We are in a time where advancements are once again having a profound impact on civilization but with one crucial difference.
Historically European society is no stranger to monumental advances in technology. Take the Agricultural and Industrial Revolutions; both brought about major technological innovations which drastically changed the way societies functioned. By vastly improving production capabilities populations thrived and living standards improved as a result.
Multiplying Brainpower
Fast forward to 2025 and we find ourselves in the midst of a different technological revolution with words like AI, Internet of Things, blockchain, the Meta Verse, Big Data, cyber security and virtual reality all becoming commonplace. We are in a time where advancements are once again having a profound impact on civilization but with one crucial difference: Where the industrial and agricultural revolutions replaced the physical limitations of manpower by providing endless energy capacity, today’s digital revolution is providing a plethora of solutions and concepts to multiply the capacity of our brainpower.
New Heights in Efficiency, Productivity and Connectivity
To describe the current digital revolution as anything other than exciting would be wrong. The possibilities are endless, from quantum computing to brain-computer interfaces (BCIs), the once unimaginable are fast becoming a reality. We are reaching new heights in automation, and new concepts and ideas are flooding our world on a daily basis. Digitalisation is helping to provide for our aging populations through telemedicine, smart homes, and social connectivity, and as the price of utilities skyrocket, it is providing solutions through smart metering, energy management systems, renewable energy integration and more. Whatever the industry or sector of society, digital transition is improving efficiency and connectivity like never before.
The Price of Digitalisation
However, with this new, exhilarating reality come new never-experienced risks that threaten to disrupt our societal systems. To ensure our critical infrastructure remains intact, we must predict what the advancements of the future will be, and work faster than these new ideas are becoming a reality to find solutions to mitigate against future risks we haven’t yet incurred. The heat is on!
The words reliance and dependency are key when considering the threats posed by this phase of digital transition. A look at today’s reality shows us how our reliance on all things digital is coming at a price. Is our dependence on digital technology akin to an addiction? Have we become so reliant on these digital “drugs” that our societies are now unable to function without them?
Risking narrow-mindedness
Social media offers the perfect example of this. The world now consists of societies glued to their phone screens, getting dopamine hits from likes, comments and shares, continually scrolling and refreshing in anticipation of new content. But again, we have to ask at what price? The transition to a social media fuelled society has created information bubbles and echo chambers, where algorithms reinforce existing beliefs and isolate users from diverse perspectives. This leads to polarisation and the spread of misinformation. In addition, deepfake technology poses threats by generating realistic but fake content, which can manipulate public opinion, damage reputations, and facilitate identity theft. Together, these factors contribute to the erosion of trust in information sources, undermining confidence in media, institutions, and personal relationships. Addressing these risks requires heightened awareness, education about the dangers from a young age, advanced detection technologies, and updated legal frameworks. To ensure we survive, we have to act now.
The Decline of European Digital Autonomy
It isn’t just social media which is threatening our societies. At a time when geopolitical tensions are high, European strategic dependencies on Superpowers like the United States and China for global technology pose significant risks. Europe has become increasingly vulnerable and the reality of trade wars or political disagreements threatening to disrupt the supply of critical technologies is no longer just hypothetical. Europe’s technological sovereignty is being undermined, limiting our ability to control our own infrastructure and innovation. Sanctions or restrictions on non-European tech companies also threaten to disrupt European industries whilst the potential for espionage and cyber-attacks on critical infrastructure and defence technologies is heightened. It is imperative that we take immediate action to protect Europe’s autonomy and secure a robust and reliable technological future.
Our Growing Dependence on Satellite Infrastructure
As the digital revolution proliferates, our reliance on satellites for communication, navigation, military operations, weather forecasting, and more has grown exponentially. The congestion in Earth’s orbit is reaching its limit and this crowded orbital environment is jeopardising the security and sustainability of satellite networks. The likelihood of nations and private entities launching yet more satellites is undeniable, so coordination and regulation are imperative to avoid international conflicts and ensure the long-term viability of space activities.
But it’s not just satellite overcrowding that is posing threats. A recent Statista report shows that as of last year, approximately two-thirds of the global population, or 5.44 billion people, are connected to the internet. As our dependency on and demand for high-speed internet and advanced communication technologies rises, the strain on satellite infrastructure intensifies. Without proper management and innovative solutions, connectivity and critical services may be compromised. Addressing these issues requires global cooperation to develop sustainable space policies and technologies, ensuring the efficient use of orbital space and safeguarding the future of satellite operations.
Decentralised Currency Networks
Digital transition exposures are also coming to the fore with the rise in popularity of Bitcoin and cryptocurrencies. Traditional financial systems rely heavily on trust in intermediaries, but cryptocurrencies aim to eliminate this need by using cryptographic proof, allowing direct transactions between parties. However, unlike with banks, for those who invest in these virtual currencies, there is no safety net. The decentralised nature of these currencies makes it difficult to recover lost funds, and the lack of regulation leaves investors vulnerable. As we embrace these digital advancements, how can we ensure that the necessary safeguards are in place to protect both individual investors and broader economic stability?
Regulatory Uncertainty
Governments worldwide are grappling with the challenges of rapid digital transition. The swift pace of technological advancements has outstripped the ability of regulatory bodies to keep up, leaving them unsure of what laws and guidelines to implement. This uncertainty creates a precarious environment where the benefits of digitalisation may be hindered by inadequate or overly restrictive regulations. Policymakers must balance fostering innovation with necessary safeguards to protect citizens, businesses, and infrastructure. Without clear regulations, the digital path remains ambiguous, risking the full benefits of digitalisation.
Forewarned is Forearmed: Futureproofing Against Digital Risks
Digital advancements are here to stay and will continue to have an impact on society offering immense benefits. As we navigate this ever-evolving digital transition, we must ask ourselves – at what cost are we embracing these advancements, what measures should we be taking to mitigate the risks associated with our digital dependency, and how will we pilot a period of regulatory uncertainty? In this issue of Horizon, we explore the latest innovations and technologies across different industries and their infinite awe-inspiring possibilities, as well as the potential harm our digital addiction is causing us and the risks and realities we face to ensure we forge forward in the digital sphere securely.
HORIZON Risk Thought >> Fast Forward
The complexity of today´s risk environment is changing at an accelerating pace, making risk management even more challenging. We have created HORIZON, firstly as a print publication and now as a page for sharing the latest insights about ongoing transformations. Our risk specialists will continue to provide their expertise and knowledge to shine a light on the challenges of the future.
Georg Winter
CEO GrECo Group
T +43 664 962 39 06
