Economy Trends Trust EconomyBlockchain facilitates tracking and management of materials and components across supply chains,enabling increased levels of material reuse,remanufacturing,recycling,or composting.The technology enables transparent digi

218、tal supply chains,providing an unchangeable transaction record that validates product origins.By storing these details,Blockchain enables end consumers to see the entire chain of materials and production steps associated with a product access to end consumers through QR codes.Further,it promotes awa

219、reness of the products origin and enables consumers to make informed decisions about product maintenance or disposal.Enhanced transparency in material flow not only reassures consumers but also encourages more sustainable consumption behaviors.Another aspect of blockchains green revolution is food w

220、aste management.Food and Agriculture Organization(FAO)estimates that each year,approximately one-third of all food produced for human consumption in the world is lost or wasted31.Blockchain technology is introducing a new phase of food waste mitigation by enhancing traceability to tackle food safety

221、 concerns and promote sustainability by eliminating inefficiencies in the food supply chains.Blockchain can potentially increase visibility enabling food producers,distributors,and retailers to identify chances for reducing wastage across the entire supply chain.Coca-Cola in South Africa,has partner

222、ed with BanQu with the goal of ensuring that 100%of its packaging becomes recyclable by 2025,aiming to drive a circular economy,and financially empower recycling collectors in the process.BanQu utilizes blockchain-powered online supply chain tracking and payment connections to trace recycled materia

223、ls throughout the value chain.This system generates a permanent transaction history,enabling recycling collectors and waste pickers to demonstrate their income,thereby enhancing their bankability.Additionally,it allows Coca-Cola to effectively monitor and trace recycled materials across the value ch

224、ain30.Use Case SpotlightIBM Food Trust is a blockchain solution that uses trust to build transparency across the expanding food supply chain.It connects participants through a permissioned,immutable,and shared record,and provides authorized users with immediate access to the food supply chain data i

225、ncluding history,current location,test data and certifications,among others32.Use Case Spotlight41Digital Economy Trends Trust EconomyBlockchain-based Transparent GovernmentsTrend 2:Skepticism toward government services is mainly attributed to insecure handling of citizen data and less efficient ope

226、rational processes with high turnaround time.To tackle such issues,governmental entities are exploring new,innovative ways to bring transparency and efficiency into both their internal processes,and the services offered to the public.In 2024,public entities could prioritize blockchain applications a

227、s a direct means to enhance citizens trust,confidence and improve engagement in government e-services,as well as in the development of data-driven policies.According to a subject matter expert,“the rationale for closed systems of decision-making in which citizen participation is confined to voting o

228、r interest group activism belongs to a different era.In an era of networks,we now need tools that bridge algorithms with new forms of collaborative decision-making.”Governments around the world are expected to redefine community decision-making conceptually and practically,by introducing governance

229、platforms.These platforms aim to enhance citizens participation and inclusion,overcoming the opacity of current systems through auditable voting mechanisms.A similar principle applies to the use of smart contracts to automate transactions and simplify bureaucracy.This facilitates efficient transfer

230、of ownership,making it easier for civil societies and businesses to buy and sell properties,as well as to request,issue and store legal documentation,and public service transactions.Estonia has implemented blockchain-based solutions to ensure data integrity and mitigate threats to national data.The

231、Estonian blockchain infrastructure covers e-services that span across sectoral base registries like health,law and court systems,police data,banking,business,and land ownership registration33.Use Case Spotlight42Digital Economy Trends Trust EconomyThe unique strength of blockchain lies in its decent

232、ralized architecture.This fortifies the systems security and minimizes susceptibility to fraudulent activities.When looking at the swift transactions of digital economies,security holds paramount importance,and blockchain effectively meets this requirement.In this section,we will explore key driving

233、 factors that can create foundational ground for blockchains adoption across different areas such as sustainability and e-governance.Encouraging the exploration and testing of new technologies Though the benefits of universally accessible platforms part of the appeal of blockchain technologies,the d

234、iverse array of blockchain platforms currently in use have created a new generation of interoperability challenges that will need to be addressed before the vision of blockchain is fully realized.Encouraging cross-collaboration to create proof of concept can accelerate the deployment of blockchain i

235、ntegration and its adoption across key areas of focus for organizations and civil society.Proof of concepts should address regulatory compatibility,security,energy consumption,scalability,interoperability,and data governance concerns.This is expected to provide an adequate level of reassurance among

236、st key stakeholders on the operational feasibility,viability,and sustainability of this technology.Improved Accessibility&Intuitive UX&UIDeveloping user-sensitive interfaces for blockchain applications can be a vehicle to drive awareness and demand,simplifying the user experience to encourage broade

237、r adoption and making blockchain easily accessible to people and organization without requiring technical knowledge.Approaching 2024How Can Blockchain Act as a Catalyst for the Digitization of Global Economies?43Digital Economy Trends Trust EconomyRegulatory Clarity&CertaintyAs with any other innova

238、tion,regulatory bodies should pave the way for blockchain applications by creating a favorable regulatory ecosystem that can minimize uncertainty in terms of security and privacy,interoperability standards,scalability,and compliance for businesses,investors,and civil societies,hence encouraging adop

239、tion.Moreover,platforms operating across multiple jurisdictions may encounter the challenge of meeting differing,or even conflicting regulatory requirements,thereby complicating the landscape for new market entrants.In this context,regulators can play an important role in fostering growth by activel

240、y engaging with innovators and supporting the testing of new technologies.Many governments have taken proactive measures,such as launching regulatory sandboxes to facilitate the early-stage testing of new technologies and services.For example,UKs Digital Securities Sandbox,allow financial market par

241、ticipants to conduct various activities related to digital securities under a temporarily modified legislative and regulatory framework34.A Skilled WorkforceWith the integration of blockchain solutions into global markets,the world will be facing a significant increase in demand for professionals wh

242、o can design,implement,and manage blockchain solutions.Currently,blockchain penetration in the job market indicates low levels of maturity across most geographies globally,reaching its peaks primarily in the USA and the UK,followed by Germany and France35.This highlights a critical gap that needs to

243、 be addressed through the creation of new talent and upskilling of the existing workforce to facilitate a smooth and productive transition into a blockchain-powered world.44Key TakeawaysHow Can Stakeholders Address Blockchain Challenges and Capture its Opportunities in 2024?Having analyzed the key t

244、rends within the trust economy and their enablers,we summarize key takeaways to help stakeholders explore what next steps are recommended to derive maximum value from it.As thoroughly discussed,blockchain has the potential to contribute significantly to the global economy.Public and private sector o

245、rganizations must formulate appropriate strategies for this opportunity space,taking into consideration their objectives,ambition,and risk-reward appetite.Implications and Recommended Actions for the Public Sector44Regulatory LandscapeImplicationsLack of standardized blockchain regulations creates r

246、egulatory uncertainty as well as data privacy concerns which may affect blockchain adoption for public and private sectors.Moreover,siloed blockchain networks can cause inefficiencies and limited collaboration.Recommended ActionsThe public sector shall develop a national blockchain and digital asset

247、 strategy,outlining government goals across all sectors and fostering public-private cooperation.In addition,the public sector should encourage interoperable standards for seamless data exchange between blockchain networks,and launch regular awareness campaigns to inform and educate citizens on the

248、applications of blockchain in digital public services.Personnel SkillsetsImplicationsLack of staff with blockchain related expertise amongst public institutions may present a risk and hinder the adoption and expansion of blockchain in e-governance applications.Recommended ActionsPublic entities shou

249、ld invest in dedicated blockchain capacity-building programs to build expertise amongst public sector employees and help them understand blockchain applications in public administration,creating a culture of innovation through education.4545Supply Chain ManagementDigital Readiness for Systems Integr

250、ation and interoperabilityImplicationsBlockchain has a transformative impact on e-governance and supply chain systems by tackling common inefficiencies and quality assurance concerns faced in current supply chain management processes,like poor accounting oversight and higher turnaround time for avai

251、ling public services.Recommended ActionsPrivate sector organizations should aim at achieving end-to-end supply chain visibility,starting with the identification of key areas where blockchain can immediately enhance operational efficiency.This approach can also be used to gain a competitive edge and

252、establish higher credibility in the market,especially in sensitive areas involving government services where document/information traceability is crucial(e.g.,citizen and corporate records including land registry,certificates,and tax filings).ImplicationsThe integration of private sectors with tradi

253、tional government services like procurement for“blockchain-based e-governance”requires a thorough system overhaul.This includes upgrading legacy architectures,ensuring interoperability,and implementing robust cybersecurity measures.Recommended ActionsPrivate sector organizations shall conduct thorou

254、gh evaluations of their technological infrastructure,encompassing comprehensive impact assessments,prior to the integration of interoperable blockchain-based solutions.Such a detailed assessment is crucial for identifying potential challenges,ensuring seamless integration of various interoperable bl

255、ockchain platforms,and maximizing the benefits derived from incorporating blockchain solutions into the existing technological framework.Implications and Recommended Actions for the Private Sector45464646Incentive Mechanisms&Lead by ExampleImplicationsFacilitating blockchain development and adoption

256、 across suggested trends requires a collaborative effort from various agencies and organizations to create a supportive regulatory landscape,promote standards,encourage innovation,and reduce uncertainty for business.Recommended ActionsIGOs and IOs shall encourage collaboration in developing common s

257、tandards,to foster a strong regulatory landscape for blockchain innovation.They should also support educational initiatives,allocate resources for research,and create innovation hubs.Moreover,such collaborations can extend to promote the provision of incentives by governments,such as tax credits to

258、boost blockchain adoption across sustainability applications.This,combined with the early adoption of blockchain-powered operations by public and private sectors,provides the right degree of confidence and reassurance in the technologys reliability.Implications and Recommended Actions forInter-Gover

259、nmental Organizations(IGOs),International Organizations(IOs),and others0102TrendsDigitalRealityHyper-Personalization through Virtual ExperiencesAmplified Gaming48Digital RealityA revolution toward redefining human experience,amplifying connections,and transforming industriesThe Evolution of Extended

260、 RealityIn the current digital ecosystem,Digital Reality and Extended Reality(XR)represent same concepts and,referring to the spectrum of technologies that combine real and virtual environments to create immersive and interactive experiences,hyper-spatiotemporal and self-sustaining virtual shared sp

261、ace;and includes Virtual Reality(VR),Augmented Reality(AR),and Mixed Reality(MR).However,the scope of what encompasses Digital Reality will continue to grow,as XR continues to evolve and transform with technological advancements and innovation.The evolution of XR has been marked by advancements in h

262、ardware,software,and applications.XR applications,catalysts for significant growth and development of the digital economy,create a dynamic ecosystem where technological innovation and economic growth are intertwined.The evolution of XR is ongoing,with continuous innovations shaping the future of imm

263、ersive technologies.As technology advances,XR will become more integrated into our daily lives.The recent surge in AR/VR development,and the usage of 3D displays driven by major players like Apple,Google,Microsoft,Nvidia,and Sony,is poised to make XR an important topic in 2024.The metaverse,brought

264、into focus by Metas rebranding in 2021,is seen as the future of the internet,promising a 3D and immersive experience.The global Extended Reality market size was valued at USD92.88 Bn in 2022 and is projected to reach USD1,134.79 Bn by 2030,exhibiting a CAGR of 36.0%during the forecast period 36.fort

265、une business insightsExtended Reality Market Size(In USD Bn)Source:2024202620282030100080060040002001725881135318Extended Reality Market Size(USD Bn)%of Increase120049Digital Economy Trends Digital RealityXR is poised to find widespread applications across the public and private sectors,as well as c

266、ivil society.Theyve already become important tools in the fields of healthcare,manufacturing,and entertainment,e-learning,simulation,and visualization experiences.XR technologies have also contributed to advancements in remote collaboration,facilitating seamless teamwork for groups despite geographi

267、cal distances.The applications of XR can align with the goals of different stakeholders,including public and private sector organizations,contributing to economic development,social progress,and sustainable practices,extending to fostering inclusion,innovation and collaboration and ensuring business

268、 continuity.XR is transforming how we engage with digital content,revolutionizing the gaming industry and introducing a new era of immersive gaming experiences.XR encompasses both virtual and augmented reality,which together create a highly interactive and engaging gaming environment.Major players l

269、ike Sony and Microsoft are making substantial investments in XR technology to capture this highly growing market.Success to DateCharting the Course of Digital RealityMicrosoft has completed its USD69 Bn acquisition of the video game company Activision Blizzard,marking one of the largest consumer tec

270、h acquisitions.The acquisition will allow Microsoft to tap into the development of virtual worlds for gamers38.Use Case SpotlightIn a significant move,Sony Group has increased its research and development(R&D)spending in the gaming sector,primarily focusing on enhancing technology in live service ga

271、mes and the extended reality.The company is allocating 300 Bn Yen(approximately USD 2.13 Bn)for research and development in its game segment for the fiscal year ending in March 202439.Use Case SpotlightApple has announced the release of Apple Vision Pro in Q1,2024.The mixed reality headset has the p

272、otential to display VR/AR content and seamlessly blend digital content with the physical world while allowing users to stay present and connected with others37.50Digital Economy Trends Digital RealityFord creates virtual replicas of its products to explore multiple scenarios,aiming to enhance produc

273、t quality and refine the production process.This approach supports the designing and manufacturing of the cars and the related components,resulting in faster turnaround time,reduced process inefficiency and improved customer experience40.Use Case SpotlightShanghai is an example of a digital twin cit

274、y.The digital version of the city models more than 100,000 elements,including road traffic and the location of apartment buildings.The model is used to plan public services,simulate the effects of natural disasters,and aid response planning42.Use Case SpotlightXR supports the visualization of Digita

275、l twins to foster product and process innovation by enabling quicker time-to-market through rapid iterations and optimizations of product designs across industries.The improved process facilitates the upgrade of product quality through identification of flaws in the design much quicker.Product digit

276、al twins also reduce waste by reducing the need for physical prototypes,which helps determine real-world fit before installation.Citizens face challenges accessing public services due to complexity,bureaucracy,digital divide,and ineffective engagement.XR can enhance such services by improving citize

277、n engagement through virtual events,XR-based assistance for public infrastructure,industrial design and urban planning through digital twins,simulations for disaster management,and the virtual creation of government IDs.Specifically,the implementation of digital IDs has the potential to modernize pu

278、blic services and extending full digital ID coverage could unlock economic value equivalent to 3 to 13 percent of GDP in 203041.51Digital Economy Trends Digital RealityThe increasing use cases of digital reality present significant potential for value creation in both the public and private sectors.

279、XR is poised to revolutionize various aspects,from enhancing customer experiences to optimizing organizational operations,including product innovation,prototyping,virtual sales and remote collaboration.This transformative impact extends across various domains such as education,healthcare and enterta

280、inment,marking a shift in the way we interact with technology,businesses,and communities.XR is anticipated to create opportunities across two key focus areas “Product Design and Development and Customer Experience.”Further,these areas will emerge into the following two key trends that directly addre

281、ss some of the 2024 world agenda items:Envisioning 2024How can the development and application of XR impact the global agenda?01T r e n dHyper-Personalization through Virtual Experiences02Amplified GamingT rend52Digital Economy Trends Digital RealityHyper-Personalization through Virtual ExperiencesT

282、rend 1:Extended reality has the potential to redefine how users interact with content and services across various online channels,providing them with an omnichannel experience-customer-centric approach in which all channels are integrated and providing streamlined interactions across multiple channe

283、ls in a unified way 43.By combining immersive technologies with real-time adaptation and user behavior analysis,XR delivers hyper-personalization across domains,creating more engaging,relevant,and tailored products/experiences for individuals more specific to their needs and requirements.XR facilita

284、tes immersive visualization and fosters real-time collaboration,helping organizations retain their customers.As we look into the future,hyper-personalization,driven by digital reality and other emerging technologies is offering seamless user experience across sectors such as education,healthcare,ent

285、ertainment,fashion,and beauty.These technologies enable public and private sector organizations to create deeply contextualized user communications across touchpoints;and transforming the landscape,and offering an unprecedented level of personalization,from tailored product recommendations to virtua

286、l after-sales supports.XR is revolutionizing the education sector,offering personalized and interactive experiences.XR technology enables the development of products that provide immersive learning experiences,bridging the digital divide and democratizing access to education.Virtual education become

287、s a preferable alternative in scenarios where real-world training is expensive or hazardous.Moreover,intelligence models learn from interactions,enhancing their understanding of learners and enabling tailored learning experiences to improve knowledge-based practices.When integrated with the XR,the t

288、echnology allows students to practice and hone their skills in a hyper-personalized learning environment.The retention rate for traditional training methods is 5-10%,whereas immersive learning has been shown to improve retention rates up to 75%45.Through virtual and augmented shopping experiences bu

289、sinesses are able to present and maintain a consistent brand experience across channels.Metaverse Fashion Week is an annual event where fashion brands build virtual spaces to showcase fashion and digital architecture.It features runway shows,after-parties,immersive experiences,and shopping44.Use Cas

290、e SpotlightEngageVR serves as an education and training platform within the virtual reality domain.It enables educators and businesses to coordinate meetings,conduct presentations,offer courses,and organize events.The EngageVR platform facilitates the swift creation of training programs and virtual

291、reality experiences,allowing users to develop them in a matter of minutes46.Use Case Spotlight53Digital Economy Trends Digital RealityXR based shopping enables customers to engage with brands and products via digital experiences that allow them to try on,try out,or personalize their products virtual

292、ly 47.This transformation in consumer journeys enhances engagement,brand building,loyalty,and marketing potential.XR enables virtual product testing,reduces the need for physical store visits,and ensures more reliable product availability.XRs integration into healthcare signifies an innovative shift

293、,enhancing remote and personalized care through immersive telemedicine experiences,VR-based diagnosis and providing realistic educational environments for medical professionals.The patients healthcare journey is elevated with interactive 3D visualizations,providing personalized and custom-made recom

294、mendations for a more engaging and informative healthcare experience.Furthermore,Medical professionals benefit from realistic training environments,enhancing their skills through XR simulations.LOral uses AR and machine learning-powered technology ModiFace to make shopping for cosmetics online easie

295、r by offering customers the ability to virtually try-on before they buy48.Use Case SpotlightFundamentalVR offers a virtual reality platform tailored for surgical training.This platform goes beyond conventional simulations by incorporating haptic feedback and performance analytics,allowing medical pr

296、ofessionals to practice surgeries in a realistic,risk-free virtual environment 50.Use Case SpotlightGlobal collaboration among experts fosters knowledge exchange and patient education,benefiting from interactive 3D visualizations,while ensuring ethical and responsible use of XR in healthcare.The glo

297、bal healthcare XR market size is expected to reach USD20.1 Bn by 2028,exhibiting a CAGR of 28.64%during 2023-202849.54Digital Economy Trends Digital RealityAmplified GamingTrend 2:XR,leveraging virtual reality,is increasingly employed to enhance and transform experiential services across entertainme

298、nt industries.Virtual environments make it possible for individuals from different geographies to attend events without the need for physical travel,making them more accessible to a global audience and people with differentiated abilities.In addition,businesses can generate additional revenue throug

299、h virtual ticket sales,merchandise,and virtual advertising opportunities.E-sports is reshaping the landscape of live entertainment for the future.E-sports,a category within gaming,involves competitive video gaming where individuals and teams compete against each other for both prize money and worldw

300、ide recognition.In the E-sports ecosystem,XR enables the production of arena-size live events and service tournaments.Gamers represent just the tip of the iceberg for the e-sports ecosystem,which comprises publishers,licensing partners,event The Middle East has positioned itself as a leader in the E

301、-sports segment through various initiatives.For instance,Saudi Arabia in 2023 hosted Gamers8,one of the largest independent E-sports events,featuring 13,000 events with participants from 70+nations across the globe.Furthermore,the country is set to host an annual E-sports World Cup in Riyadh,featuri

302、ng the most popular global games with the largest prize pool in e-sports history.The Savvy Games Group in Saudi Arabia,under the ownership of the sovereign wealth fund PIF,announced a significant investment of 142 Bn Riyals(USD37.8 Bn)in 2022 to drive initiatives aimed at establishing Saudi Arabia a

303、s a worldwide gaming hub52.Use Case SpotlightThe League of Legends is an E-sports example,an XR multiplayer online battle arena video game developed and published by Riot Games.It remains one of the most played and widely recognized online games.The E-sports market is expected to have a total of 924

304、.5 Mn users by 202853.Use Case Spotlightorganizers,distributors,E-sports clubs,sponsors,and the audience.Increasing digitization,coupled with growing access to gaming devices,is expected to further boost this upward trajectory.The E-sports market worldwide is projected to reach a revenue of USD5.7 B

305、n by 2028 from its current level of USD3.8 Bn in 202351.55Digital Economy Trends Digital RealityCompared to traditional sports,e-sports are often regarded as relatively sustainable and environmentally friendly.For instance,Formula 1 estimates an annual release of 256,000 tons of CO2 emissions,while

306、analysts predict the FIFA 2022 Qatar World Cup has generated 10 Mn tons of equivalent carbon waste54.However,it is worth noting that e-sports,while presenting a greener alternative,is not without its environmental impact.According to Allianz,the ICT sector would be responsible for 830 MT of CO2 emis

307、sions by 203055.With its recent advancements,E-sports has gained attention among larger stakeholders including corporations and multilateral bodies.Brands use e-sports as a channel for e-promotions and have formulated inventive marketing approaches to establish a shared connection between their bran

308、d and the e-sports industry.In addition,multinational bodies have started to recognize and incorporate E-sports games as part of their flagship events.For example,the Olympic Council of Asia included eight medal E-sports events during its 2022 Asian games56.56Digital Economy Trends Digital RealityAp

309、proaching 2024An Overview of Key Enabling Forces for XRMillions of people interact in XR metaverses daily for activities such as gaming,collaboration,AR,travel,telemedicine,and events.However,despite this widespread interaction,there is skepticism about its adoption due to the complexity of XR devic

310、es,the disconnected nature of metaverses,and the expensive and time-consuming process of creating high-quality,3D immersive experiences.Adopting a balanced and responsible approach becomes essential as XR progresses along the maturity curve.This approach is crucial for unlocking the transformative p

311、otential of XR-Virtual Reality(VR),Augmented Reality(AR),and Mixed Reality(MR).This section will delve into the key macro enablers that are pivotal to expediting the adoption and growth of XR within next generation digital economies.1.Develop supporting infrastructure.2.Laying foundational regulatio

312、ns and governance.Develop supporting digital infrastructureInfrastructure development requires significant investment in creating high-quality virtual experiences,including connected edge cloud architecture,realistic simulations,virtual environments,and interactive content aligned with diverse user

313、needs.Infrastructure development should prioritize cross-platform compatibility,allowing XR applications to be interoperable and function seamlessly across various devices and platforms.Partnerships between XR platforms,social networks,and other digital technologies are required to facilitate cross-

314、industry and cross-tech collaboration to create an ecosystem where different metaverses can interconnect and share resources.Improvements in technical capabilities,including enhanced network speed,increased bandwidth,and advanced device capabilities,are crucial for supporting the data-intensive natu

315、re of XR applications.These enhancements aid in bolstering the infrastructure,facilitating seamless adoption of XR technologies.To facilitate ownership,transactions,and commerce in the metaverse,several elements will need to be determined and scaled.This includes Web 3.0 and Web 2.0 integrations wit

316、h legacy and modern payment modes respectively,cross-border and cross-metaverse foreign exchange solutions57.Developing infrastructure for XR encounters significant supply-side constraints,particularly in the hardware domain.Any global shortage of components such as microchips emerges as a primary c

317、hallenge,hindering the timely production and distribution of crucial XR components and impeding economies of scale.Additionally,the scarcity of skilled professionals proficient in XR poses a dual barrier,slowing innovation and obstructing the seamless integration of extended reality across diverse s

318、ectors.Addressing these challenges requires a coordinated effort between governments and industries involving thoughtful policy formulation,adaptive trade regulations,and strategic long-term planning.57Digital Economy Trends Digital RealityLaying foundational regulations and governanceRobust regulat

319、ions are needed to address data privacy,security,Intellectual Property Rights and ethical concerns associated with XR.Clear guidelines on user consent,content moderation and data collection to data archival,are essential for building trust and ensuring fair and responsible use of XR.In 2022,the Meta

320、verse Standards Forum was created to discuss technical principles and global standards for these immersive technologies.The entity seeks to create a meeting place for technology companies and regulatory organizations experienced in developing these norms.The government is expected to play a pivotal

321、role in establishing protocols and ethical standards for digital reality.This requires collaboration with industry experts,academia,and civil society to formulate XR governance frameworks that align with international standards to accelerate innovation.Entities offering VR solutions,including develo

322、pers,share the responsibility of upholding content policies and age restrictions.A well-balanced approach to VR policy encourages companies to adopt a culture of responsible XR utilization,emphasizing clear accountability.5858Key TakeawaysHarnessing Power of XR in 2024Extended Reality(XR)carries sig

323、nificant positive implications for society,institutions,and governmental bodies.Promoting digital literacy and inclusivity is crucial for society,ensuring equitable access to XR technologies.Public and private sector organizations should strategize for adaptation,exploring innovative opportunities a

324、nd prioritizing robust cybersecurity measures.Government regulators must develop agile frameworks,collaborating with stakeholders to establish necessary regulatory guidelines.Collaborative efforts between all stakeholders are essential for navigating the technology landscape safely and securely,ensu

325、ring effective and responsible outcomes.Implications and Recommended Actions for the Public SectorResponsible usageImplicationsExcessive engagement with immersive technologies such as XR exposes users to risks like privacy breaches,addiction,and various psychological and physical hazards.According t

326、o a survey from Kaspersky,42%of professional gamers worry about their mental health condition58.Hence,industry bodies and regulators shall collaborate and develop appropriate policies and regulatory guidelines to ensure safe and secure usage of XR technologies.Recommended ActionsThe public sector,in

327、cluding regulatory bodies,should develop data governance and risk management frameworks that prioritize user privacy,safety,and well-being.They should take an adaptive approach,enforcing guidelines that promote responsible consumption and prioritize privacy-by-design principles in XR development,to

328、foster a balanced and secure environment for immersive technologies to boost user trust.Implications and Recommended Actions for the Private SectorDigital InclusionImplicationsXR holds promise for digital inclusion by providing immersive educational experiences,enhancing accessibility,and fostering

329、virtual social interactions.The affordability of XR devices and the need for inclusive design must be addressed to ensure equitable access.Recommended ActionsThe private sector should prioritize the development of accessible and inclusive designs catering to diverse user groups.This can be achieved

330、through developing cost-effective solutions and supporting initiatives that promote community access,embracing cultural diversity by integrating varied content and ensuring multilingual accessibility,and establishing internal frameworks and mechanisms that prioritize inclusivity and foster continuou

331、s design improvement through iterative user feedback integration.59Adoption and demandImplicationsTo foster interest and demand for Extended Reality(XR),it is imperative to launch initiatives that focus on educating the market about XRs capabilities,potential applications,and successful use cases.Th

332、ese initiatives should aim to provide comprehensive information,highlighting the technical aspects of XR and emphasizing its practical benefits across various industries.Recommended ActionsThe private sector should focus on educating the market showcasing real-world examples of successful XR impleme

333、ntations,illustrating its transformative impact on businesses and everyday experiences.Moreover,the private sector should take appropriate measures to address any misconceptions or barriers associated with XR,like privacy,security,property rights and interoperability,ensuring that potential users and stakeholders are well-informed about its positive contributions.Proactively disseminating knowledg