Charting Uncharted Waters: Europe’s Place in a World Remade

By Jochen Werne.

Duesseldorf, 5 November 2023

Introduction

From the eloquent words of Shakespeare in Henry V, where he once proclaimed, “all things are ready if our minds be so”^1 to the monumental shifts brought by Gutenberg’s printing press^2, history reminds us that change is both an inevitable and defining characteristic of human progress. As the world stands at the threshold of a new epoch marked by rapid technological shifts and pronounced geopolitical transformations, this profound sentiment compels us to reflect on the paramount importance of preparedness and perspective. The way societies respond to these shifts determines the direction of their trajectory. In our current age, Europe finds itself at the nexus of global transformations driven by technological advancements and geopolitical tectonics.

Technology: A Historical Reflection

Peering through the lens of history, one quickly realizes that technology has been both a beacon of hope and an augury of upheaval. Take the 15th century’s monumental invention of the printing press as a case in point^2. This groundbreaking innovation democratized access to information and catalysed a substantial uptick in literacy rates across Europe. As Eisenstein posits, the “Printing Revolution” catalyzed an era where knowledge was no longer the privilege of the few but a right of the many^2. Yet, its reverberations were not confined to just reading and writing. The press became the vessel through which Martin Luther disseminated his Ninety-Five Theses, triggering a religious revolution that reshaped the European continent.

However, the journey wasn’t without turbulence. This democratization of knowledge played a pivotal role in challenging the established order, culminating in events like the Reformation, which MacCulloch describes as Europe’s great house divided^3.

Niall Ferguson, in “The Square and the Tower”, beautifully illustrates the timeless tension and interplay between networks and hierarchies^4. Historically, technologies like the printing press have emerged as disruptors, challenging established orders and reshaping hierarchies. The press, for instance, allowed for the free flow of ideas, becoming an early network that democratized information. Yet, not everything it propagated was for the betterment of society. The infamous “Malleus Maleficarum”, an ostensibly scholarly treatise, fueled the flames of the European witch hunts, leading to persecution, paranoia, and a dark chapter in history^5.

From Past to Present: The Tech Geopolitical Nexus

Fast forward to the present, and we witness a world where technology continues to shape geopolitical realities. Maddison’s macro-economic study reveals that the global center of economic gravity has been steadily shifting towards the East, particularly since the dawn of the 21st century^6. Nowhere is this shift more apparent than in the realm of technology.

The US-China tech rivalry, explored by Fuller, highlights the strategic challenges posed by China’s technological ascent^7.

The race for supremacy in AI, quantum computing, 5G, and biotechnologies marks the modern-day power play. But this isn’t merely about technological one-upmanship; it signifies a larger canvas of geopolitics, economics, and even societal values.

Many analysts are drawing parallels to the Cold War, coining the term “Tech Cold War” or “Cold War II”. Unlike the 20th-century version, primarily characterized by nuclear deterrence between the USSR and the US, this new Cold War positions the US and China in an intense rivalry for technological, economic, and military dominance. In the midst of this rivalry, both nations are hyper-aware of the stakes.

Navigating the Waters of New Geopolitical Paradigms

More than a century ago, the naval strategist Alfred Thayer Mahan, in his seminal work on sea power, postulated that maritime dominance was crucial to national greatness.

Today the Indo-Pacific has become the focal point of 21st-century geopolitics. Here, China’s assertive ‘Two Ocean Strategy’ is emblematic of its ambitions to exert influence both in the Pacific and the Indian Ocean. This expansive maritime vision is not just about sea lanes and trade; it’s a reflection of China’s aspirations to be a global power.

Simultaneously, the Taiwan question looms large in this maritime strategy. Its strategic location in the first island chain poses both an opportunity and a challenge for Beijing. Control over Taiwan would offer unencumbered access to the broader Pacific.

However, the rise of one power often brings countermeasures by others. The ‘AUKUS’ agreement between Australia, the United Kingdom, and the United States is a manifestation of this dynamic. While cloaked in the language of technological collaboration, especially in the realm of nuclear-powered submarines, the underlying intent of AUKUS is clear. It seeks to counterbalance China’s growing naval capabilities and assertiveness, particularly in the South China Sea.

Reflecting on Mahan’s sea power doctrine in this context provides a sobering perspective. Mahan believed that maritime dominance was the linchpin of global influence. Yet, he also understood the responsibilities and challenges that came with such power. In our contemporary setting, while nations pursue their maritime strategies, it is imperative they also embrace the principles of dialogue, cooperation, and conflict avoidance.

Taiwan epitomizes this interplay. As a beacon in semiconductor manufacturing, Taiwan’s geopolitical relevance can’t be overstated. Any instability could trigger economic consequences potentially dwarfing the aftermath of the Covid-19 pandemic^9.

Taiwan and Europe: Quietly Interwoven, Profoundly Connected.

In the intricate web of global technology supply chains, few names stand out as prominently as Taiwan Semiconductor Manufacturing Company (TSMC). Founded in 1987, TSMC has ascended the technological hierarchy to become the world’s leading semiconductor foundry, a testament to its unwavering commitment to innovation and excellence.

TSMC’s significance is multifaceted. For one, it’s the world’s largest dedicated independent semiconductor foundry^8. With clients ranging from major tech giants like Apple and Nvidia to burgeoning startups, TSMC’s production underpins a vast swathe of the digital products and solutions we rely on daily. However, TSMC’s role isn’t merely a commercial or technological one. It is geopolitical. With the escalating “Tech Cold War” between the U.S. and China, TSMC finds itself at an intriguing junction. The company’s strategic importance is underscored by global reliance on its cutting-edge chip manufacturing capabilities. This reliance has not only made TSMC a coveted partner but also a strategic asset in the larger scheme of global geopolitics. The U.S. push to ensure TSMC sets up manufacturing bases on its soil, and China’s keen interest in the semiconductor sector, highlights the foundry’s pivotal position.

Furthermore, TSMC embodies Taiwan’s broader significance in the tech world. As the geopolitical tussle intensifies, Taiwan – and by extension, TSMC – becomes a linchpin for global tech supply chains. A disturbance in TSMC’s operations, as speculated, could have cascading ramifications across industries, from consumer electronics to automotive and healthcare. Any significant disruption in this intricate supply chain would reverberate globally, with experts suggesting a potential 5% drop in global automotive production^9.

As chips become smaller, denser, and more powerful, the precision and capability of lithography machines must evolve in tandem.

Here’s where Europe and ASML, a Dutch gem, comes into play. The company is the sole producer of extreme ultraviolet (EUV) lithography machines^8, an advanced technology that allows for the creation of incredibly dense and efficient chips. With transistors now approaching atomic scales, EUV lithography is no less than a technological marvel, allowing chipmakers to etch circuits just a few nanometers wide.

However, the conversation around ASML isn’t merely about technological mastery. Given its unique position as the only producer of these EUV machines, ASML enjoys a quasi-monopolistic status in this niche yet profoundly impactful domain. In an era where technological supremacy is increasingly intertwined with geopolitical power, also ASML’s importance cannot be overstated. The machines they produce are not just expensive and sophisticated pieces of equipment; they are, in many ways, gatekeepers to the next generation of digital innovation.

Such a near-monopoly naturally draws attention. Nations and corporations are keenly aware of the strategic value inherent in controlling or accessing state-of-the-art chipmaking technology. With the ongoing technological cold war, where semiconductor supply chains have become part of the geopolitical chessboard, ASML finds itself in a spotlight it never sought but cannot avoid.

Europe’s Crucial Pivot

Europe’s position in this evolving tech landscape is unique. While traditionally viewing the Atlantic alliance as a cornerstone of its foreign policy, the rise of China necessitates a recalibrated approach^10. Europe’s interlinked trade with China, especially through critical chokepoints like the Malacca Strait, underscores the strategic dimension of this relationship^11.

In this whirlwind of technological and geopolitical flux, Europe is not an idle spectator. With a collective GDP nearing $22 trillion, it wields considerable influence. Europe’s role is multi-dimensional: an economic powerhouse, a voice of reason in tumultuous times, and often a mediator in global disputes.

The European Central Bank (ECB) embodies Europe’s proactive stance^12. Recognizing the flux, the ECB’s vision for 2023-2025 zeroes in on three pillars:

The ECB recognizes that the financial institutions it oversees must adapt to these transformative times. A crucial element of this adaptation is embracing digitalization, with a special emphasis on robust data-driven risk management.

  1. Strengthening Resilience: The intricate web of global economies translates to shared vulnerabilities. It’s imperative for Europe’s financial edifice to be robust, equipped to handle external shocks, and maintain systemic stability.
  2. Digitalisation & Institutional Strengthening: The burgeoning fintech sector necessitates a complete metamorphosis for legacy banks. This isn’t a mere cosmetic digital overhaul. Banks need to internalize and deploy intelligent digitalization. Central to this transformation is data analytics, supercharged by AI. Harnessing data, drawing meaningful insights, and predicting trends will determine who thrives in this new era.
  3. Climate Change Initiatives: Europe has consistently championed sustainability. The financial sector’s alignment with green, sustainable practices isn’t just altruistic; it’s also economic prudence, ensuring long-term viability and stability.

The above mentioned ECB focus is highlighted by Experian’s 2023 report on why AI-driven, regulatory-compliant analytics solutions are becoming imperative for European banks^13.

The AI Paradigm: Europe’s value-based Ethical Approach

Europe’s approach to AI regulation, championing the cause of ‘explainable AI’, shows its commitment to integrating technology with ethics. This dedication harks back to its legacy of literacy and the importance of accessibility, a theme explored by Graff^14. As Europe navigates the ‘Asian Century’^15, it does so with a clear vision: to leverage its historical experiences and chart a course that balances innovation with ethical considerations. The European AI Act encapsulates this approach. The Act’s core philosophy revolves around ensuring AI applications are safe and respect existing laws and values. This includes transparency obligations, strict criteria for ‘high risk’ AI applications, and a provision for setting up a European Artificial Intelligence Board.

One might wonder, why the emphasis on explainability? As AI systems permeate critical sectors, from healthcare to finance, their decisions can profoundly impact individuals. An ‘explainable AI’ ensures that these decisions are not just accurate but also comprehensible to the average person. This empowers individuals, fostering trust in AI systems.

The Act, however, isn’t just about explainability. It recognizes the diverse applications of AI and categorizes them based on risk. For ‘high-risk’ applications, stringent requirements, from transparency to accuracy and security, are mandated. This stratified approach ensures that while innovation isn’t stifled, critical areas receive the scrutiny they warrant.

Economic Powerhouses: A Comparative Analysis

Any discussion on global transformation would be incomplete without examining the economic engines driving these changes. China’s astounding growth, with a GDP of $17.7 trillion by 2022^16, and its decade-long average annual growth rate of 6.5%, contrasts with the US’s $25.3 trillion GDP and a more conservative 2.3% growth rate^17. The European Union, showcasing resilience and integration, clocks a collective GDP nearing $22 trillion^18, with trade figures underscoring its global economic clout^19.

Conclusion: Europe’s Way Forward

Our world is in a state of flux, reminiscent of those transformative moments in history. From the monumental shifts of the Printing Revolution^2 to the divisive yet transformative Reformation^3, Europe has witnessed and shaped global trajectories. As it stands at the crossroads of another transformation, it draws from its rich historical tapestry, aiming to strike a balance between embracing the future and preserving its core values.

The digital future beckons, but it’s not without its challenges. Whether it’s the complex web of tech geopolitics or the imperative of sustainable growth, Europe’s journey forward will need to be both adaptive and principled. At the heart of this journey lies the potent combination of data and ethics. And as Europe strides into the future, it carries with it a clear message: progress, when rooted in ethics and driven by knowledge, can usher in an era that’s not just technologically advanced but also just, balanced, and peaceful.

Footnotes:

^1 Shakespeare, William. “Henry V.” Act IV, Scene 3. ^2 Eisenstein, Elizabeth L. “The Printing Revolution in Early Modern Europe.” Cambridge University Press, 1983. ^3 MacCulloch, Diarmaid. “Reformation: Europe’s House Divided 1490-1700.” Penguin UK, 2004. ^4 Ferguson, Niall. “The Square and the Tower: Networks and Power, from the Freemasons to Facebook.” Penguin, 2018. ^5 Kramer, Heinrich and Sprenger, James. “Malleus Maleficarum.” Dover Publications, 1971. ^6 Maddison, Angus. “Contours of the World Economy 1-2030 AD: Essays in Macro-Economic History.” Oxford University Press, 2007. ^7 Fuller, Douglas B. “Cutting off our nose to spite our face: US policy toward Huawei and Taiwan in the shadow of the Chinese tech challenge.” International Security 45.3 (2021): 52-89. ^8 Chappell, Bill. “ASML: The Obscure Dutch Company That’s Enabling Big Advances In Tech.” NPR, 2019. ^9 “The Economic Impact of a Taiwan Crisis.” Nikkei Asia, 2023. ^10 Casarini, Nicola. “The Rise of China and the Future of the Atlantic Alliance.” Oxford University Press, 2020. ^11 Lanteigne, Marc. “China’s Maritime Security and the ‘Malacca Dilemma’.” Asian Security 4.2 (2008): 143-161. ^12 “European Central Bank Annual Report.” 2023. ^13 Experian PLC. “Annual Report and Financial Statements.” 2023. ^14 Graff, Harvey J. “The Legacies of Literacy: Continuities and Contradictions in Western Culture and Society.” Indiana University Press, 1987. ^15 Khanna, Parag. “The Future is Asian: Commerce, Conflict, and Culture in the 21st Century.” Simon and Schuster, 2019. ^16 “World Bank Data: China.” 2022. ^17 “World Bank Data: United States.” 2022. ^18 “World Bank Data: European Union.” 2022. ^19 “European Commission Trade Statistics.” 2022.

About the author

Jochen Werne is CEO of Experian DACH. Large-scale global data powerhouses like Experian with it’s more than 20.000 data and analytics experts and a market cap of nearly €30bn have a pivotal role to play in this evolving narrative. As a global vanguard in data analytics, Experian is uniquely poised to offer financial institutions the insights and tools essential for navigating the multifaceted challenges of our times. In a world inundated with data, discerning patterns, understanding trends, and anticipating potential pitfalls will be the linchpin of success.

Harnessing Data for Good

After my first week as CEO for Experian in the DACH region (Germany, Austria, and Switzerland), I find myself profoundly thankful for the warm welcome and the many highly inspiring encounters with some of the best data and technology professionals on our planet. Experian is not only a data insights industry titan, one that operates in 32 countries, employs over 20,000 outstanding personalities worldwide but would also rank with its more than USD 30 billion market capitalisation compared to Germany’s leading stock index as the 19th largest DAX company in Germany. Experian serves as a global leader millions of consumers and businesses, leveraging data to make a transformative difference in people’s lives.

Yet, with tremendous reach and influence comes immense responsibility.

Reflections

Just as the Age of Enlightenment in the 18th century reshaped society through the dissemination of knowledge, we find ourselves at the precipice of a new era, one marked by the power and potential of data. The 21st century, in my view, must herald a fresh Age of Enlightenment, one underpinned by data literacy.

The Age of Enlightenment, Literacy and the Dawn of Data Literacy

The Age of Enlightenment, a period dating from the late 17th to the late 18th century, marked a profound shift in the course of human history. This era, also known as the Age of Reason, encouraged critical thinking, decoupling minds from the shackles of superstition and unquestioned authority. The spotlight was placed firmly on rational thought, scientific inquiry, and individual rights – underpinnings of the modern world as we know it.

Several factors catalyzed this significant shift, not least of which was the advent and proliferation of printing technology. As philosopher Immanuel Kant noted, “Dare to know! Have the courage to use your own understanding,” a statement that encapsulates the Enlightenment’s spirit. This courage was largely fostered through increasing literacy rates.

The advent of the printing press revolutionized the dissemination of information. Books were no longer a luxury exclusive to the elite; knowledge became democratized. This sparked an increased demand for literacy. As more people learned to read, ideas were more freely exchanged, fueling a critical examination of existing societal structures.

For example, “The Encyclopédie,” a massive reference work edited by Denis Diderot and Jean le Rond d’Alembert, exemplified the spread of Enlightenment thinking. Its contributors, including leading intellectuals like Voltaire and Rousseau, aimed to collate all the world’s knowledge into a single work, accessible to the common man. This unprecedented venture into free access to knowledge set the stage for many of the democratic, scientific, and industrial revolutions that followed.

Fast forward to the present day, we see parallels in the advent of the internet, a digital revolution that democratizes information at a scale unimaginable to the Enlightenment thinkers. However, this superabundance of information has led to a paradoxical effect. As stated by Nobel Laureate Herbert A. Simon, “a wealth of information creates a poverty of attention.”

In an age characterised by short attention spans and reactionary behaviour, the challenge lies not in accessing information but in sifting through its vastness to discern truth from falsehood. A study conducted by Microsoft, 2015, found that the average human attention span has dropped to eight seconds, primarily due to the digitalised lifestyle.

Like the literacy of the Enlightenment Age, the 21st century calls for a new form of literacy: data literacy.

In a world where data is hailed as the new oil, our ability to critically interpret, analyse, and question data is of paramount importance. This skill set empowers individuals and corporations to make informed decisions, a process integral to our society.

In a report by The Data Literacy Project of which also Experian is a partner, only 21% of the global working population was confident in their data literacy skills. This gap highlights the pressing need for an educational shift towards fostering data literacy, much like the push for literacy during the Enlightenment era.

In conclusion, as we navigate the information deluge, a new Age of Enlightenment beckons, one centered around data literacy. With this new ‘Enlightenment,’ we can harness the true potential of information abundance, steering our societies towards more informed, rational, and democratic spaces. As the Enlightenment thinker Voltaire wisely said, “Judge a man by his questions rather than by his answers.” This insight seems more pertinent now than ever.

Such a renewed Age of Enlightenment also draws inspiration from one of the original Enlightenment’s most influential thinkers, Immanuel Kant. As he famously stated, “Enlightenment is man’s emergence from his self-imposed immaturity.” To transpose his wisdom to our context, data literacy and the effective application of data might be seen as emergence from a state of technological immaturity.

Furthermore, in our modern context, the Enlightenment’s emphasis on reason and logic has a fascinating analogue in the field of artificial intelligence (AI). AI, a critical tool in making sense of complex data, is designed to mimic human reasoning, albeit on a scale and at speeds we could never achieve unaided. As such, it holds a pivotal role in our future, helping us glean insights from the vast sea of data.

However, while AI’s potential is significant, it further underlines the importance of data literacy. The algorithms that power AI are only as good as the data that feeds them. Poor understanding of data and its nuances can lead to skewed AI outputs, with far-reaching implications.

Leaders in data need to focus on responsible use of AI by promoting data literacy and improving understanding of the interplay between data and AI.

New Enlightenment, then, is a journey towards a mature, informed society that harnesses the power of data and AI for good. In this era, knowledge isn’t just power; it’s the key to creating a world where data and technology act as catalysts for positive change.

In this new age, data is not merely a collection of numbers, facts, or figures; it is a powerful tool for understanding and addressing the most pressing societal issues.

However, just as literacy was not universal during the initial Enlightenment, data literacy is not yet a universal skill. As a society, we need to foster an understanding of data, how it’s collected, how it’s used, and most importantly, how it can be used ethically and responsibly.

Harnessing Data for Good – The Experian way

Experian, as a data powerhouse, has a crucial role to play in this journey. Experian has been a pioneer in harnessing data for good, from helping individuals gain access to credit, to assisting businesses flourish, to aiding governments in delivering crucial services.

For the DACH region specifically, the path to growth is intertwined with our mission to empower individuals and corporations with data and to protect from risks. In our regional market in the heart of Europe, we see significant potential to enhance consumer and corporate credit, improve business services, and support governmental programs.

Trust, innovation and reliability go hand in hand

To achieve this goal, we need to aim high and develop state-of-the-art products like AiDRIAN, which, by intelligently combining and using the latest AI technologies and data, are able to protect customers from fraud with more than 99.9% accuracy. Developing trustworthy solutions is of paramount importance. Trust comes from long-term reliability and independent audits. For AiDRIAN, for example, Fraunhofer IPA audited the heart of the solution, the Transaction Miner. The machine learning model compares several hundred customer characteristics and then assesses the risk of a transaction. Millions of data records are evaluated in a matter of seconds. Fraunhofer therefore came to the test result that the Miner’s predictive power is comprehensible even to experts and leads to better decisions.

Such results are only achievable by having an exemplary team.

The Experian DACH team, which I had the pleasure of meeting during my first week, is made up of dedicated, forward-thinking people who understand that work is not just about data, but about using data as a tool for progress and prosperity. A team that is eager to innovate, build trust, and act as responsible stewards of the data – every single day. As we delve deeper into a new era, we should aim to be instrumental in fostering a society that uses data ethically, responsibly, and for the greater good.

The Enlightenment brought knowledge to the masses, revolutionizing societies, and shaping the modern world. It is my belief, a new Age of Enlightenment will bring data literacy to all, empowering societies in ways we are just beginning to imagine.

I am excited and honoured to be a part of this transformative journey.

Jochen Werne - New Joiner CEO DACH Experian

Progress report: With AI to innovation and sustainable growth

As a member of Germany’s AI Plattform Lernende Systeme it is very inspiring to read this progress report and learn what has been achieved by Germany’s best experts in this field.

Please find the LINK TO THE REPORT HERE

Concept and aims of the Platform

Self-learning systems are increasingly becoming a driving force behind digitalisation in business and society. They are based on Artificial Intelligence technologies and methods that are currently developing at a rapid pace in terms of performance. Self-learning systems are machines, robots and software systems that learn from data and use it to autonomously complete tasks that have been described in an abstract fashion – all without specific programming for each step.

Self-learning systems are becoming increasingly commonplace supporting people in their work and everyday lives. For example, they can be used to develop autonomous traffic systems, improve medical diagnostics and assist emergency services in disaster zones. They can help improve quality of life in many different respects, but are also fundamentally changing how humans and machines interact.

Self-learning systems have immense economic potential. As digitalisation takes hold, they are already helping companies in certain sectors to create entirely new business models based on data usage and are radically changing conventional value creation chains. This is opening up opportunities for new businesses, but can also represent a threat to established market leaders should they fail to react quickly enough.

Developing and introducing self-learning systems calls for special core skills, which need to be carefully nurtured to secure Germany’s pioneering role in this field. Using self-learning systems also raises numerous social, legal, ethical and security questions – with regard to data protection and liability, but also responsibility and transparency. To tackle these issues, we need to engage in broad-based dialogues as early as possible.

Plattform Lernende Systeme brings together leading experts in self-learning systems and Artificial Intelligence from science, industry, politics and civic organisations. In specialised focus groups, they discuss the opportunities, challenges and parameters for developing self-learning systems and using them responsibly. They derive scenarios, recommendations, design options and road maps from the results.

The Platform aims to:

  • shape self-learning systems to ensure positive, fair and responsible social coexistence,
  • strengthen skills for developing and using self-learning systems,
  • act as an independent intermediary to combine different perspectives,
  • promote dialogue within society on Artificial Intelligence,
  • develop objectives and scenarios for the application of self-learning systems,
  • encourage collaboration in research and development,
  • position Germany as the leading supplier of technology for self-learning systems.

Technological Breakthroughs: A Beacon of Hope for the Future

After a challenging 2022 this year ends with HOPE due to a rally of technological innovation breakthroughs. Technological progress has the potential to help address many of the challenges facing the world today, including the energy crisis, the need for better education, and financial inclusion. Three of them shall be brought to your attention: 1. CLEAN ENERGY – Breakthrough in nuclear fusion technology; 2. EDUCATION – ChatGPT is changing the way to experience artificial intelligence; 3. PRIVACY & FINANCIAL INCLUSION – New compliant pathways for privacy and security in the blockchain-based financial ecosystem

Breakthrough in nuclear fusion technology

One area where technology is helping to address the energy crisis is through the development of nuclear fusion as a potential source of clean, abundant energy. Nuclear fusion is a process in which atomic nuclei combine to release energy, and it has the potential to provide a virtually limitless source of energy with low carbon emissions. While significant progress has been made in developing fusion technology, it is still in the early stages of development and has not yet been fully commercialized. However, the potential for nuclear fusion to help address the energy crisis makes it a promising area of research and development.

In December 2022 the National Ignition Facility (NIF) has successfully sparked a fusion reaction that released more energy than went into it. Even though there’s still a long way to go toward fusion as a clean energy source, this step can be considered as a major step forward.

READ MORE ABOUT THIS BREAKTHROUGH IN THIS FUSION TECHNOLOGY MARATHON

ChatGPT changes the way you experience artificial intelligence

ChatGPT, also known as OpenAI’s GPT-3 Chatbot API, is a natural language processing (NLP) tool developed by OpenAI. It is based on the GPT-3 model, which is a large, advanced AI language model that is capable of generating human-like text.

Overall, ChatGPT is changing the way we experience and interact with AI by making it easier to build and deploy chatbot applications that can understand and respond to user input in a natural, human-like way.

ChatGPT can be used to build chatbots and other NLP applications that can understand and respond to user input in a natural, human-like way. It is designed to be easy to use and integrate into existing systems, allowing developers to quickly build and deploy chatbot applications without the need for extensive training data.

One advantage of ChatGPT is its ability to understand and respond to a wide range of inputs and topics. It is trained on a large dataset of text and has the ability to generate coherent and contextually appropriate responses to a variety of inputs. This can make it a useful tool for building chatbots and other NLP applications that need to handle a wide range of queries and topics.

(Text has been created by ChatGPT)

CHALLENGE ChatGPT YOURSELF AND BE AMAZED. FIND OUT MORE HERE

New compliant pathways for privacy and security in the blockchain-based financial ecosystem

Innovation in blockchain privacy can bring a number of advantages to the financial ecosystem, particularly in terms of increasing the security and confidentiality of transactions. By combining this innovation with a 100% collateralized stablecoin, it is possible to create a more secure and stable digital currency that can be used for a wide range of financial transactions.

One advantage of using a 100% collateralized coin is that it is pegged to a specific asset, such as a fiat currency or commodity, which helps to stabilize its value and reduce price volatility. This can make it more attractive to users, as it reduces the risk of loss due to price fluctuations. The German Digital Cash GmbH just announced to have issued the first 100% compliant, central-bank-money-backed, Made in Germany, Euro-coin on UniSwap, called Digital Cash Euro (DCEUR). READ MORE ON THE DCEUR HERE

In terms of privacy, a blockchain-based stablecoin that incorporates innovative privacy features can help to protect the confidentiality of transactions by making it more difficult for outsiders to track and monitor them. This can be particularly useful for financial institutions and individuals.

Researchers from German crypto blockchain-based payments fintech etonec and other organizations have proposed using zero-knowledge proofs to ensure regulatory compliance and privacy in stablecoins. They have created a design that allows fiat-based stablecoins to be used like cash, within limits.

Dr. Jonas Gross, states on December 15, 2022 to CoinTelegraph: “How can privacy for digital payments be preserved, while ensuring stability and regulatory compliance? In this feasibility study co-authored by @etonec_gmbh@MinaFoundation@Privatbank1796, and @SnT_uni_lu we show how it can be done.“ FIND THE THE FULL STUDY HERE

Overall, the combination of a 100% collateralized stablecoin with innovative privacy features can bring a number of benefits to the financial ecosystem, including increased security, stability, and confidentiality.

Conclusion

Overall, technological progress has the potential to help address many of the challenges facing the world today, and it will likely continue to play a crucial role in finding solutions to these problems in the future.

December 2022 seems to be a good month in this respect. A month that shall give hope.

X-VOLUTION: Technologie und Gesellschaft – Ein Plädoyer für Aufklärung

Sascha Adam befragt im Schlußplädoyer die Teilnehmer des X-Volution Tech-Talks über ihre persönlichen Aussichten zum Thema technologischen Fortschritts und seinen Auswirkungen auf Wirtschaft, Unternehmen und unsere Gesellschaft.

Jochen Werne, Chief Visionary Officer von Prosegur German, Managing Director der Prosegur Crypto GmbH und mehrfach international ausgezeichnet für sein Engagement in International Relations antwortet mit Zuversicht und einer Reflexion für die internationale Politik.

Sascha Adam in his interview with Jochen Werne

In his closing statement, Sascha Adam asks the participants of the X-Volution Tech-Talk about their personal outlook on the topic of technological progress and its impact on the economy, companies and our society. Jochen Werne, Chief Visionary Officer of Prosegur German, Managing Director of Prosegur Crypto GmbH and winner of several international awards for his commitment to international relations, answers with confidence and a reflection for international politics.

Das gesamte Interview finden sie hier:

TIME of MISTRUST

A plea for trust in a time of mistrust. Trust is the foundation on which monetary systems are built. Trust forms the basis of international diplomatic relations and is the foundation for all progress.

But what happens once trust is shaken?

The diplomatic dispute over a multibillion-dollar submarine treaty – which took place three months before the Russian – Ukrainian war, concerns about a new cold war, and the collapse of the Bretton Woods system exactly 50 years ago are the manuscript for this maritime-themed French-American story about money and trust. It is an object lesson for our times, where we are witnessing the emergence of crypto-financial markets and thus stand on the threshold of a new form of money.

TIME OF MISTRUST

by Jochen Werne

After the traditional long summer vacation, France awakens in September from its brief self-created slumber, as it does every year. Life begins to take its usual course, even if some are still reminiscing, perhaps enjoying the first harbingers of post-Covid worry-free life. Not so Philippe Étienne. For him, on the other side of the Atlantic, in Washington, which is actually picturesque at this time of year, autumn begins with a diplomatic thunderstorm. A storm that must have been new even for the 65-year-old gray-haired eloquent ambassador of France. 6160 kilometers away, at the Élysée Palace, Président de la République Emmanuel Macron decides to call his top diplomat in the United States, along with his Australian counterpart Jean-Pierre Thebault, to Paris for consultations. The unprecedented act in Franco-American history is justified by Foreign Minister Jean-Yves Le Drian with the “exceptional gravity” of an Australian-British-American announcement, and impressively underlined with the words “lie,” “duplicity,” “disrespect” and “serious crisis.”

At the heart of this crisis is the surprise announcement by the aforementioned countries to enter into a strategic trilateral security alliance (AUKUS) with immediate effect. An alliance that also provides for the procurement of nuclear-powered submarines for Australia, effectively putting to rest a 56-billion-euro French-Australian submarine order already initiated in 2016. The conclusion of the agreement comes at a time when U.S. President Joe Biden has asserted to the UN General Assembly, “We do not seek – I repeat, we do not seek – a new cold war or a world divided into rigid blocs.” However, experts, such as renowned historian Niall Ferguson, have been talking about this so-called “new cold war” between the U.S. and China since 2019, and it is not about nuclear arms races, but rather about technology supremacy in cyber security, artificial intelligence and quantum computing. Even though nuclear-powered submarines are at the center of the diplomatic dispute, one is quick to note in the AUKUS agreement that cooperation in the aforementioned fields is one of the most important components of the treaty. An objective that is perhaps also congruent with French interests. But the dispute between the old friends is less about the “what” than about the diplomatic “how” – that is, about the breach of trust that is triggered when close allies are simply presented with a fait accompli. Facts that also affect them financially and personally.

Because money and trust are closely interwoven. The trust of a bank that the creditor will repay its debts. A citizen’s trust that the currency in which he or she is paid their salaries is stable. A state’s trust in a currency system that the agreements made there will be honored by all. Georg Simmel, in his “Philosophy of Money,” sums it up this way: “Money is perhaps the most concentrated and pointed form and expression of trust in the social-state order.”

Last year marked the 50th anniversary of another French-American trust-busting melodrama with a maritime backdrop. Benn Steil, senior fellow at the Council on Foreign Relations, describes the moving events of August 6, 1971, in his book, The Battle of Bretton Woods, as follows: “…a congressional subcommittee issued a report entitled ‘Action Now to Strengthen the U.S. Dollar` that concluded, paradoxically, that the dollar needed to be weakened. Dollar dumping accelerated and France sent a warship to pick up French gold from the vaults of the New York Fed.”

At first glance, this dramatic gesture by then French President Georges Pompidou in the final act of the collapse of the Bretton Woods system seems as strange as the withdrawal of ambassadors today. The basis, however, is similar and lay then as now in an equally shaken trust between the great nations that were nevertheless so closely intertwined. Without going deeper into the new monetary order created after World War II, with the U.S. dollar as the anchor currency, it is important to understand the reason for the French revolt evident in the “White Plan.” The plan provided that the U.S. guaranteed the Bretton Woods participating countries the right to buy and sell gold indefinitely at the fixed rate of $35 per ounce. The dilemma of this arrangement became apparent early on. For by the end of the 1950s, dollar holdings at foreign central banks already exceeded U.S. gold reserves. When French President Charles de Gaulle asked the U.S. to exchange French dollar reserves for gold in 1966, the FED’s gold reserves were only enough for about half that amount. The ever more deeply anchored loss of confidence forced the American president Richard Nixon on August 15, 1971 to cancel the nominal gold peg and the so-called “Nixon shock” ended the system as it was.

And where something ends something new can or will inevitably begin.

Today we live in a world where the stability of our currency is based on our confidence in government fiscal policy, the economic strength of our country, and the good work of an independent central bank. However, we also live in a time when new currency systems are already looming on the dense horizon. The basis for this was laid in 2008, not surprisingly, by one of the most serious crises of confidence in the international banking system that modern times have seen. And the new systems are being implemented with the help of cutting-edge distributed ledger blockchain technology. The new, with its decentralized nature, is challenging the old. While many of the new currencies in the crypto world, such as bitcoin, are subject to large fluctuations, stablecoins promise a link and fixed exchangeability to an existing value, such as the US dollar or even gold. However, the old Bretton Woods challenge of being able to keep this promise at all times remains in the new world. Millions of dollars in penalties imposed by the New York Attorney General’s Office on the largest U.S. dollar stablecoin, Tether, for not being fully verifiable do little to help trust, especially when less than 3 percent of the market capitalization is actually deposited in U.S. dollar cash. As always with new ones, trust has to be built up. This can be done privately, perhaps with a stablecoin backed 100% by central bank money, or by the state, with well thought-out central bank digital currencies, such as the digital euro planned by the European Central Bank.

We live in a world of perpetual rapid change and trust is, as Osterloh describes it, “the will to be vulnerable.” Without trust, there are no alliances, no togetherness, no progress.

Philippe Étienne was back in autumnal Washington after just a few days and has since been working again on what diplomats are best trained for – building trust.

Sources

Billon-Gallan, A., Kundnani, H. (2021): The UK must cooperate with France in the Indo-Pacific. A Chatham House expert comment. https://www.chathamhouse.org/2021/09/uk-must-cooperate-france-indo-pacific (Retrieved 24.9.2021)

Brien, J. (2021): “Stablecoin without stability”: Tether and Bitfinex pay $18.5 million fine. URL: https://t3n.de/news/stablecoin-tether-bitfinex-strafe-1358197/?utm_source=rss&utm_medium=feed&utm_campaign=news (Retrieved: 9/30/2021).

Corbet, S. (2021): France recalls ambassadors to U.S., Australia over submarine deal. URL: https://www.pressherald.com/2021/09/17/france-recalls-ambassadors-to-u-s-australia-over-submarine-deal/ (Retrieved 9/25/2021).

Ferguson N. (2019): The New Cold War? It’s With China. And It Has Already Begun. URL: https://www.nytimes.com/2019/12/02/opinion/china-cold-war.html (Retrieved: 9/30/2021).

Graetz, M., Briffault, O. (2016): A “Barbarous Relic”: The French, Gold , and the Demise of Bretton Woods. URL: https://scholarship.law.columbia.edu/cgi/viewcontent.cgi?article=3545&context=faculty_scholarship p. 17 (Retrieved 9/25/2021).

Osterloh, M., Weibel, A. (2006): Investing trust. Processes of trust development in organizations, Gabler: Wiesbaden.

Steil, B. (2020): The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the new world, p. 377.

Stolze, D. (1966): Does de Gaulle defeat the dollar? In ZEIT No. 36/1966. URL: (https://www.zeit.de/1966/36/besiegt-de-gaulle-den-dollar/komplettansicht (Retrieved: 9/26/2021)

The Guardian Editorial (2021): The Guardian view on Biden’s UN speech: cooperation not competition URL: https://www.theguardian.com/commentisfree/2021/sep/22/the-guardian-view-on-bidens-un-speech-cooperation-not-competition(Retrieved: 9/29/2021)

Unal, B., Brown, K., Lewis, P., Jie, Y. (2021): Is the AUKUS alliance meaningful or merely a provocation – A Chatham House expert comment. URL: https://www.chathamhouse.org/2021/09/aukus-alliance-meaningful-or-merely-provocation (Retrieved: 9/24/2021).

Time Online (2021): France sees relationship in NATO strained. URL: https://www.zeit.de/politik/ausland/2021-09/u-boot-deal-frankreich-australien-usa-streit-nato-jean-yves-le-drian?utm_referrer=https%3A%2F%2Fmeine.zeit.de%2F (Retrieved: 9/25/2021)

Jury Stevie Awards

Jury Chair 2022

It was an honor and a great pleasure for me to chair the jury of the German Stevie Awards 2022 together with my esteemed board colleague and COO of Prosegur Germany Hasan Celebi.

Together with all jury members for the categories “Management, HumanResources, Customer Service, Support and Covid-19-Handling” we are very pleased to judge the outstanding achievements of the applicants for this year’s award.

Follow the news at https://stevieawards.com/gsa

Preview: COLD HISTORY. HOT REALITY.

SECURITY BRIEFING. The battlefields of the past as a lesson for the protection of crypto assets today.

COLD HISTORY. HOT REALITY is a contribution to The Yearbook 2022 “Treasury and Private Banking”, edited by Roland Eller. The book is a well-known platform for building the bridge from the traditional to the new decentralised financial world.

COLD HISTORY. HOT REALITY by Jochen Werne is a plea for openness to new technologies, embedded in a historical-social security briefing on money, power and the indispensable need to protect assets. The battlefields of the past provide the framework for lessons on protecting crypto assets in our technology-dominated world and help us gain a basic understanding of the opportunities and threats in our new cyber reality.

COLD HISTORY – HOT REALITY was particularly inspired by conversations and articles from the following thought leaders, to whom I am deeply indebted.

Raimundo Castilla – CEO Prosegur Custodia Digitales, Ghislain D’Hoop – Ambassador of Belgium to Austria, Slovakia, Slovenia and Bosnia and Herzegovina, Permanent Representative to the United Nations, Roland Eller – Founder and CEO of Roland Eller Consulting, Niall Ferguson – Milbank Family Senior Fellow at the Hoover Institution at Stanford University, Christoph Impekoven – Co-Founder micobo GmbH, Benon Janos – CFO flatexDEGIRO Bank AG, Lior Lamesh – Founder & CEO of GK8, Bernd Lehmann – Historian, Commander of the German Navy (ret.), Rakesh Sharma – Author, Thomas Vartanian – Author and Counselor, Heath White – CEO Prosegur Germany, Johannes Winter – Managing Director of the Platform „Learning Systems“ – Germany‘s AI-platform

Preview and excerpt from Chapter I of “COLD HISTORY – HOT REALITY”

WHAT IS PAST IS PROLOGUE

Impressive and powerful, the words “What is past is prologue” are chiselled in white marble at the foot of the statue in front of the National Archives in Washington D.C.. The famous quote from William Shakespeare’s “The Tempest” is a haunting reminder to everyone that history provides the context for the present.

We live in a present that is changing at breathtaking speed. This fact concerns us daily, but if we do not take the time for a little history lesson, we are doomed to painfully repeat the mistakes of the past. More than aware of this realisation is the former CEO of tech giant Alphabet, Google’s parent company. He dedicated the following note to the New York Times bestseller, “The Square and the Tower: Networks and Power, from the Freemasons to Facebook”: “Niall Ferguson … brilliantly illuminates the great power struggle between networks and hierarchies that rages around the world today. As a software engineer familiar with the theory and practice of networks, I was deeply impressed by the insights of this book. Silicon Valley needed a history lesson and Ferguson delivered.” Not only is Eric Schmidt impressed, but many of the thoughts in this article are inspired by Niall Ferguson’s illuminating papers and lectures.

The beauty of the past is that everything that has already happened, successes and failures, can always be explained in detail and serve as lessons for future challenges. Successful leaders use this knowledge to develop solutions to the problems of the future and to develop communication strategies to make their visions understood by others.

This article was written at a time when humanity is in the final stages of a global pandemic that is saddling countries with an unprecedented debt burden. At the same time, a “New Cold War” is emerging and an arms race for technological supremacy has begun. With new possibilities, the old equilibrium is shaken and a new, albeit familiar, competition for power and money begins. All this at a time when crypto-blockchain-based monetary systems are rapidly becoming a new reality.

The article, with its historical analogies, aims to give the reader a better understanding of how money, power and security are closely intertwined. This helps to put quite complex issues into perspective and gives a clear view of the dangers and opportunities of our changing reality.

The world and change are not to be feared, but understood.

Jochen Werne

The new YEARBOOK will be available in Spring 2022. Find out more HERE

Hot off the press: POINT OF NO RETURN: TURNING DATA INTO VALUE

INAUGURAL EDITION
of the
JOURNAL OF AI, ROBOTICS and WORKPLACE AUTOMATION

It was indeed a great pleasure contributing in co-authorship Dr. Johannes Winter & Jochen Werne to the Henry Stewart Publications and we are pleased to present the article:

POINT OF NO RETURN:
TURNING DATA INTO VALUE

The Cambridge Dictionary defines the point of no return as the stage at which it is no longer possible to stop what you are doing, and when its effects cannot now be avoided or prevented. Exponential advances in technology have led to a global race for dominance in politically, militarily and economically strategic technologies such as 5G, artificial intelligence (AI) and digital platforms. A reversal of this status quo is hardly conceivable. Based on this assumption, this paper looks to the future, adding the lessons of recent years — the years when the point of no return was passed. In addition, the paper uses practical examples from different industries to show how digital transformation can be successfully undergone and provides six key questions that every company should ask itself in the digital age.

The article includes key learnings and/or best practise examples from e.g.
acatech – Deutsche Akademie der Technikwissenschaften
Plattform Lernende Systeme – Germany’s AI Platform
Prosegur
Tesla
Waymo
Google
Amazon
relayr
Ada Health
Fiege Logistik
Westphalia DataLab
Satya Nadella
Microsoft
TikTok
Facebook

INTERVIEW. After the lockdown: gastronomy and retail will reopen with more efficient processes

Interview with Jochen Werne, CDO/CVO Prosegur Germany, on more efficient processes after the lockdown

In his expert interview, Jochen Werne sheds light on central aspects from the perspective of gastronomy and retail for more efficient processes after the lockdown.

Read original interview by Prosegur Germany: LINK HERE. Translation by DeepL.com

Mr Werne, what are your personal observations regarding the economy and society after a year of crisis?

Of course, every crisis first of all brings suffering and a pandemic naturally brings suffering for the individual and his or her relatives when the fate of the disease triggered by the virus befalls him or her. Everything else is like a chain reaction. Starting with the state, which has the sovereign task of protecting its citizens and, in the case of a pandemic, also enforces this by shutting down social life. This, in turn, results in drastic losses of income for closed companies while costs continue. If liquidity is insufficient, this then leads to insolvencies, job losses and, in the worst case, an economic crisis. Historically, however, every crisis – and this one is no exception – has also led to the economy becoming more efficient and technological trends experiencing an acceleration.

At the moment – in this situation that is so difficult for many – I observe an incredible and inspiring creativity. It starts with small and medium-sized enterprises, which are trying to adapt agilely to what feels like a new situation every day, to improve, to optimise costs and to position themselves optimally for the time after the crisis. This gives us hope for the time after the crisis and it is a great motivation to be able to contribute with a fantastic team.

Every crisis demands a certain resilience from companies. The National Academy of Science and Engineering (acatech) presented an impulse paper entitled “Resilient Pioneers” at the German government’s digital summit in November. In it, Prosegur with its digital smart cash solution is named as a best practice example for a future-oriented and cost-optimised cash management for retail and gastronomy. How does Prosegur Smart Cash work?

Link to the acatech-paper


With Prosegur Smart Cash, restaurateurs, retailers or wholesalers can insert cash directly into the Smart Cash device for safekeeping. The special feature – in contrast to a simple safe – is that once inserted, the device automatically takes over the daily counting and accounting of the cash. The time and thus cost savings in our customers’ internal processes are sometimes considerable. The device has a communication protocol that allows the value of the collection to be transferred to the client’s bank account within 24 hours. Once the money is in the device, the responsibility and management lies with Prosegur Cash’s specialised team, which is responsible for transporting and holding the money to the bank branch. This also eliminates the sometimes daily and not harmless trip to the bank branch.

What are the advantages of Prosegur Smart Cash?

In summary, it saves our customers time and money and creates more transparency and security. Prosegur Smart Cash customers can store their cash quickly and securely, reducing unknown losses. Prosegur Smart Cash enables time savings by automating the counting process and in the daily settlement of cash. In addition, thanks to Prosegur Smart Cash, the customer does not have to go to the bank to deposit the cash, as Prosegur provides security in managing and handing over all the cash to the bank, which avoids dangerous situations for the customer and helps them save time so they can devote themselves fully to their business. In addition, a Smart Cash solution reduces the frequent and expensive phenomenon of the so-called “unknown loss”.

What is “unknown loss”?

This is the loss of inventory or other business resources due to a variety of factors, such as internal and external theft, administrative failure, fraud or cash flow errors. This situation is often a key problem for restaurateurs and retailers.

What do you observe, in terms of their customers and how they prepare for the time after the lockdown?

There is an unbelievable longing to finally be able to get in touch with their customers again, to be able to passionately offer them their own services again. Many small and medium-sized companies, not to mention the big ones, have invested massively in hygiene concepts and tried to use the time to optimise their own processes in terms of costs.

We ourselves have never had so many consultations regarding smart cash solutions as we do today. This has increased even more after clear statements and studies by the World Health Organisation (WHO) and the Bundesbank pointed out that the hygienic cleanliness of cash is at least equal to that of card payments and that the risk of infection in relation to our daily payment methods is minimal in both cases.

Interestingly enough, we have also noticed a high demand for efficiency lifting among companies with small cash volumes and have used the time to be the first company in Germany to develop a corresponding very cost-effective digital solution for this group as well. A crisis always forces everyone to become more efficient and, in my opinion, there is nothing better than doing this together. This is the only way to emerge stronger from a crisis.