Harnessing AI for Operational Efficiency: Policy Pathways to Sustainable Advantage
A report by MarketsandMarkets in 2024 showed that the global AI market size is estimated to grow from USD 214.6 billion in 2024 to USD 1,339.1 billion in 2030, at a CAGR of 35.7%. AI has become an enabler of productivity and innovation. A Forbes Advisor survey conducted in 2023 reported that 56% of businesses use AI to optimise their operations and drive efficiency. Further, 51% use AI for cybersecurity and fraud management, 47% employ AI-powered digital assistants to enhance productivity and 46% use AI to manage customer relationships.
AI has revolutionised business functions. According to a Forbes survey, 40% of businesses rely on AI for inventory management, 35% harness AI for content production and optimisation and 33% deploy AI-driven product recommendation systems for enhanced customer engagement. This blog addresses the opportunities and challenges posed by integrating AI into operational efficiency.
Artificial Intelligence and its resultant Operational Efficiency
AI has exemplary optimisation or efficiency capabilities and is widely used to do repetitive tasks. These tasks include payroll processing, data entry, inventory management, patient registration, invoicing, claims processing, and others. AI use has been incorporated into such tasks as it can uncover complex patterns using NLP, machine learning, and deep learning beyond human capabilities. It has also shown promise in improving the decision-making process for businesses in time-critical, high-pressure situations.
AI-driven efficiency is visible in industries such as the manufacturing industry for predictive maintenance, in the healthcare industry for streamlining diagnostics and in logistics for route optimisation. Some of the most common real-world examples of AI increasing operational efficiency are self-driving cars (Tesla), facial recognition (Apple Face ID), language translation (Google Translate), and medical diagnosis (IBM Watson Health)
Harnessing AI has advantages as it helps optimise the supply chain, extend product life cycles, and ultimately conserve resources and cut operational costs.
Policy Implications for AI Deployment
Some of the policy implications for development for AI deployment are as follows:
- Develop clear and adaptable regulatory frameworks for the ongoing and future developments in AI. The frameworks need to ensure that innovation is not hindered while managing the potential risks.
- As AI systems rely on high-quality data that is accessible and interoperable to function effectively and without proper data governance, these systems may produce results that are biased, inaccurate and unreliable. Therefore, it is necessary to ensure data privacy as it is essential to maintain trust and prevent harm to individuals and organisations.
- Policy developers need to focus on creating policies that upskill the workforce which complements AI development and therefore job displacement.
- To ensure cross-border applicability and efficiency of standardising AI policies, the policy-makers need to ensure that international cooperation is achieved when developing the policies.
Addressing Challenges and Risks
Some of the main challenges that emerge with the development of AI are algorithmic bias, cybersecurity threats and the dependence on exclusive AI solutions or where the company retains exclusive control over the source codes. Some policy approaches that can be taken to mitigate these challenges are:
- Having a robust accountability mechanism.
- Establishing identity and access management policies that have technical controls like authentication and authorisation mechanisms.
- Ensure that the learning data that AI systems use follows ethical considerations such as data privacy, fairness in decision-making, transparency, and the interpretability of AI models.
Conclusion
AI can contribute and provide opportunities to drive operational efficiency in businesses. It can be an optimiser for productivity and costs and foster innovation for different industries. But this power of AI comes with its own considerations and therefore, it must be balanced with proactive policies that address the challenges that emerge such as the need for data governance, algorithmic bias and risks associated with cybersecurity. A solution to overcome these challenges is establishing an adaptable regulatory framework, fostering workforce upskilling and promoting international collaborations. As businesses integrate AI into core functions, it becomes necessary to leverage its potential while safeguarding fairness, transparency, and trust. AI is not just an efficiency tool, it has become a stimulant for organisations operating in a rapidly evolving digital world.
References
- https://indianexpress.com/article/technology/artificial-intelligence/ai-indian-businesses-long-term-gain-operational-efficiency-9717072/
- https://www.marketsandmarkets.com/Market-Reports/artificial-intelligence-market-74851580.html
- https://www.forbes.com/councils/forbestechcouncil/2024/08/06/smart-automation-ais-impact-on-operational-efficiency/
- https://www.processexcellencenetwork.com/ai/articles/ai-operational-excellence
- https://www.leewayhertz.com/ai-for-operational-efficiency/
- https://www.forbes.com/councils/forbestechcouncil/2024/11/04/bringing-ai-to-the-enterprise-challenges-and-considerations/
Related Blogs
Introduction
As the world is being "Digitally Interlaced", cyber security has become a continuous wrangle. The “Gambling industry” is considered an incredibly lucrative mark for cybercriminals, principally due to the enormous quantities of cash on hand and the sensitive details it processes day to day. Cybercriminals may use susceptibilities in gambling scaffolds to achieve financial scams or launder unlawful funds. An analysis by Security Scorecard discovered that the online gambling industry was ranked third in the possibility of encountering a cyber attack, following the energy and financial services sectors. Similarly, Online gambling is a bending matter that demands meticulous contemplation by policymakers and nationals. The incredible rise of online gambling has led to a terse acclivity in unlawful activities such as online scams, fraud, etc. Also, online sports gambling has become a thriving endeavour in contemporary years as millions of people are putting stakes and gambles on their electronic devices.
The Challenges
Online gambling has thus become a widespread frolicking for numerous youngsters, with the industry tossed to be worth billions of dollars in the forthcoming decades. The prominent cyber security challenges in the gambling industry are money laundering, financial laundering, ransomware, personal information theft, data breaches, distributed Denial of Service (DDoS), system disruptions and Insider perils and employee malfeasance. Challenges of online gambling also include being properly not regulated and a lack of social interaction with near and dear ones. The spread of Internet gambling has presented many problems affecting consumer behaviour online, motivations to gamble, problem gambling, security of websites, and the righteousness and virtue of the games. The rise of online gambling among young people due to the lack of clear regulations has likewise produced an abundant backdrop for financial ruination.
Web games and betting are among the fastest-evolving areas of the Internet. Over the past several years, there has been an international flare-up in online gambling, permitting customers to play from the convenience of home, work, and public locations. Numerous offshore betting websites and apps usually permit parties to win in the start with sound returns, whereas after the user gets addicted and invests considerable sums, they either keep failing or have the website refuse to cash out the winnings. Also, the information demonstrates that online games have been employed to commit wrongdoings (Child sexual exploitive material, religious conversion, cyberbullying, fraud, betting in virtual online casinos, etc.)
India's laws and regulations surrounding online gambling are complex and constantly evolving. While the legal framework is not entirely clear, a few state in India have their own set of rules.
Recently In April 2023, the Union Ministry of Electronics and Information Technology (“MeitY”), by virtue of the rule-making powers available to the central government under the Information Technology Act, 2000 (“IT Act 2000”), implemented a new central legal framework for online gaming through amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (“IT Rules 2021”). These amendments (“Online Gaming Rules”) propose a light-touch, co-regulatory regime whereby MeitY-recognised, independent self-regulatory bodies (“SRB”) will verify whether an “online real-money game” is to be made available to the general public or not – in accordance with the baseline criteria prescribed by the Online Gaming Rules.
The Online Gaming Rules attempt to regulate online gaming platforms by treating them as an “online gaming intermediary” (“OGI”) and prescribing intermediary due diligence obligations for them under the IT Rules 2021. An OGI has been defined in the Online Gaming Rules as “any intermediary that enables the users of its computer resource to access one or more online games”. Under the Online Gaming Rules, an online game can be a “permissible online game” if (i) it is not an online real-money game, or (ii) it is an online real-money game but is “verified” by an SRB in accordance with the baseline criteria prescribed by the Online Gaming Rules and any additional criteria prescribed by the SRB itself.
Global Perspective
The global gaming industry worth over US$227 billion in 2022 is further projected to grow to US$312 billion by 2027. Several countries have set regulatory frameworks about online gaming, though these are skewed, concentrating mainly on gambling and circumventing numerous of the more typical cyber threats. The US spends about $60 billion annually on online gambling and sports betting. In Europe, gambling is an even larger moneymaker. Also, numerous countries in Europe, like the UK, have legalised gambling. Nevertheless, it is prohibited for a US based company to operate an online gambling site. Yet, sports betting online is permitted in some states.
Today, though the gaming market has been overpowered by China and the US, future growth in the sector is anticipated to come from emerging economies like India with increasing populations. The permitted status of online gambling in India is nonetheless imprecise, vamoosing space for exploitation by cyber criminals and disarray for players involved. One of the climactic points that ought to be addressed is the sudden upsurge of online games, which increases gambling. Skill-based games such as poker, rummy etc., have additionally been developed to circumvent the legal definition of gambling in India. The recent instances of the online gaming industry not being properly regulated have also come to light in India. For instance, the Enforcement Directorate (ED) is still investigating the vast Mahadev Online Betting scandal, exposing an unknown money laundering method using Unified Payment Interface (UPI) IDs. Also, the Cyber Cell in Agra has taken proactive action against copyright violations, illegal online gambling and betting activities, shutting down 27 Illegal cricket betting sites in major operations, safeguarding several lakhs of Indians with thousands of crores from being transferred to overseas shores principally China.
Consequently, though India has announced new regulations on online gaming, its contemporary policy framework cannot contend with the problems endangering this sector. The Public Gambling Act of 1867 makes it unlawful to use a public gambling house or to be seen in one. Nevertheless, the act does not explicitly cite online gambling, leading to further interpretation. The Ministry of Home Affairs (MHA) has released a further awareness campaign for offshore illegal gambling apps, notifying users to be mindful of foreign apps as they may be fraudulent and might induce monetary damage to the user. Also, state laws control gambling in India with each state having its own directive on the subject. Yet, the Supreme Court of India has maintained that skilled games are not gambling and are thus legal. Furthermore, the Information Technology (IT) Act, of 2000 does not precisely handle online gambling or games that enable gambling.
Today, developers have strived for new ways to monetise the growing popularity of online gaming, which oversaw the creation of in-game currencies that can be bought using actual money, usually through credit cards. Several nations have prohibited the usage of in-game currency and loot boxes, considering them a kind of online gambling. The in-game currency has thus caused much disagreement about becoming a state of hunting monetisation by developers, especially targeting minor or newbie players. The gambling industry, therefore, faces unique cybersecurity challenges that require a comprehensive and proactive approach to cybersecurity.
Conclusion
Presently, there are approximately 3.09 billion active video game players worldwide, and the number is expected to reach 3.32 billion by 2024 as of 2023. In the contemporary digital era, information is priceless, and encryption acts as a necessary means to safeguard it. Thus, Regulators are working to maintain the swiftness of shift in the industry, as the dearth of transparency in the law has made it challenging to implement regulations. There is also less awareness about cyber security in India due to the following grounds such as the lack of ethical hackers in the country, companies in India lacking focus on cyber security and hiring a team of ethical hackers and cyber security experts. Furthermore, there has been a lack of knowledge among the citizens as well.
It is essential to realise the conceivable social and economic consequences and take measures to handle the online gambling industry. The industry has thus been undersized in the mode of research following online crime and Internet gambling, even though it is an acute emphasis. There is also a pressing necessity to rebuild these regulations to tackle the more unbridled cyber security hazards swarming the gaming industry. Similarly, there is an urgent need for governments and policymakers around the world to start paying more attention to the gaming industry as cyber security threats continue to rise. There should be a further need to strengthen the regulatory framework, establish Self Regulatory Organizations (SROs), create ethical gaming designs and increase awareness among gamers. The Government of India should consider devising its own rating system to rate games so that players under 18 cannot access them.
Eventually, cyber security is a shared commitment, and everyone in the online gambling ecosystem must function jointly to provide a secure and safe setting for all.
References:
- https://truefort.com/gambling-industry-cybersecurity/
- https://www.orfonline.org/research/cybersecurity-threats-in-online-gaming-learnings-for-india
- https://www.hackread.com/chinese-scammers-cloned-websites-gambling-network/
- https://www.civilsdaily.com/news/cybersecurity-threats-from-online-gaming/
- https://www.linkedin.com/pulse/legal-considerations-online-gambling-india-sudden-increase-mathur/
- https://www.jsheld.com/insights/articles/the-importance-of-cybersecurity-in-the-online-sports-betting-industry
- https://www.the420.in/agra-cyber-cell-takes-down-27-illegal-betting-sites/
- https://g2g.news/gaming/ministry-of-home-affairs-releases-new-awareness-campaign-for-online-gaming-in-india/
- https://smestreet.in/technology/kaspersky-warns-of-increased-phishing-scams-and-data-breaches-in-apac-for-2024-2381601
- https://economictimes.indiatimes.com/tech/newsletters/morning-dispatch/govt-bans-mahadev-other-illegal-betting-apps-cyber-attacks-against-india-spike/articleshow/104996017.cms?from=mdr
- https://cipher.com/cybersecurity-for-gambling/
- https://www.mangalorean.com/tightening-the-reins-indian-government-blocks-over-550-illegal-betting-and-gambling-apps/
- https://cybersecurityasean.com/news-press-releases/kaspersky-predicts-rise-cyber-threats-across-apac-2024
- https://www.cnbctv18.com/technology/mahadev-betting-app-scam-ed-money-laundering-upi-celebrities-under-scanner-17815661.htm
- https://iclg.com/practice-areas/gambling-laws-and-regulations/india
Introduction
All citizens are using tech to their advantage, and so we see a lot of upskilling among the population leading to innovation in India. As we go deeper into cyberspace, we must maintain our cyber security efficiently and effectively. When bad actors use technology to their advantage, we often see data loss or financial loss of the victim, In this blog, we will shine light upon two new forms of cyber attacks, causing havoc upon the innocent. The “Daam” Malware and a new malicious app are the two new issues.
Daam Botnet
Since 2021, the DAAM Android botnet has been used to acquire unauthorised access to targeted devices. Cybercriminals use it to carry out different destructive actions. Using the DAAM Android botnet’s APK binding service, threat actors can combine malicious code with a legitimate application. Keylogging, ransomware, VOIP call records, runtime code execution, browser history collecting, incoming call recording, PII data theft, phishing URL opening, photo capture, clipboard data theft, WiFi and data status switching, and browser history gathering are just a few of the functions offered by the DAAM Android botnet. The DAAM botnet tracks user activity using the Accessibility Service and stores keystrokes it has recorded together with the name of the programme package in a database. It also contains a ransomware module that encrypts and decrypts data on the infected device using the AES method.
Additionally, the botnet uses the Accessibility service to monitor the VOIP call-making features of social media apps like WhatsApp, Skype, Telegram, and others. When a user engages with these elements, the virus begins audio recording.
The Malware
CERT-IN, the central nodal institution that reacts to computer security-related issues, claims that Daam connects with various Android APK files to access a phone. The files on the phone are encrypted using the AES encryption technique, and it is distributed through third-party websites.
It is claimed that the malware can damage call recordings and contacts, gain access to the camera, change passwords, take screenshots, steal SMS, download/upload files, and perform a variety of other things.
Safeguards and Guidelines by Cert-In
Cert-In has released the guideline for combating malware. These were issued in the public interest. The recommendations by Cert-In are as follows-
Only download from official app stores to limit the risk of potentially harmful apps.
Before downloading an app, always read the details and user reviews; likewise, always give permissions that are related to the program’s purpose.
Install Android updates solely from Android device vendors as they become available.
Avoid visiting untrustworthy websites or clicking on untrustworthy
Install and keep anti-virus and anti-spyware software up to date.
Be cautious if you see mobile numbers that appear to be something other than genuine/regular mobile numbers.
Conduct sufficient investigation Before clicking on a link supplied in a communication.
Only click on URLs that clearly display the website domain; avoid abbreviated URLs, particularly those employing bit.ly and tinyurl.
Use secure browsing technologies and filtering tools in antivirus, firewall, and filtering services.
Before providing sensitive information, look for authentic encryption certificates by looking for the green lock in your browser’s URL information, look for authentic encryption certificates by looking for the green lock in your browser’s URL bar.
Any ‘strange’ activity in a user’s bank account must be reported immediately to the appropriate bank.
New Malicious App
From the remote parts of Jharkhand, a new form of malicious application has been circulated among people on the pretext of a bank account closure. The bad actors have always used messaging platforms like Whatsapp and Telegram to circulate malicious links among unaware and uneducated people to dupe them of their hard-earned money.
They send an ordinary-looking message on Whatsapp or Telegram where they mention that the user has a bank account at ICICI bank and, due to irregularity with the credentials, their account is being deactivated. Further, they ask users to update their PAN card to reactivate their account by uploading the PAN card on an application. This app, in turn, is a malicious app that downloads all the user’s personal credentials and shares them with the bad actors via text message, allowing them to bypass banks’ two-factor authentication and drain the money from their accounts. The Jharkhand Police Cyber Cells have registered numerous FIRs pertaining to this type of cybercrime and are conducting full-scale investigations to apprehend the criminals.
Conclusion
Malware and phishing attacks have gained momentum in the previous years and have become a major contributor to the tally of cybercrimes in the country. DaaM malware is one of the examples brought into light due to the timely action by Cert-In, but still, a lot of such malware are deployed by bad actors, and we as netizens need to use our best practices to keep such criminals at bay. Phishing crimes are often substantiated by exploiting vulnerabilities and social engineering. Thus working towards a rise in awareness is the need of the hour to safeguard the population by and large.
Cyber attacks in India besides becoming common are also getting deadlier. Each strike has taken proportions to drive home the fact that no one is safe.
Hacker ‘John Wick’, hasn’t spared India’s PM or Paytm. Cyber intelligence firm Cyble which dredges the Dark Web has red-flagged hacking episodes at Truecaller, Dunzo, Unacademy, Naukri.com, Bharat Earth Movers Limited (BEML), LimeRoad and IndiaBulls.Picture this, Mumbai-based cybersecurity firm Sequretek, says in Covid-hit 2020, India has seen a 4000% spike in phishing emails and a 400% uptake in the number of policy violations that have grown over 400% as per the latest statistics.Besides the threat to crucial data, the cost suffered by companies is phenomenal. According to a report by IBM’s ‘Cost of a Data Breach Report 2020’ report, Indian companies witnessed an average $2 Mn total cost of data breach in 2020, this is an increase of 9.4% from 2019.
Another survey by Barracuda Networks revealed that 66% of Indian organisations have had at least one data breach or cybersecurity incident since shifting to a remote working model during the pandemic.
Indian Startups At Mercy Of Cyber Attacks
More recently personal data of 2.8 Lakh WhiteHat Jr students and teachers were exposed, where crucial details of minors have been made available on the dark web. Another major breach that took place this week and exclusively reported by Inc42 was when data of 1.4 Mn job seekers was leaked when jobs portal IIMjobs was hacked.
Vineet Kumar, the founder of Cyber Peace Foundation (CPF), a think tank of cybersecurity and policy experts, said that with the increased digitisation of companies and their processes, data has become the new oil.
“You get good money when you sell users data on the dark web. Hackers discovering vulnerabilities and using SQL injections to pull entire databases remains a common practice for hacking,” Kumar told Inc42.
The CyberPeace Foundation says from mid-April to the end of June it noticed 8,98,7841 attacks, July and August saw 64,52,898 attacks. Whereas September and October saw 1,37,37,516 attacks and 18,149,233 attacks respectively.
Speaking to Inc42, Pankit Desai, cofounder and CEO, Sequretek says, “Originally only a limited set of systems were being exposed, now with WFH all systems have to be exposed to the internet as all your processes are enabled remotely. WFH also creates an additional challenge where ‘personal assets are being used for professional purposes’ and ‘professional assets are being used for personal purposes.”
Malwares like SpyMax, Blackwater are being used as a combination of phishing mails and poorly secured home computers to harvest credentials. These credentials are then used for carrying out attacks. The number of attacks with harvested credentials is already up 30%, the company revealed.
Government data shows that in 2019 alone, India witnessed 3.94 lakh instances of cybersecurity breaches. In terms of hacking of state and central government websites, Indian Computer Emergency Response Team (CERT-In) data shows that a total of 336 websites belonging to central ministries, departments, and state governments were hacked between 2017 and 2019.
According to Nasscom’s Data Security Council of India (DSCI) report 2019, India witnessed the second-highest number of cyber attacks in the world between 2016 and 2018. This comes at a time when digitisation of the Indian economy is predicted to result in a $435 Bn opportunity by 2025.On September 22, the Ministry of Electronics and Information Technology (MeITY) told the Parliament that Indian citizens, commercial and legal entities faced almost 7 lakh cyberattacks till August this year.
The Indian Computer Emergency Response Team (CERT-In) has “reported 49,455, 50,362, 53,117, 208,456, 394,499 and 696,938 cybersecurity incidents during the year 2015, 2016, 2017, 2018, 2019 and 2020 (till August) respectively,” the MeITY said while responding to an unstarred question in the Lok Sabha regarding cyberattacks on Indian citizens and India-based commercial and legal entities.“
India also lacks a cohesive nation-wide cyber-strategy, policies, and procedures. Regulations around data privacy, protection, and penalty should be enacted and enforced as these measures will help businesses evaluate their cybersecurity posture and seek ways to improve. Currently, incident reporting is not mandatory. By making it compulsory, there will be a body of research data that can provide insights on threats to India and inform the government on strategies it can undertake to strengthen the nation’s cyber posture,” said Kumar Ritesh, founder and CEO, Cyfirma.The Internet Crime Report for 2019, released by the USA’s Internet Crime Complaint Centre of the Federal Bureau of Investigation (FBI), has revealed that India stands third in the world among top 20 countries that are victims of internet crimes.
Kumar attributes these numbers to Indian’s lack of basic cyber awareness. However, a poignant point is also the lack of a robust cybersecurity policy in India. Though the issue was touched upon by Prime Minister Narendra Modi during his Independence Day speech on Aug 15, 2020, not much movement has happened on that front.
“Cybersecurity is a very important aspect, which cannot be ignored. The government is alert on this and is working on a new, robust policy,” Modi said.The PM’s announcement was made in the backdrop of the government’s initiative to connect 1.5 lakh gram panchayats through an optical fiber network, thereby increasing the country’s internet connectivity.
With India pipped to take on the world with its IT prowess and increased digital integration the need for a robust policy is now more than ever.
Source: https://inc42.com/buzz/3-94-lakhs-and-counting-how-cyberattacks-are-a-worry-for-digital-india/
