Friday, December 23, 2016

Pattern recognition machine learning



Our researchers in artificial intelligence are harnessing the explosion of digital data and computational power with advanced algorithms to enable collaborative and natural interactions between people and machines that extend the human ability to sense, learn and understand. The research infuses computers, materials and systems with the ability to reason, communicate and perform with humanlike skill and agility.

Pattern recognition is a branch of machine learning that focuses on the recognition of patterns and regularities in data, although it is in some cases considered to be nearly synonymous with machine learning. Pattern recognition systems are in many cases trained from labeled "training" data (supervised learning), but when no labeled data are available other algorithms can be used to discover previously unknown patterns (unsupervised learning).

The terms pattern recognition, machine learning, data mining and knowledge Discovery in Databases (KDD) are hard to separate, as they largely overlap in their scope. Machine learning is the common term for supervised learning methods and originates from artificial intelligence, whereas KDD and data mining have a larger focus on unsupervised methods and stronger connection to business use.

Pattern recognition has its origins in engineering, whereas machine learning grew out of computer science. However, these activities can be viewed as two facets of the same field, and together they have undergone substantial development over the past ten years. In particular, Bayesian methods have grown from a specialist niche to become mainstream, while graphical models have emerged as a general framework for describing and applying probabilistic models. Also, the practical applicability of Bayesian methods has been greatly enhanced through the development of a range of approximate inference algorithms such as variational Bayes and expectation propagation. Similarly, new models based on kernels have had significant impact on both algorithms and applications.

The problem of searching for patterns in data is a fundamental one and has a long and successful history. For instance, the extensive astronomical observations of Tycho Brahe in the 16th century allowed Johannes Kepler to discover the empirical laws of planetary motion, which in turn provided a springboard for the development of classical mechanics. Similarly, the discovery of regularities in atomic spectra played a key role in the development and verification of quantum physics in the early twentieth
century. The field of pattern recognition is concerned with the automatic discovery of regularities in data through the use of computer algorithms and with the use of these regularities to take actions such as classifying the data into different categories. Consider the simple example of recognizing handwritten digits, each digit corresponds to a 28×28 pixel image and so can be represented by a vector
x comprising 784 real numbers. The goal is to build a machine that will take such a vector x as input and that will produce the identity of the digit 0, . . . , 9 as the output. This is a nontrivial problem due to the wide variability of handwriting. It could be tackled using handcrafted rules or heuristics for distinguishing the digits based on the shapes of the strokes, but in practice such an approach leads to a proliferation of rules and of exceptions to the rules and so on, and invariably gives poor results.

Far better results can be obtained by adopting a machine learning approach in which a large set of N digits {x1, . . . , xN} called a training set is used to tune the parameters of an adaptive model. The categories of the digits in the training set are known in advance, typically by inspecting them individually and hand-labelling them. We can express the category of a digit using target vector t, which represents the identity of the corresponding digit. Suitable techniques for representing categories in terms of vectors will be discussed later. Note that there is one such target vector t for each digit image x.

-The result of running the machine learning algorithm can be expressed as a function y(x) which takes a new digit image x as input and that generates an output vector y, encoded in the same way as the target vectors. The precise form of the function y(x) is determined during the training phase, also known as the learning phase, on the basis of the training data. Once the model is trained it can then determine the identity of new digit images, which are said to comprise a test set. The ability to categorize correctly new examples that differ from those used for training is known as generalization.
In practical applications, the variability of the input vectors will be such that the training data can comprise only a tiny fraction of all
possible input vectors, and so generalization is a central goal in pattern recognition.
For most practical applications, the original input variables are typically preprocessed to transform them into some new space of variables where, it is hoped, the pattern recognition problem will be easier to solve. For instance, in the digit recognition
problem, the images of the digits are typically translated and scaled so that each digit is contained within a box of a fixed size. This greatly reduces the variability within each digit class, because the location and scale of all the digits are now the same, which makes it much easier for a subsequent pattern recognition algorithm to distinguish between the different classes. This pre-processing stage is sometimes also called feature extraction. Note that new test data must be pre-processed using the same steps as the training data.
Pre-processing might also be performed in order to speed up computation. For example, if the goal is real-time face detection in a high-resolution video stream, the computer must handle huge numbers of pixels per second, and presenting these directly to a complex pattern recognition algorithm may be computationally infeasible.
Instead, the aim is to find useful features that are fast to compute, and yet that  also preserve useful discriminatory information enabling faces to be distinguished from non-faces. These features are then used as the inputs to the pattern recognition algorithm. For instance, the average value of the image intensity over a rectangular sub-region can be evaluated extremely efficiently, and a set of such features can prove very effective in fast face detection. Because the number of such features is smaller than the number of pixels, this kind of pre-processing represents a form of dimensionality reduction. Care must be taken during pre-processing because often information is discarded, and if this information is important to the solution of the problem then the overall accuracy of the system can suffer.
Applications in which the training data comprises examples of the input vectors along with their corresponding target vectors are known as supervised learning problems.
Cases such as the digit recognition example, in which the aim is to assign each input vector to one of a finite number of discrete categories, are called classification problems. If the desired output consists of one or more continuous variables, then the task is called regression. An example of a regression problem would be the prediction of the yield in a chemical manufacturing process in which the inputs consist of the concentrations of reactants, the temperature, and the pressure.
In other pattern recognition problems, the training data consists of a set of input vectors x without any corresponding target values. The goal in such unsupervised learning problems may be to discover groups of similar examples within the data, where it is called clustering, or to determine the distribution of data within the input space, known as density estimation, or to project the data from a high-dimensional space down to two or three dimensions for the purpose of visualization.
Finally, the technique of reinforcement learning is concerned with the problem of finding suitable actions to take in a given situation in
order to maximize a reward. Here the learning algorithm is not given examples of optimal outputs, in contrast to supervised learning, but must instead discover them by a process of trial and error. Typically, there is a sequence of states and actions in which the learning algorithm is interacting with its environment. In many cases, the current action not only affects the immediate reward but also has an impact on the reward at all subsequent time steps.

Let’s discuss a live example, ANPR (Automatic number plate recognition) or LPR (License plate recognition)  It is the technical method of artificial vision (OCR) that allows the recognition of number plates in images of vehicles. Historically, it has been applied on security systems to control accesses of vehicles and car parks.

Nowadays, the ANPR technology has improved its reliability, some systems are able to offer recognition rates between 95 and 98%. Also, some ANPR equipment are able to recognize the number plate of vehicles that drive up tol 200km/h.

Generally, the ANPR technology can be bought in two modalities, The ANPR engine The ANPR equipment (Hardware + recognition engine)

The ANPR engine can recognize the number plate directly from the images stored in a hard disk. This type of software allows to take good use of images that have been obtained from other systems like CCTV or cameras.

The ANPR equipment incorporates all the hardware necessary to capture the images of the vehicles and to recognize the number plate. Moreover, it incorporates the ANPR engine. The ANPR equipment are designed to offer the maximum reliability.

The ANPR process is divided into three steps. The detection of the vehicle, the capture of the images and the process of recognition. Next, we will detail step by step how it works and depending on each case what the advantages and disadvantages are

Once the vehicle is detected, the following step is the capture of the vehicle. In order to take a right image, the following points will have to be considered. Each ANPR manufacturer has developed its own recognition algorithms, although, these are the main ones and the common ones

    To locate and to isolate the number plate in the image
    To correct the brightness and the contrast of the number plate
    To separate each character of the number plate
    To recognize each character of the number plate

The Capture Unit that takes the image of the vehicle, and the Process Unit that receive the image from the Capture Unit and makes the recognition of the number plate. The Process Units can control one or more Capture Units simultaneously.

The quality of the solution depends on each manufacturer, although generally the "CU+PU" architecture has disadvantages respect the ANPR All-in-One. Now let’s apply the modus we have discussed above & try to get a solution. Then you could search the solution on web & check the feasibility of your thoughts.

If you need any help feel free to get in touch with me at ravindrapande@gmail.com & I will be happy to help.

Friday, October 21, 2016

IoT Risks Fin Institutes

We've all have discussed on the Internet of Things by now, billions of devices connected to the internet, gathering all kinds of information on us and our daily lives. And while many of the attention-grabbing headlines will highlight the consumer-facing Internet of Things, such as in cars, domestic appliances and healthcare, the industrial sector is also already embracing connected devices.

In their Asia/Pacific Internet of Things Market Forecast, predicts that by 2020 there will be 8.6 billion connected devices in APeJ. Smart Grids will be the leading use case, followed by Manufacturing Operations, Asset/Fleet Management and Smart Buildings. According to the report, by 2020 the total market opportunity in the IoT ecosystem will be in excess of $500 billion, of which the anticipated spend on security will be $8 billion plus.

Utilities, energy providers and manufacturers are increasingly looking to connected devices to help their business streamline industrial control systems (ICS). But just as there are worries over IoT security, ICS are also facing increasing security threats, and connected devices further highlights the need for proper security measures. According to a report, Asia-Pacific Industrial Control Systems Security Market, the APAC market for ICS security is set to top $1 billion in just four years as industry players begin to understand the growing cyber threat to operational technology.

What we're addressing here is the Industrial Internet of Things, and attacks on it are already fairly common. This is a particular worry because the very foundation of IoT, and indeed IIoT - what makes it such a game changer - is also its security weak spot. By this we mean the fact that all these different components - typically manufactured by different vendors - talk to each other. And these vendors can and do require remote access to systems for a variety of reasons, such as pushing out updates or collecting data. And because many of these vendors originally come from the consumer sector, security perhaps isn't built into their devices as much as it should be. PCI have mentioned specific concerns over the IOT platform add hoc extensions. The security risks are quite major concern in Financial institutions as well.

So IIoT vendors can be targeted by cyber criminals as a way to gain access to a specific organization. It's one more route to bypass a company's defenses attacking a third party that interacts with or maintains part of the connected infrastructure of another business.
We have seen attacks like this already. This attack, for example, targeted three companies that make software for the industrial sector. Malicious code was implanted into their software update processes, which when their customers updated was transferred to their systems, giving the attackers access to vital data, systems and services.

The fact that the attackers were able to introduce malicious updates to the victims' servers strongly suggests that they had some sort of internal access to the network. It is also likely that they would have had sufficient permissions to upload the infected updates. These privileges or permissions are associated with human accounts or automated systems and if these are not properly managed, if a company loses control of critical administrative login data, for example, they can be hijacked.

Now, it is of course very difficult for a customer to have any influence over the security a vendor has put in place. But there are some things that can be done. It is vital, for example, that customers understand the dependencies within the supply chain, and where any weaknesses lie. Any links within that chain should have the same level of control that exist internally.  Also, it's possible that when working with vendors, customers can negotiate contracts or SLAs that guarantee sufficient security controls. This can be specific to interaction between the vendor and customer, such as ensuring the integrity of updates before the customer downloads them.

It's also worth considering whether there is a human element involved, and what controls are in place to ensure credentials are secure. The same process can be applied when it comes to who at the vendor has the right to access the customer environment. Credential management like this can control who has the privilege or permission to gain remote access into your infrastructure.  Ultimately, the openness of the IoT and communication among its different elements can and should be extended to include vendors and customers. That's key to ensuring your business remains secure.

Financial technology Risks has reached a tipping point, today more and more financial institutions are noticing the benefits that technology offers users, from convenient services to real-time access amid the rapid proliferation of mobile devices and cloud computing of recent years.

According to Accenture's analysis of CB Insights data, investments in APAC various ventures, primarily in China, reached almost US$10 billion as of current year July end,- more than twice the US$4 billion invested in the region in all of 2015. The top 10 investments in APAC ventures occurred in China and Hong Kong were accounting for 90% of all investments in the region.  Evidence of this growth is all around us today. For example, according to PwC's Global Economic Crime Survey 2016, the number of consumers using digital banking in Asia Pacific reached 670 million in 2014, and is expected to increase to 1.7 billion by 2020. The service has revolutionized the banking industry, leading to a growth in online and mobile banking of 35% on average annually, while the use of traditional banking decreased by more than a quarter.

Banking industry is being put at risk. Not limited to the launch of Apple Pay and the first batch of stored value facility (SVF) licenses to provide e-wallet services by the Hong Kong Monetary Authority (HKMA), they bring huge convenience to daily life, while at the same time, though the growth presents significant benefits to the industry, it also brings about significant risks. Recent incidents across Asia, and in particular in Hong Kong, have drawn attention to the security risks associated with digital banking.

HKMA recently revealed that there are at least 22 online bank accounts in at least four banks that have reported unauthorized stock trading activities, totaling a sum of HK$45.97 million. Although HKMA said that none of the cases reported resulted in any fund transfers to unregistered third parties (thanks to a double authentication process), there were nine cases that resulted in financial losses of HK$1.56 million. For the banks, the fallout extends beyond just financial liability, and could have lasting impacts on everything from consumer trust to organizational reputation.

Bring security awareness on a healthy level: According to a recent study by F5 and The Asian Banker, the majority (84%) of financial firms now rank cyber threats as one of their top business risks. CEOs are increasingly concerned about the impact of these threats on their business, but less than half (37%) of organizations actually have a cyber incident response plan or policy in place.

Threats are becoming increasingly sophisticated and creative. The five most common threats organizations face are malware, web application attacks, point of sale attacks, insider compromise and DDoS attacks. Despite this, end users are increasingly used as an alternative channel of launching attack due to the sheer number of devices, many of which are unknown - and unsecured. Awareness is growing about this and other threats, but it is a cat-and-mouse game, with criminals switching tactics and inventing new methods of attacks regularly.

Prevention is better than mitigation : Regulators are aware of this threat, and increasingly they are taking steps to mitigate the risks. The HKMA has announced the launch of a Cyber security Fortification Initiative (CFI) at the Cyber Security Summit 2016, and issued a formal circular to all banks setting out that it is a supervisory requirement for them to implement the CFI. This initiative will enhance the protection of multiple banking channels.

For banks and financial institutions strategies are needed that offer real-time threat identification, deep analysis and comprehensive protection due to the dynamic nature of their operations. They should stay vigilant and focus their effort on three items.

First, they need to prioritize real time monitoring and prevention, to guard against malware and phishing attacks which are designed to steal identity, data and money at any time. Second, they need to make sure that no endpoint software or user involvement will be required and have full transparency on the security control. Third, they also need a multi-device support, to protect transactions made on any devices or channels as every transaction can be at risk.

Cyber crime is the greatest threat that banks and financial institutions face today. Careful planning and prompt action for when, not if, organizations are threatened could mean the difference between competitive success, or financial failure.

Friday, August 19, 2016

Blockchain new paperless currency



These are my thoughts & data collected from various news like BBC, TOI & Wikipedia plus a few other websites. This is for learning purpose only still a nascent stage of the Blockchain technology so could not promise a confirm architecture yet, I will say evolving than a concrete shape acquired platform for paperless currency.  

Wikipedia states "Blockchain is a distributed database that maintains a continuously-growing list of data records secured from tampering and revision. It consists of blocks, holding batches of individual transactions.[6] Each block contains a timestamp and a link to a previous block."

Blockchain is a method of recording data - a digital ledger of transactions, agreements, contracts - anything that needs to be independently recorded and verified as having happened.  The big difference is that this ledger isn't stored in one place, it's distributed across several, hundreds or even thousands of computers around the world. This is next step from bitcoin.
And everyone in the network can have access to an up-to-date version of the ledger, so it's very transparent. Digital records are lumped together into "blocks" then bound together cryptographically and chronologically into a "chain" using complex mathematical algorithms. 

This encryption process, known as "hashing" is carried out by lots of different computers. If they all agree on the answer, each block receives a unique digital signature.
Banks think it could be the future of financial transactions, while diamond miners hope it will help end the trade in conflict diamonds. And this week the UK's chief scientific adviser encouraged the British government to adopt the technology.

The blockchain is the main technical innovation of bitcoin, where it serves as the public ledger for bitcoin transactions. Every user is allowed to connect to the network, send new transactions to it, verify transactions, and create new blocks, making it permission less. The bitcoin/blockchain design has been the inspiration for other applications. 

In the bitcoin context, a blockchain is a digital ledger that records every bitcoin transaction that has ever occurred. It is protected by cryptography so powerful that breaking it is typically dismissed as "impossible". More importantly, the blockchain resides across a network of computers. Whenever new transactions occur, the blockchain is authenticated across this distributed network, before the transaction can be included as the next block on the chain.

"You don't store details of the transaction, just the fact that it happened and the hash of the transaction," explains Adrian Nish, head of threat intelligence at BAE Systems.
Once updated, the ledger cannot be altered or tampered with, only added to, and it is updated for everyone in the network at the same time. Well, the distributed nature of a blockchain database means that it's harder for hackers to attack it - they would have to get access to every copy of the database simultaneously to be successful.

It also keeps data secure and private because the hash cannot be converted back into the original data - it's a one-way process. So if the original document or transaction were subsequently altered, it would produce a different digital signature, alerting the network to the mismatch.
In theory then, the blockchain method makes fraud and error less likely and easier to spot. The idea has been around for a couple of decades, but came to prominence in 2008 with the invention of Bitcoin, the digital currency.  Bitcoins are created by computers solving complex mathematical puzzles and this requires lots of computing power and electricity. Blockchain is the technology underpinning it.

Current Players 
Big player already started building the platform all by their thought process so this is shaping up. There isn't just one program - lots of companies, from Ethereum to Microsoft, are developing their own blockchain services. Some are open to all ("unpermissioned", in the jargon), others restrict access to a select group ("permissioned").
"Banks do very similar things to each other, even though they compete," says Simon Taylor, vice-president of blockchain research and development at Barclays.
"They basically keep our money safe and a big computer keeps track of who has what. But getting these computers to talk to each other is remarkably complex and expensive - the tech is getting a little old," he says. If banks started sharing data using a tailor-made version of blockchain it could remove the need for middlemen, a lot of manual processing, and speed up transactions, says Mr Taylor, thereby reducing costs.
 
Having access to an open, transparent ledger of bank transactions would also be useful for regulators, he adds. And it could help governments tackle tax fraud.
Tech company R3 CEV has persuaded more than 40 banks around the world, including Barclays, UBS and Wells Fargo, to join a consortium exploring distributed ledger technology.
Just this week, R3 announced that 11 global financial institutions had taken part in an experiment involving the exchange of tokens across a global private network without the need for a central third party verifying the transactions.

If banks and other financial institutions are able to speed up transactions and take costs out of the system, it should mean cheaper, more efficient services for us. For example, sending money abroad could become almost instantaneous.
Last year, investment bank Goldman Sachs and Chinese investment firm IDG Capital Partners invested $50m (£35m) in Circle Internet Financial, a start-up aiming to exploit blockchain technology to improve consumer money transfers.
Circle, co-founded by entrepreneur Jeremy Allaire, has created a digital wallet for bitcoins, but users can decide whether they send or receive money in dollars as well. The idea is to make cross-border payments as easy as sending a text or email.

It's not all about banking. Tech company Everledger is using blockchain to develop a system of warranties that enable mining companies to verify that their rough-cut diamonds are not being used by militias to fund conflicts, and that they comply with the Kimberley Process - a government and community-backed certification scheme for diamonds.
The ownership history and value of each diamond is available to anyone who wants it, and you can be confident that the information has not been tampered with or corrupted.

Current shape of technology
A blockchain implementation consists of two kinds of records: transactions and blocks. Transactions are the content to be stored in the blockchain. Transactions are created by users who wish to record information in the blockchain. In the case of cryptocurrencies, a transaction is created any time a cryptocurrency owner sends cryptocurrency to another user.

Transactions are passed from node to node on a best-effort basis. The system implementing the blockchain defines a valid transaction. In cryptocurrency applications, a valid transaction must be digitally signed, spend one or more unspent outputs of previous transactions, and ensure that the sum of transaction outputs not exceed the sum of inputs.

Blocks record one or more transactions. A transaction's presence in a block confirms when and in what sequence it occurred. Blocks are created by users known as "miners" who use specialized software or equipment designed specifically to create blocks. Miners compete with each other to see who can first complete the next block and therefore earn the reward(s) for doing so.

In a cryptocurrency system, miners collect two types of rewards: a pre-defined per-block award, and fees offered within the transactions themselves, payable to any miner who confirms the transaction.
Every node in a decentralized system has a copy of the blockchain. No centralized "official" copy exists and no user is "trusted" more than any other.Transactions are broadcast to the network using software applications. Mining nodes validate transactions, add them to the block they're creating and then broadcast the completed block to other nodes. Blockchains use various timestamping schemes, such as proof-of-work to serialize changes. 

Blockchain technology may be permissionless—"open for anyone to use"—or private: "closed off and accessible only to chosen parties". Blockchains are a technology that may be integrated into multiple areas. Examples include a payments system and store of value, facilitating crowdsales, or implementing prediction markets and generic governance tools.

The advantages

  •   The ability for independent nodes to converge on a consensus of the latest version of a large data set such as a ledger, even when the nodes are run anonymously, have poor interconnectivity and have operators who are dishonest or malicious (see Sybil attack).
  •  The ability for any well-connected node to determine, with reasonable certainty, whether a transaction does or does not exist in the data set (see consistency).
  • The ability for any node that creates a transaction to, after a confirmation period, determine with a reasonable level of certainty whether the transaction is valid, able to take place and become final (i.e., that no conflicting transactions were confirmed into the blockchain elsewhere that would invalidate the transaction, such as the same currency units "double-spent" somewhere else).
  • A prohibitively high cost to attempt to rewrite or alter transaction history.
  • Automated conflict resolution that ensures that conflicting transactions (such as two or more attempts to spend the same balance in different places) never become part of the confirmed data set.

Evolution or Teething troubles
Wait everything is not green with blockchain, An ongoing debate disputes whether a private system with verifiers tasked and authorized (permissioned) by a central authority, should still be considered a blockchain.
Proponents of permissioned or private chains argue that the term "blockchain" may be applied to any data structure which batches data into blocks which are timestamped and that these blockchains serve as a distributed version of multiversion concurrency control (MVCC) in databases. Just as MVCC prevents two transactions from concurrently modifying a single object in a database, blockchains prevent two transactions from spending the same single output in a block chain.

The opponents say that the permissioned systems look like traditional corporate databases, not supporting decentralized verification of the data, and that such systems are not hardened against tampering and revision by their operators. The Harvard Business Review defines blockchain as a distributed ledger or database open to anyone.

In the era of big data and the internet of things, being able to assign a digital signature to each bit of data is also useful. So building the traciability with a text based DB crunching helping to track every transaction & with time stamp plus IP trace so this concludes who, what & when part.
And verifying and recording each stage in the development of a software program or product will help improve quality and reliability, he maintains.

Feel free to contact me at ravindrapande@gmail.com. I would like to research for India retail markets going on Blockchain. As the market is huge , data and analytic started gathering the pace and technology platform still maturing along.

Friday, August 12, 2016

Machine Learning & IoT



The idea of an intelligent, independently learning machine has fascinated humans for decades. I remember how the concept became reality for me after I purchased my first computer.

When I demonstrated the computer for my grandfather, he began by saying, "Could you ask that machine ... ?"

He was clearly ahead of his time. Not to downplay the capability of the Assembled PC 8080, with B&W TV as monitor but at the time, it would have been premature to discuss, for example, neurorobotics as a part of everyday life in Nagpur India, where I grew up.

Businesses expect employees not only to be smart and capable, but flexible and adaptable. This expectation is no different in the way we use technology. Our devices—and our data—are becoming more flexible in their potential uses and how they’re relevant to our everyday lives.

Machine learning has experienced a boost in popularity among industrial companies thanks to the hype surrounding the Internet of Things (IoT). Many companies are already designating IoT as a strategically significant area, while others have kicked off pilot projects to map the potential of IoT in business operations. As a result, nearly every IT vendor is suddenly announcing IoT platforms and consulting services.

If you’re a business owner or enterprise beginning to leverage the Internet of Things (IoT), chances are you’ve started connecting your operational technologies – including machinery, building HVAC, and other assets – to your current software systems. As a result, you’re likely collecting a ton of new data and think see the potential transformational value in there…somewhere. One of the most difficult questions to answer when starting out with IoT is how to take vast amounts of raw information and create real business intelligence from it.

The combination of IoT and data and analytics may seem like a “chicken vs. egg” dilemma, but it doesn’t have to be. Companies who have adopted IoT with the ultimate goal of optimizing physical processes or providing predictive analytics solutions still have an opportunity to use data and analytics to advance their business, even if an implementation has stalled after the technology is in place. It’s a more common issue than you might think, as businesses new to IoT often lack the necessary expertise to move to the final step of figuring out how to work with the data they’re collecting from their Internet of Things (IoT) initiatives.

The Internet of Things (IoT) has received massive coverage and widespread adoption. What few people have stopped to consider thus far is where these connections will take us. As chatbots become more popular, we’re bearing witness to a move toward further machine learning. As the natural progression from smart objects to learning objects occurs, this new wave will encompass the globe.


Witness The IoT Ripple Effect :At the heart of IoT is a desire to connect items we already own into one cohesive network. These objects are useful for an increasing number of purposes. The variety and value of the data these devices collect is constantly growing. Though this is a solid first step, it certainly isn’t the last down this pathway. While IoT adds value to the products we already own and the services we already use, the data extracted from IoT is meant to tell marketers what we’ll want to own and what services we’ll use in the future.

Data analysis is the second phase. Analytic systems collect, analyze, organize, and feed data to the most relevant users. Though this is useful, it presents several issues. The first is the sheer amount of data collected. Processing this vast amount of data effectively to produce accurate, overarching reports is difficult. This causes a further push toward automation and cloud computing. The second issue is that IoT can’t learn from the information it generates.

Businesses expect employees not only to be smart and capable, but flexible and adaptable. This expectation is no different in the way we use technology. Our devices—and our data—are becoming more flexible in their potential uses and how they’re relevant to our everyday lives.

Watch The Rise Of The Chatbot Tide : Chatbots have received some attention recently, as several large companies have announced progress in their development. The ultimate goal is for these to replace all other platforms across devices—covering laptops, tablets, smartphones, and everything else in IoT. Rather than opening a browser, searching for “Italian food” by area, and then clicking through websites, one would simply verbally request the nearest location with the highest ratings. The chatbot would do all of the work and produce an answer. This kind of interaction and immediate response places much more power in the hands of the consumer than ever before.

Though some may read this and assume Siri has it covered, she’s a long way from the true potential of this arena. An individual’s work, personal projects, social contacts, and family calendars could all be connected and accessible through a chatbot. This could revolutionize the way people function in relation to their devices.

In my opinion, these systems will pave the way for true learning platforms. IoT will become the internet of learning objects. With this in mind, many design initiatives are transitioning from functionality to adaptability.

Anticipate The AI Wave : The billions of data points IoT produces must be organized. By paring them down to what’s important and analyzing this data, the public and private sectors benefit. This addresses everything from running a business, to military logistics, to ordering groceries. Patterns, problems, and correlations will be easier to address. Intelligent automation will make huge strides—leading to a revolution in predictive analytics—and proactive intervention will be truly possible. Enter Artificial Intelligence, or AI.

Machine learning may start with chatbots, but AI is the true potential of IoT. The processing of this data (and likely the interpretation and learning of it) will happen in the edge-computing realm. This will be fast and uninhibited. I firmly believe more companies will allocate money to AI development in the coming months and years. Once relegated to the realm of Asimov and science fiction, these innovations will be borne of IoT and cover the globe.