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The Information Technology Services
(NAICS Code 541512) industry is continuing to see rapid innovation and change.
Look at nearly any information technology periodical or information technology
journal and you will see several emerging trends for 2018. Three emerging
trends for 2018 include: Artificial intelligence (AI), cloud computing, and
Internet of Things (IoT). After briefly exploring the emerging trends of AI and
Cloud Computing this research paper will focus on the IoT and the government’s
role in regulating Internet of Things technology. IoT will continue to be a hot
topic in 2018. Research suggests that the security and privacy of IoT users is
not being properly safeguarded or even planned for. Many researchers believe
that the governments around the world should play a role in safeguarding user’s
security and privacy. Moreover, critical infrastructure such as electric grids
and water supplies could become vulnerable to IoT security flaws. How should
IoT devices be regulated to ensure the safety and privacy of IoT technology. Should
governments have a role in shaping regulation of IoT technology. This research
will try and answer the question: What are the possible implications of
government regulation of IoT technology to ensure privacy and security.

 

Findings

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            Artificial
Intelligence (AI) will continue to revolutionize business in the coming
year.  Companies are investing large sums
of capital into AI. Alphabet and Baidu, combined, have invested 50 billion to
develop AI technologies. A recent Gartner survey showed that 59% of
organizations are still gathering information to build their AI strategies,
while the remainder have already made progress in piloting or adopting AI
solutions. (CITE GARTNER) In order to capitalize on artificial intelligence
businesses should exploit narrow AI technologies that enable business results.
AI is ready right now to automate increasingly complex processes, identify
trends to create business value and provide forward looking intelligence. (
CITE PWC) Governments are also investing significant resources into AI
technology with China leading the pack. Canada, Germany, Japan, the UK and the
UAE all have national AI plans.(PWC) With all of the opportunities available in
AI there are still risks. Business is going to have to be able to explain the
way AI works and why it is making the decisions it is making. There could be implications
for healthcare, financial markets among others.

            According
to a recent survey more than 90 percent of organizations are currently using at
least one cloud based IT service researchers see this trend continuing into
2018. (Hoovers) Cloud computing, simply put, is the delivery of computing
services over the internet.  Business can
take advantage of cloud computing to create new apps and services, store, back up
and recover data and host websites.  Cloud
computing has the ability to scale elastically. That is delivering the right
amount of resources when it is needed and only when it is needed.  Most cloud services fall into three
categories: Infrastructure as a service (IaaS), Platform as a service (PaaS)
and Software as a service (SaaS). IaaS allows you to rent IT infrastructure on
a pay as you go basis. These services may include virtual machines and
operating systems. PaaS supplies an on demand environment for testing,
developing and hosting applications. PaaS allows the infrastructure for these
activities to occur offsite in an environment built for development. Software
as a Service provides for delivering software applications over the internet.
Gmail is a good example of a SaaS application. SaaS provides a product that is completely
run and managed by the service provider.

            Finally,
the Internet of Things (IoT) will continue to trend in 2018. There are many
opportunities in the IoT space. But with these opportunities come increased
vulnerabilities. IoT devices are wrought with security flaws and privacy
concern issues. Researchers agree that some type of government regulation will
be needed. Governments already regulate certain parts of the internet. What are
the implications of government regulation of IoT technology that will ensure
privacy and security of IoT connected devices.

            One of the
problems is the rush to market. Developers and manufacturers are not building
IoT devices with security in mind. IoT devices are constantly collecting data
about the user and target.  IoT devices
gather information and relay this information back to connected devices where
it is stored and processed. IoT devices are constantly collecting data about
the user and target.  Examples of medical
devices that contain IoT technology are numerous. Everything from pacemakers,
defibrillators, drug infusion pumps. The attack surface multiplies as new
devices are added to the network. While there are no published reports of
attacks on these devices the connected devices remain vulnerable. A hacker
could steal vulnerable medical or financial in order to facilitate identity
theft.  Moreover, critical infrastructure
such as power grids and water supplies are vulnerable to attack. It is time for
Governments the world over to regulate these devices. According to a report
formulated by the National Security Telecommunications Advisory Committee, the
federal government and companies that operate critical infrastructure like
power grids and telecommunications systems have a window of only 3-5 years to
secure and regulate the IoT. (Pathak) Governments have a big responsibility to ensure
data security. One of the implications of government regulation is that it stifles
innovation and investment. There are ways to regulate IoT without the threat of
killing innovation. The best starting point for the government to emerge as a
regulator of IoT is in its dual role that of an IoT user and that of the IoT
infrastructure provider ( Pathak).

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