10.3 Societal and Global Importance of Emerging Technologies in Information Systems

Societal and Global Impact of Emerging Technologies

The societal and global impact of emerging technologies refers to their worldwide effect of change—to economy, culture, public policy, public services, health, the environment, and quality of life. For example, emerging technologies are rapidly changing many aspects of the finance industry. When customers contact their financial institutions with general banking questions, such as location, hours, account balance, and bill payments, they can interact with AI-enabled systems to get the information they need and accomplish banking tasks. Other uses include fraud detection, anti-money-laundering, risk management, credit scoring, and trade and investment services (Figure 10.7). By automating routine tasks, organizational resources (human and financial) can be allocated elsewhere, improving efficiency. As noted during a 2023 panel discussion at the JP Morgan NBFI Leaders Forum in Sydney, Australia, generative AI could add $2.4 to $4.4 trillion annually to the global economy.⁹ It is expected to impact 75 percent of areas, such as customer operations, marketing, software engineering, and research and development, while reducing fraud and account rejection rates by 15 to 20 percent.¹⁰ We can also look at these services, enabled by AI and other emerging technologies, as contributors to the closure of over 3,000 branches of large financial institutions in 2023 due to the rise of digital banking.¹¹

Figure 10.7 The financial sector utilizes artificial intelligence to support many areas of its business. (attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license)

Another emerging technology with a societal impact is self checkout (SCO), in which machines are enabled with artificial intelligence technology, product images, barcodes, and other mechanisms for customers to complete purchases. First introduced in the 1980s, SCO technology began appearing in stores in greater numbers in the 1990s. The SCO systems market generated $3.5 billion in revenue in 2021 and is expected to grow 13 percent between 2022 and 2028 (Figure 10.8).¹²

Figure 10.8 Self-checkout systems, which rely on artificial intelligence technology, enable customers to independently complete purchases. (credit: "Self Checkout" by "pin add"/Flickr, CC BY 2.0)

The societal and global impact of emerging technology may not be apparent right away. For example, social media began in the 1990s with small platforms like Classmates.com, GeoCities.com, and SixDegrees.com, all with messaging and chat functions. Today, billions of people worldwide use social media daily for purposes including finding entertainment, interacting with others, and conducting business. Social media has expanded beyond its original designs to include e-commerce functions that allow users to buy, sell, or trade items, earn income, and find other financial incentives for use. Businesses often utilize e-commerce functions to run targeted ads, build brand awareness, generate online sales, and attract a global online following. The interaction of businesses in real time can foster a sense of community and loyalty.

Another example is the availability and adoption of solar power by consumers. First introduced in the 1980s, solar power has experienced significant growth as a result of improved solar energy technology. The conversion of energy from the sun into power for electricity and heat, or solar power, is generated through the use of solar panels. These can be found for general use on private rooftops or solar farms/fields, and large areas of land with interconnected solar panels generate large amounts of energy at the same time.

The advancements in solar power technology along with federal incentives and tax credits in the United States have increased sales of solar cells. Over five million solar systems have been installed with enough solar energy-generating systems installed to power 32.5 million homes (Figure 10.9).¹³ In other parts of the world, solar technology is being adopted in places where laws have been passed to enable access of solar energy to their citizens. The adoption and widespread use of this emerging technology have helped consumers lower electricity bills, increase property values, and reduce dependence on fossil fuels, all positive impacts on public health and the environment.

Figure 10.9 Solar farms, such as the one shown here, use solar panels to convert energy from the sun into power used to support electricity and provide heat. (credit: “Hawaii solar; a photovoltaic power station” by Reegan Moen, U.S. Department of Energy/Wikimedia Commons, Public Domain)

While there are positive societal and global impacts of emerging technology, such as job creation, improved access to education and health care, and environmental conservation efforts, there can also be negative consequences. Unintended consequences of emerging technology include increased inequality, job loss, and a harmful impact on the environment. For example, using AI may be challenging for individuals with different abilities, reducing the opportunity for them to interact with AI-enabled systems. Similarly, solar power technologies are limited to those who have the financial means to invest.

The global impact of emerging technologies is also evident across frontiers in information systems. Data analytics tools and techniques are being used and applied in all aspects of society from transportation to health care, marketing to education, finance to political campaigns. Public health organizations collect nonidentifying information on disease prevalence to spur and fund research efforts, provide targeted medicines, improve efficiencies in health care–related supply chains and logistics, resource health care, and initiate targeted marketing campaigns aimed at increasing awareness and disease prevention. The year-by-year identification of different strains of flu and its prevalence is an example of how data analytics can drive societal and global change.

We also see the societal and global impacts of data analytics in the frontier of education. A student’s personal learning experience is enhanced, educational resources are optimized, and the student’s strengths and weaknesses are identified in order to tailor instruction and set them up for success. The same transformative effects can be seen in environmental conservation efforts where deforestation, pollution, and climate change data are collected and used to enact positive change. This is evident, for example, in the World Resources Institute’s work on global forestry, where analytics is helping to identify deforestation in countries across the world, improving impacts to climate, biodiversity, and human well-being.¹⁴

The Global Community of Research and Innovation

Without research and development, we would not have smartphones, computers, the internet, or any of the technologies many of us use on a daily basis. Research and development are crucial in ensuring that technology continues to evolve and improve, and that new and innovative solutions are developed to address emerging challenges.

The global community of scientists supporting research and innovation continues to make strides toward furthering new findings, technologies, and processes. And those latest developments in the field of information systems continue to push to further the potential reach of new technologies worldwide. For example, global growth in data analytics and the predictive analytics market is expected to grow from $16.41 billion in 2023 to $83.98 billion by 2032.¹⁵

Regionally, North America is leading global efforts in data analytics and the predictive analytics market, and the largest increases in growth are in Europe, Asia-Pacific, Middle East and Africa, and South America.¹⁶ Together, countries in these regions are increasingly seeing solution and service gains in banking, financial services, insurance, health care, telecommunications, and information technology. For example, the banking industry is using these technologies to customize insurance plans and premium amounts based on user data and documentation. Large global organizations will dominate these markets as they have increased their capacity to store, process, and analyze large amounts of data to leverage the outcomes and create marketing strategies that target customers and improve user experiences.

We can also find global communities working to adopt and expand on these technologies in uses like the continued adoption and development of 5G. This fifth-generation wireless technology is an example of how mobile computing is evolving regionally and throughout the world, increasing the speed of use, enhancing connectivity, and enabling other mobile options while connected. The next generation, 6G technology is currently being developed in regions throughout the world and is expected to be available in the United States in 2030.¹⁷

How Research and Innovation Lead to Emerging Technologies

Research and innovation have played a significant role in the growth of emerging technologies. Research, or the systematic process to generate understanding or knowledge, is a precursor to innovation, the process of using the knowledge generated from research to meet real needs. When we think of research, we might imagine a scientist behind a microscope. But research can be thought of more broadly, beginning with a broad idea, leading to preliminary investigation, designing and planning, collecting and interpreting data, and then disseminating findings.

Innovation is a catalyst for change as stagnation or inactivity can impede the growth of a competitive and fiscally sound organization. The innovation process is generally composed of three systematic steps: conception, implementation, and marketing (Figure 10.10). It begins with a conceptual idea—its evaluation, the generation of requirements, and the planning needed for potential implementation. The implementation stage is where the idea is further developed or constructed, and a prototype or pilot is produced and tested. Generally, within the marketing step, the prototype or pilot application is moved to production or to launch for use. The organization may also choose specific markets to release the product.

Figure 10.10 Innovation can occur in three steps: conception, implementation, and marketing. (attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license)

Through its continuous research and innovation processes, India has become a global leader in information technology and business process outsourcing (BPO), a service industry that supports outsourcing of business service operations to third-party vendors. It is estimated that these services have garnered $157 billion in the fiscal year 2021–22, comprising $106 billion of information technology services and $51 billion of BPO services, respectively.¹⁹ This growth has also contributed to the emergence of an Indian workforce trained to solve complex problems and manage the technical functions of global corporations including consulting, design, product development, business process management, and infrastructure support.

Governments, think tanks, and private enterprises have also made major contributions to the research of new discoveries and uses for emerging technologies. The U.S. government has contributed to research and innovation through its support of federally funded agencies, such as the Department of Defense, the National Science Foundation, National Aeronautics and Space Administration (NASA), and the Environmental Protection Agency Office of Research and Development. According to the National Science Board, the proposed fiscal year 2025 budget for federal research and development is approximately $201.9 billion, with the Department of Defense (DOD) accounting for 46 percent and the Department of Health and Human Services accounting for 25 percent.²⁰

The RAND Corporation, considered one of the top think tanks in the world, is an example of an organization or institution that maintains a scholarly and interdisciplinary approach to research on particular issues, policies, or ideas. The RAND Corporation receives public and private funds to support research efforts, educational opportunities, analyses, consulting, training, and other services, with $390 million in revenue in 2023.²¹ Areas of expertise include public policy, education, environment, national security, law, and corporate governance, and also science, technology, infrastructure, defense, and economic development.

Questions in Emerging Technologies

While there is an emphasis on a multidisciplinary approach for emerging technologies in information systems that draws from such fields as computer science, telecommunications, operations research, economics, and cognitive sciences, the field is constantly evolving, and there are many questions to explore. Here are some of the central issues.

How can we ensure the ethical and responsible use of emerging technologies such as AI, blockchain, and the IoT? Ensuring the ethical and responsible use of emerging technologies should occur at individual and organizational levels as there is a great deal at stake. As complex technologies are developed, it is necessary to consider bias, fairness, transparency, privacy, and data protection as well as the human control of these technologies. Additional proactive ethical strategies to consider include the following:

• Promote open and transparent dialogue among technical teams, users, leadership, and other stakeholders about the ethical implications needed to navigate the complex landscape that technologies may bring.
• Foster collaboration and engage diverse stakeholder perspectives to create, adopt, and promote ethical standards.
• Embed ethics within the design through all stages from conception to implementation. Be sure to address questions in the integration to cover processes in place, levels of access, responsible parties or departments to respond, and ongoing monitoring processes.
• Invest in research and education of emerging technologies to aid in the development of ethical guidelines.

How can we design information systems that are resilient to cyberattacks and other security threats? As new technologies and attack vectors emerge, how can we keep systems and data safe? Organizations have recognized the need to design information systems that are resilient to cyberattacks and other security threats. Creating cyber-resilient strategies is key to safeguarding systems and data, such as the following best practices:

• Identify emerging trends in cybersecurity. Explore the specific technology and the threats that may be inherent in them. Discuss the challenges posed for each, the potential controls, validating techniques and other means to manage their vulnerabilities with leadership and other stakeholders.
• Build a resilient infrastructure. Be sure to build a comprehensive cybersecurity infrastructure that includes all the hardware, software, firewalls, encryption protocols, and regular security surveillance needed to mitigate potential risks.
• Collaborate with external partners. Explore collaborative communities to include vendors, industry peers, and governing organizations. The value of partnerships with external partners may far outweigh the cost of an attack.
• Explore the cybersecurity landscape. Research the evolving nature of threats, methods to address them, and potential impacts to the organization, such as regulatory penalties, financial losses, reputational damage, and the loss of customer trust.
• Implement training and security protocols within the organization to include user controls, privileges, and data access. Multifactor authentication and regular access reviews can also aid in strengthening security.
• Develop an incident response plan. Creating a culture of prompt incident reporting to test the effectiveness of systems is needed to identify areas of improvement.

How can we leverage emerging technologies to improve health-care delivery and patient outcomes? For example, can AI be used to diagnose diseases more accurately or predict patient outcomes more effectively? Emerging technologies are increasingly used throughout the health-care sector to improve health-care delivery and patient outcomes. According to the Health Information and Management Systems Society, a leading organization driving reformation of health-care delivery through information and technology, health-care stakeholders are optimistic about emerging health-care-related tools and technologies and their ability to improve accuracy and efficiency in care.²² Another study found that 80 percent of 80 percent of health organizations intend to expand their use of digital systems between 2022 and 2027.²³ Figure 10.11 shows some of these emerging technologies and some examples of how they are being used to support health-care delivery:

• Artificial intelligence has been leveraged in areas such as clinical decision support where presenting conditions can be narrowed down to further identify a diagnosis or causation of a presenting health challenge. It can also improve the accuracy of the diagnosis using predictive analyses and other functionality. Additionally, AI has been used to support standard operating procedures, ensuring that patient care protocols are consistently adhered to.
• Cloud computing has enabled health-care organizations to expand their capacity for data storage and scalability. Cloud computing–enabled interoperability in devices supports collaboration and data-sharing capabilities between patients and their care team.
• The management and secure transfer of patient medical records through hospitals, pharmacies, diagnostic laboratories, and other health-care entities have been attributed to the use of blockchain technologies. Its system also enables increased protection and safeguards of health-care data.
• The IoT enhances patient monitoring capabilities, medication adherence, and overall well-being. IoT-enabled devices support videoconferencing, allowing patients to confer with their medical team remotely. These devices also support the distribution of medical information where patients can use their mobile devices to track health measures or check the results of medical tests.

Figure 10.11 Emerging technologies support several segments of health-care delivery to include clinical integration and operational optimization. (credit: modification of work “Figure 2” by Abdulatif Alabdulatif, Ibrahim Khalil, and Mohammad Saidur Rahman, “Security of Blockchain and AI-Empowered Smart Healthcare: Application-Based Analysis,” Applied Sciences 12, no. 21 (October 31, 2022): 11039, https://doi.org/10.3390/app122111039, CC BY 4.0)

What are the implications of emerging technologies for the future of work? How will automation and AI impact the job market, and how can we prepare workers for this new reality? There are some who believe that emerging technologies will take away jobs. A more optimistic viewpoint explores the potential these technologies will have to not only enhance and transform the skills and competencies of the current workforce but also add new types of roles to augment existing roles. For example, traditional sales jobs (cold-calling, door-to-door) may have decreased due to the introduction and use of new technologies; however, new opportunities have been created and leveraged for companies to hit their sales targets. For example, automating sales activities can increase efficiencies such as lead qualification and generation, the use of virtual assistants to manage human tasks more efficiently, and algorithms to identify promising prospects. Data analytics can also create algorithms to identify opportunities and customer-focused prospects. Additionally, social media provides marketing options, reducing the need for cold-calling, improving the reach of services, and increasing the potential to attain sales goals. According to the Harvard Business Review, there are several capabilities companies need to have or build to realize the value of AI to exceed its costs.²⁴ They recommend that companies change behaviors to maximize learning, control experimentation to determine the value of a potential full organizational rollout, measure the value of the technology for the business, manage the data as current data stores may need to be augmented to support the potential volume of data captured, and develop personnel to engage with the technology to improve productivity and operations.

How can we ensure that emerging technologies are accessible to all, regardless of income, location, or ability? How can we bridge the digital divide and ensure that everyone has equal access to the benefits of new technologies? The adoption of responsible and inclusive approaches is necessary to ensure inclusivity and accessibility of emerging technologies. According to the World Health Organization, an estimated 1.3 billion people, or 16 percent of the global population, experience significant physical and/or mental disabilities.²⁵ Best practices for inclusive and accessible design include conducting user research, engaging diverse perspectives, prioritizing features, and creating flexible designs that are tested and iterated. We must bridge the gap between the technological world and users to increase accessibility. Some technologies have been developed with accessibility challenges in mind, such as GPT-4 offering advanced capabilities such as visual assistance to those who are visually impaired. Apple has introduced a wide range of tools to improve voice-controlled and assistive technology functions within its devices. Additionally, Google has improved its navigation features within Google Maps so users can access wheelchair accessibility, walking routes, and live experiences for those with visual impairments.

As emerging technologies continue to evolve, research and development will continue to address new issues and ensure that technology advances and meets society’s needs. An important part of this will be addressing the power demands of AI and other emerging technologies. To ensure that organizations have sufficient resources to support these power needs, research and development need to focus on sustainable energy practices. This may include efforts such as the development of processors that are more energy efficient and collaboration on open sources to share power. Efforts to manage the power consumption of emerging technologies can reduce these technologies’ environmental footprints as well as improve efficiencies and cost-effectiveness.