Smart healthcare, virtual reality, robots, etc. selected as the 7 major ICT convergence trends of 2017
Global ICT Market Grows to $3.5 Trillion, Domestic Investment in 4th Industrial Revolution Technologies Lacks

In 2017, ICT convergence services such as healthcare, media, finance, robotics, and automobiles were expected to emerge in earnest.

In a forecast of 2017 tech trends centered on ICT convergence services, Baek Jun-bong, Senior Vice President of KT Economic and Management Research Institute, stated, “IoT, cloud, and big data are cited as the core digital infrastructure of ICT convergence, and AI (artificial intelligence) is already being applied to daily life in areas such as healthcare and finance.”

ICT convergence, which is accelerating the advent of the Fourth Industrial Revolution, is driving mutually synergistic results in industries such as the Internet of Things (IoT), cloud computing, and big data. For instance, when large amounts of information collected by IoT sensors are transmitted to the cloud, big data analyzes the data stored there, which then derives insights back into the IoT.

In the field of the Internet of Things (IoT), the number of connected devices is projected to grow from 15 billion in 2015 to 31 billion in 2020, with an annual average growth rate of 15.6%, while the market size is expected to expand at an annual average rate of 32.6%. Furthermore, the global cloud market is expected to reach $141 billion in 2017, growing from $70 billion in 2015 at an annual average rate of 19.4%, and the big data market is projected to grow from $122 billion in 2015 to $187 billion in 2019.

Accordingly, Executive Director Baek selected smart healthcare, virtual reality, fintech, home IoT, drones, robots, and autonomous vehicles as the seven major trends of ICT convergence for 2017.

First, the convergence of AI and healthcare is expected to fully launch the smart healthcare market. Diagnosing cancer by analyzing only existing medical data yields an accuracy of 56%, but applying artificial intelligence and big data to utilize medical records, images, genetic analysis, and treatment simulations improves accuracy to 96%. Accordingly, as healthcare evolves toward personalized treatment in 2017, the development of customized cancer treatments through AI analysis of individual genetic information is being promoted. By utilizing AI in clinical practice, diseases can be diagnosed with higher accuracy than medical professionals, and diseases such as diabetes can be prevented through preventive health management based on DNA and wearable information.

▲ Google Daydream.

The convergence of AI and Virtual Reality (VR) is also expanding. Unlike conventional VR that offered one-way experiences, the introduction of interactive technologies such as voice, spatial, and gaze recognition is expected to lead to the full-scale launch of virtual reality games, for instance. Automaker Ford has reduced prototype production costs by 30% through virtual assembly and plans to expand its application from select models like the Mustang to all vehicles next year. Furthermore, the application of VR is expanding into medical services, such as psychotherapy involving repeated exposure to fear factors. Samsung Electronics is attempting to treat acrophobia using its VR application, 'Be Fearless'.

AI-based fintech is set to launch investment advisory services in earnest. AI-fintech will detect abnormal transaction patterns to prevent fraud, manage personalized AI assets, and conduct personal credit evaluations. Major U.S. banks are scheduled to launch robo-advisors one after another next year, and in particular, U.S. company Dataminr is expanding its AI investment advisory services, including predicting stock price fluctuations through AI analysis of 500 million tweets. Personal asset management robo-advisors enable a 75% reduction in fees, and it appears that the customer base for loans can be expanded to include borrowers with low to medium credit scores through AI credit evaluation.

▲Jibo

IoT combined with AI is blossoming into Home IoT. Existing manual monitoring and control functions are set to transform into the automatic and intelligent operation of home devices. Intelligent Home IoT devices will be able to operate autonomously based on factors such as weather, time, and events. For instance, while home devices and smartphones connected via Wi-Fi were previously controlled manually via remote, AI-based Home IoT enables devices to learn autonomously from past data patterns and control themselves intelligently. Consequently, 2017 is expected to see a clash among global AI-based Home IoT companies. Competition for voice recognition-based Home IoT services is projected to intensify among companies such as Amazon (Echo + Alexa) and Google (Google Home + OK Google). Furthermore, the role of AI voice recognition-based assistants for both inside and outside the home is also expected to expand.

What happens when drones and AI meet? While services were previously limited by manual operation, autonomous navigation that recognizes terrain and obstacles enables the provision of new services such as exploration and parcel delivery. As drone regulations are relaxed in countries around the world, including the United States, the commercial drone market is set to take off in earnest in 2017. High-definition camera analysis technology can diagnose the causes of communication failures in transmission towers by analyzing images captured by drones. In particular, detection drones can monitor the site for radiation leaks and respond immediately to accidents, thereby minimizing damage.


▲Moley Kitchen Robot

Interactive AI-based intelligent robots will also emerge next year. The evolution and utilization of human-communicating robots will expand. Robot services are increasing in various fields, such as customer service, home assistants, logistics, and crop harvesting. In 2017, the commercialization of 'Robochef,' capable of cooking over 2,000 recipes, is scheduled for the kitchen. Equipped with 20 motors, 24 joints, and 129 sensors, this robot has learned the chef's movements and entire cooking process through AI. AI robots are also being expanded into precision production tasks. The Japanese industrial robot manufacturer Fanuc performs precision production tasks by learning with 90% accuracy in just eight hours using deep learning.

Finally, the convergence of AI and automobiles is expected to accelerate the development of driverless vehicles. 2017 marks a turning point for driverless cars, and Google is accelerating the development of autonomous driving technology, including plans to commercialize self-driving cars next year. In addition, the development of autonomous driving technology by global companies such as Tesla is also expected to become more active. Tesla commercialized the Autopilot function for the first time in the world, while BMW, Companion, and others are also developing autonomous control technology. It supports driving with AI-based Alive Geometry and supports personalized driving with the AI interface 'Companion'.

Executive Director Baek, who presented the 2017 industry outlook as described above, pointed out, “The global ICT market based on the Fourth Industrial Revolution is expected to grow to the size of $3.5 trillion,” adding, “However, compared to major countries such as the U.S. and Europe, domestic investment in Fourth Industrial Revolution technologies is insufficient, and the level of preparedness ranks only 25th in the world, so it is urgent to foster the 10 major strategic businesses, including the intelligent information industry, through the government’s KICT strategy.”