What is the Fourth Industrial Revolution? | CNBC Explains

What is the Fourth Industrial Revolution? | CNBC Explains

It was in these Swiss mountains that the
world was first introduced to the phrase
the “Fourth Industrial Revolution,”
and it’s been a hot topic
among academics, politicians and business leaders
ever since. But what exactly does it mean?
The term “Fourth Industrial Revolution” was coined
by the founder of the World Economic Forum,
a former professor
named Klaus Schwab.
Schwab wrote a book with that title
to describe an era marked by a:
Let’s break that down.
Technologies like artificial intelligence,
autonomous vehicles or the Internet of Things
are becoming ingrained in our day-to-day
lives, and even our bodies.
Think of voice-activated virtual assistants,
face ID recognition or healthcare sensors.
Schwab first presented his vision
of the Fourth Industrial Revolution
at the World Economic Forum’s annual
meeting here in Davos in 2016.
But to understand the idea, we need to go much further
back in history to industrial revolution number one.
The First Industrial Revolution started
in Great Britain around 1760
and spread to Europe and North
America through the early 1800s.
It was powered by a major
invention, the steam engine.
The result?
New manufacturing processes, the creation
of factories and a booming textiles industry.
From the late 1800s, the Second Industrial
Revolution was marked by mass production
and new industries like
steel, oil and electricity.
The light bulb, the telephone and internal combustion
engine were a few of the major inventions of this era.
The Third Industrial Revolution, sometimes
known as the Digital Revolution,
occurred in the second half
of the twentieth century.
In just a few decades we saw the invention of the
semiconductor, the personal computer and the internet.
So what separates the Fourth
Industrial Revolution from the Third?
Experts say the main difference is that technology
is merging more and more with humans’ lives
and that technological change
is happening faster than ever.
Consider this: It took 75 years for 100
million users to adopt the telephone.
Instagram signed up 100 million users in just two years,
while Pokemon Go caught that amount in one month.
3D printing is just one example of fast-paced
technology in the Fourth Industrial Revolution.
The industry has gone from a business idea
to big business, with 3D printer shipments
expected to increase from just under
200,000 in 2015 to 2.4 million in 2020.
Today, you can have a hip replacement from a
3D-printed bone or use a 3D-printed bionic arm.
Talk about blurring the line between
humans and technology, right?
This new era of technology
is driving a lot of innovation.
You can see in this chart the number of patents
related to the Fourth Industrial Revolution,
for things like 3D printing or AI, has been
climbing up and up since early 2000.
Organizations are embracing new technologies
to make their businesses more efficient,
similar to how they embraced the steam engine
during the First Industrial Revolution.
But some companies, and governments, are struggling
to keep up with the fast pace of technological change.
Research shows innovators, investors and
shareholders benefit the most from innovation.
The risk is that the Fourth Industrial
Revolution is making inequality,
which is already a
big issue, even worse.
One study found billionaires
have driven almost 80 percent
of the 40 main breakthrough
innovations over the last 40 years.
That’s a problem when the richest
one percent of households
already own nearly half
of the world’s wealth.
Experts warn we are in a “winner-takes-all” economy,
where high-skilled workers are rewarded with high pay,
and the rest of
workers are left out.
Studies confirm technologies
like AI will eliminate some jobs
and create demand for new skills
that many workers don’t have.
Privacy concerns are another issue
as the Fourth Industrial Revolution
turns every company
into a tech company.
Industries from food to retail
to banking are going digital,
and they’re collecting a lot more data
from their customers along the way.
Users are starting to worry that companies
know too much about their private digital lives.
The World Economic Forum says a majority
of leaders don’t have confidence
their organizations are ready for the changes
associated with the Fourth Industrial Revolution.
With tech changing fast every
day – it’s time to catch up.
Hey everyone, Elizabeth
here in Davos, Switzerland.
Be sure to check out our other
CNBC Explains videos over here.
And leave us any other ideas in the
comments section. See you later!

100 Replies to “What is the Fourth Industrial Revolution? | CNBC Explains”

  1. India will become develep in fourth reveolution. India gdp grow fastest in world. west never show how develep India is better than west nd china . west only show poor villages. F u west.

  2. I really wonder the gap that is happening in this crazy world 🌎, some countries are struggling to get into the second industrial revolution, and the rest of developed countries are warming up before entering the 4th revolution, and the problem doesn't stop here, the lowest skilled workers are more likely to get poor because the surge of AI and Robots, they will be left behind

  3. The 4th Industrial Revolution is building on top of the computer & internet age by advancing connectivity and AI. Klaus Schwab coined this term at the 2016 World Economic Forum in Davos. This revolution will merge our physical, digital, and biological worlds together.

    1:00 The 1st Industrial Revolution began in Great Britain in 1760 and spread to rest of Europe and US. It was powered by steam.

    1:18 The 2nd Industrial Revolution began around 1870 and focused on mass production. Things like steel, oil, electricity, telephone, and gas engine were developed.

    1:31 The 3rd Industrial Revolution The computer / digital revolution was when semiconductors, PCs, and the internet were ushered in.

    1:43 What separates the 4th IR from the 3rd IR? What’s different is that the technology is merging with our lives and happening far faster than ever before. It took 75 years for 100 million people to adopt the telephone while it took Instagram 2 years, and Pokemon Go only 1 month. The 4th IR will turn every company into a tech company that collects data.

    3:02 Society is struggling to keep up with the changes. There’s a high risk that the 4th IR will make income inequality worse by becoming a “winner takes all” economy. For example, billionaires drove 80% of the 40 breakthrough innovations in the last 40 years.

  4. It's like the ideas of Jeremy Rifkin's third industrial revolution minus hope in a better future, ie a society project.

  5. فيديو رائع جداً ومفيد وملهم ومبدع ومركز في 4 دقائق فقط يشرح معنى الثورة الصناعية الرابعة القادمة والتي بدأت في عالمنا الآن والتي أصبحت على لسان جميع المُستثمرين وخبراء الإقتصاد والأكاديميين والعاملين في قطاع الصناعة والمواصفات ورجال الأعمال في كل العالم = الفيديو كان بمناسبة إنعقاد مؤتمر دافوس الإقتصادي العالمي لهذا العام 2019م في سويسرا والذي شارك فيه ممثلين لكل دول العالم ومنهم مصر وكان ممثل مصر رئيس حكومة مصر الدكتور مهندس / مصطفى مدبولي ووزيرة الإستثمار تحياتي
    Great video and very very useful , inspiring and innovative = Thanks very much for the team work of CNBC and the World Economic Forum’s annual meeting in Davos, Switzerland= we hope to see more detailed , concentrated and short videos like this
    From Cairo – Egypt – mohamed hesham khattab

  6. Or, an elite authoritarian world embracing 1984 technologies. Old technologies allow more freedoms. Robots are stupid.

  7. In China, we talked about fourth industrial revolution a decade earlier around 2000. The first industrial revolution took place in 1800-1860s, especially referring to England, when English people learned how to build steam engine. The Second was mainly about the invention of electricity as well as telecommunication, specifically like light bulb telegraph and automobile in around 1870-1900; the Third was the harness of nuclear energy after WWII, and the foruth began in 1990s US, it was about internet and digital media.

  8. So wrong they are. The ultimate conclusion of AI progress if the Church of Money maintains supremacy is the to ultimately fire the last company members left, the bosses. There is simply no objective reason for a superior to human intellect AI to keep the cancer alive and unless we come up with and implement superior to money worship socioeconomic systems , our extinction will be inevitable and 100% our own fault.

  9. I have an idea and it goes many ways. Of what we can do with it. And how great it actually works out for the everyday person.

  10. I believe the future of work is entrepreneurial. In fact, I just wrote an op-ed about this topic aligned with the World Economic Forum. CBNC… what do you guys think? https://www.roanoke.com/opinion/commentary/steidle-the-future-of-work-is-entrepreneurial/article_c4862890-ce9c-54db-b6b7-97aa461efb8e.html

  11. "What is the Fourth Industrial Revolution?"

    Pyramid society where few minority hold the wealth that would make Pharaoh jealous, and rural and non-developed society becomes mad max world. The fun starts when the drone starts to deliver products, 3d printing starts and cashless economy takes over. That's when the slaver…..err i mean "gig economy" starts to force humans to work harder than robots that can work 24/7. Yup, that will work out well. But hey, look! cool robot 3:31 😀

  12. That's great! How are the people whose occupations are being displaced by this extremely fast innovation going to afford to buy products though, if they are unable neither to find employment, nor to employ themselves?

  13. Hi, We would like to ask for permission to use this video on our community station CTV in Cape Town which is a not for profit organisation. Is it fine?

  14. Feels kind of the like the beginning of the end for most of humanity. A few powerful skilled people at the top, the rest with nothing to do and no meaning. I mean, guess it's only fair. Truly only the strongest (or smartest now) survive.

  15. Wealth Distribution…
    Pareto Principe or
    80/20 Rule or
    The Law of the Vital Few or
    Mathew Principle
    states 80 % of output come from 20 % of input….
    or 80 % of wealth in the world is owned by 20 % of population.
    With or w/o Industry 4.0, the 80/20 rule is automatically ON…:)

  16. It can also be called the fourth civilizational revolution after agriculture, industrial revolution and information revolution.

    The feature of it will be friendliness to or merging into the natural ( including body-internal ) & social environment 🌎.

    I hope new techs centered on AI, and policies to utilize them will achieve the sustainability of human civilization on the Earth 💖.

    https://ameblo.jp/lovelucifer/entry-12266020322.html / https://ameblo.jp/lovelucifer/entry-12429842470.html

  17. Been hearing alot of it from various sources, but I am sure the one that will be leading Industrial 4.0 will be China.

  18. In my view, the fourth revolution should involve replacing ideology (largely for elites) with universal human rights truth (for all). The ethical approach to human rights which I discovered would do this. Ethical human rights is firmly based on the Universal Declaration. However the global establishment refuse to discuss it e.g. my last book has been suppressed. Elites cannot let go of ideology even though the latter takes humanity on a self-destructive course (see my blog, https://outsiderethicalhumanrights.home.blog). In my view, ethical human rights will not only help maximize the potential of humanity but will also help address major problems such as the rise of totalitarian and repressive State, help address climate change and also help save the habitat of the animal kingdom.

  19. the 4th industrial revolution will merge humans with AI, not to mention destroy the entire ecosystem. Bye bye human race. #WEDONOTCONSENT #RICHIEFROMBOSTON

  20. 4.0 if not implemented with precautionary measures, it would increase the inequality gap between the developed and developing world by all means.

  21. How about the nuclears reactor aria.. where the 4 th industrial revolution won't pass 1000 years … the end

  22. 5th industry rev: cyber-reality like in the Matrix; 6th industry rev: there will be no 6th – everything is digitalized and each "person's mind" can fabricate anything it wants in a blink. Then aeon passed, there's no ascension, but only perishment.

  23. was a good vid until they brought of the political nonsense. Keep politics out of tech. Whats up with everything trying to push their agenda in every industry? Cant watch a fictional tv show without politics. Cant watch sports without politics. Cant watch cartoons with politics. Cant play a video game without politics. Now tech? Jesus!

  24. I'm not sure what to say. I love the technical advances, but I was a kid and teenager in the 60s and 70s, and I had a LOT of fun.

  25. This industrial revolution is all about mind control. It is a war between the old "the intellectul elites " and the ones left out of their exclusive group. Namely " the scientific community ". These individual's end goal is to reduce mankind to a electrical circuitry , which they will control . Experiments done in Nazi Germany on humans subjected to various different situations to see how they "reacted" are still in operation today . Remember operation paperclip when thousands of Germans entered America to continue research after the war? Do yourself a favour and see what Epstein was passionately interested in apart from young girls. See youtube
    " Amazing Polly" latest post.

  26. Facial Recognition is made illegal by San Francusco, America's most 'forward' city. The whole 'future of the 4th' is dubious.

  27. We (India) missed the bus of first three revolutions but now this is time to show the world that what we are capable of.

  28. Without economic liberty, you all can expect an implementation of the Global Venezuela Plan, and little else.

  29. I don't know what started the Third Industrial Revolution , but the Fourth World War would be fought with sticks and stones.

    – NOT Albert Einstein

  30. So, do we need to increase population to have more people working for those, who get retired or not, now I am confused…

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