IBM Transforms Business Operations with the RISE with SAP Solution in Expanded Partnership with SAP

ARMONK, N.Y. and WALLDORF, GermanyMay 11, 2022 — IBM and SAP today announced the latest milestone in their long-standing partnership as IBM undertakes one of the world’s largest corporate transformation projects based on SAP® ERP software, designed to fuel the company’s growth and better support its clients.

As part of the expanded partnership, IBM is migrating to SAP S/4HANA®, SAP’s next-generation ERP software, to perform work across more than 120 countries, 1,000 legal entities and numerous IBM businesses supporting software, hardware, consulting and finance. The project is focused on improving business processes with RISE with SAP S/4HANA Cloud, private edition, premium supplier option with IBM Consulting, and will ultimately move more than 375 TB of data to IBM Power on Red Hat Enterprise Linux on IBM Cloud. RISE with SAP brings together what businesses need to pursue their digital transformation objectives and accelerate their move to the cloud.

Driven by the need to modernize processes and deliver better insights to support clients running in the cloud, RISE with SAP is helping IBM centralize and standardize data worldwide. With access to the SAP HANA® database, data can be accessed in real time and shared more efficiently among business units and teams. The expanded partnership will also help with improved decision-making supported by AI and automated workflows. Once the transformation is completed, nearly all of IBM’s US$58 billion in revenue will flow through SAP software.

“This expanded partnership will enable IBM to accelerate its business transformation in the cloud and fuel its future growth,” said Christian Klein, CEO and Member of the Executive Board of SAP SE. “As a result, IBM will be positioned to provide the highest value of support and flexibility to its clients, allowing them to simplify and accelerate their business transformations while benefitting from the full value of RISE with SAP.”

This business transformation will eventually move more than 300 SAP instances and consolidate 500 servers with the RISE with SAP solution on IBM Power on Red Hat Enterprise Linux on IBM Cloud. The migration to SAP S/4HANA is already in progress across the company’s software business unit. The initial deployment is focused on IBM’s software-as-a-service and billing system and is already benefiting clients and IBM business partners through simplified billing and payment systems while enabling orders and contracts to be processed quickly.

IBM Consulting, with more than 38,000 highly trained SAP consultants, is leading the transformation providing the advisory, implementation, security, industry and technical expertise required to move these complex systems and applications to a digital environment. This is another example of IBM and SAP’s accelerated ecosystem strategy, teaming up on both technology and consulting expertise while supporting most any cloud environment to help make it easier for clients to embrace a hybrid cloud approach and move their mission-critical SAP software workloads to the cloud.

“Enterprise clients are seeking increased choice and control as they modernize their mission-critical workloads. Enabled by RISE with SAP, this is a milestone business transformation initiative for both companies due to its complexity and scale,” said Arvind Krishna, IBM Chairman and Chief Executive Officer. “With this move, and IBM’s experience using RISE with SAP internally, we will be even better prepared to support our clients on their hybrid cloud and business transformation journeys.”

Expanded Premium Supplier Option for RISE with SAP on IBM Power on Red Hat Enterprise Linux on IBM Cloud

To provide clients more flexibility and computing power, including those in highly regulated industries, IBM is making the same cloud-based computing power that is underpinning its own migration available to clients. For clients who run RISE with SAP on IBM Cloud, an expansion of the premium supplier option provides an additional choice to run workloads on IBM Power on Red Hat Enterprise Linux on IBM Cloud.

As a premium supplier, IBM was the first cloud provider to offer infrastructure, technical managed services, business transformation and application management services as part of RISE with SAP. With clients increasingly leveraging hybrid cloud strategies to modernize their workloads, IBM and SAP are giving clients running on Power servers the ability to use RISE with SAP S/4HANA on Power infrastructure consistent with the architecture they run on premise. Underpinned exclusively by Red Hat Enterprise Linux, businesses running IBM Power on IBM Cloud will be able to achieve high levels of performance in a cloud environment for their mission-critical workloads, with the flexibility, resiliency and security features delivered by IBM and Red Hat.

 

 

Object Management Group® Announces Responsible Computing with Founding Members IBM and Dell

ARMONK, N.Y. – June 2, 2022 – Today Object Management Group® (OMG®) announced Responsible Computing (RC™), a new consortium comprised of technology innovators working together to address sustainable development goals. Responsible computing is a systemic approach aimed at addressing current and future challenges in computing, including sustainability, ethics, and professionalism, stemming from the belief that we need to start thinking about technology in terms of its impact on people and the planet.

“Responsible Computing aims to shift thinking and, ultimately, behavior within the IT industry and affect real change,” said Bill Hoffman, Chairman, and CEO of RC and OMG. “We’ve made our manifesto and framework freely available, and we’ve asked every RC member to implement RC principles. Our goal is that someday every IT professional will adhere to RC principles.”

The new consortium’s manifesto defines RC values to restore trust in IT by responsibly applying technology and by sharing experiences with other organizations. These values include sustainability, inclusiveness, circularity, openness, authenticity, and accountability.

The consortium’s RC framework focuses on six domains of responsible computing, including:

  • Data centers – are designed and operated with a focus on efficiency and sustainability, including emphasizing green energy and improving the handling and disposal of chemicals, toxic materials, and rare metals.
  • More sustainable infrastructure – monitoring the energy usage of products and technologies. Efficient and more sustainable operations, including proper disposal of products.​
  • Code – choosing code that optimizes environmental, social, and economic impact over time. Optimal code includes efficient algorithms, frameworks, and tools and KPIs to accelerate decision-making and pinpoint areas requiring more scrutiny during software development.
  • Data usage – the safe use of data will drive transparency, fairness, privacy, and respect for users.
  • Systems – that address bias and discrimination by driving equality for all, for example, the use of Artificial Intelligence (AI) for transparency.​
  • Impact – the technologies and innovations that drive a positive impact on society at large such as building to improve human conditions and mitigate social risk.

Through interviews with over 100 CTOs concerns were raised around developing practical actions to progress Environmental, Social, and Governance (ESG) programs. They wanted to contribute to becoming more sustainable businesses and demonstrate progress through consistent metrics. In November 2020, IBM’s Academy of Technology (AoT)’s responded to these challenges and created the Responsible Computing Council, an international team of technology and computing leaders who collaborate in validation and the implementation of the RC framework and lead by example in becoming a responsible computing provider. Object Management Group (OMG) was an early member of the council, and shortly after that, the OMG board approved the formation of the RC consortium.

“Now is the time for companies to adopt a holistic approach that places sustainability strategy at the center of their business,” said Sheri Hinish, Global Lead, IBM Consulting Sustainability Services. “Under IBM Impact, our new ESG Strategy, we are working to make a lasting, positive Impact in the communities in which we work and live. IBM is proud to be a founding member of the RC consortium and through this collaboration we hope to help companies establish new and innovative ways to transform their business operations through ethical, impactful ways that can help contribute to a more sustainable future. ”

“Dell is proud to be a founding member of the RC consortium. We are aligned with and driven by a similar passion to help leading technology organizations realize their sustainable development goals, in line with the planet’s,” said Marc O’Regan, CTO EMEA, Dell Technologies. “In addition to being socially and environmentally responsible, we also expect that RC members will see improved go-to-market solutions, strategies and bottom-line results by following RC principles.”

An organization can become more operationally efficient and demonstrate a return on investment (ROI) when meeting sustainability goals. The ROI can potentially include:​

  • Reduced power consumption​
  • Waste reduction for packaging​
  • Cost-effective heating and cooling solutions​
  • Supply chain efficiency, and more

“As a college with almost 16,000 students and top-10 undergraduate and top-4 graduate program in the U.S., Purdue Engineering is excited to work with Dell, IBM, and other industry leaders in this new consortium of responsible computing,” said Mung Chiang, Executive Vice President and Dean of College of Engineering at Purdue University. “We particularly look forward to advancing technologies for user security, data privacy, freedom-preserving AI, and computing innovations that propel economic growth throughout society.”

“Technology plays an ever-increasing role across all industries and can unlock many benefits in terms of efficiency, sustainability, and wider society. But we need to be careful about deploying technology to make sure that we harvest the benefits without exposing ourselves to unintended consequences,” said Jim Morrish, Founding Partner, Transforma Insights. “AI deployed to support building automation can unlock significant energy savings, to name one example, but we need to ensure this isn’t at the cost of individual privacy. Transforma Insights looks forward to working with the wider technology ecosystem to ensure society gains the maximum benefit from new and emerging technologies.”

Rob Deri, Chief Executive at BCS, The Chartered Institute for IT said, “BCS became a groundbreaking member of Responsible Computing because our membership community shares the belief that technology can and must drive positive change in society. We are proud to be part of an international coalition that prioritizes the role of IT in understanding and reducing climate change, closing the digital divide, promoting equality of opportunity and growing public trust in tech through global professional standards.”

“Changing how we manage Information and technology infrastructures is crucial to reducing carbon emissions and securing climate justice,” said Professor Jamie Cross, Director of the Edinburgh Earth Initiative, University of Edinburgh. “The University of Edinburgh, the UK’s nationally leading centre for supercomputing and globally-leading hub for data-driven innovations, artificial intelligence and data science, is delighted to join this global initiative to promote responsible computing. We are excited to work together across the Responsible Computing consortium to deliver transformational positive change that can only be achieved through novel technologies, approaches, and alliances.”

RC spans a broad cross-section of industries, including consumer, financial services, travel & transport, insurance, government, energy, environment & utilities, telco & media, and industrial verticals.

SL Green Adopts IBM Technology to Operationalize Sustainability Initiatives Across Extensive NYC Real Estate Portfolio

ARMONK, N.Y and NEW YORKJune 2, 2022  — Today IBM (NYSE: IBM) and SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office landlord, announced that SL Green is leveraging IBM sustainability software to help advance their company’s environmental, social and governance (ESG) strategy. SL Green will use software from Envizi, an IBM Company, to better understand and report on its environmental initiatives, identify opportunities for greater efficiency and further drive sustainability across its extensive real estate operations.

As the largest owner of office real estate in New York CitySL Green is focused on effectively managing its portfolio of Manhattan commercial properties, with interest in more than 70 buildings totaling 34.9 million square feet. In the face of climate change and quickly evolving societal challenges, SL Green is committed to a broad set of sustainability initiatives and goals – from environmental efforts such as optimizing energy, water and waste management, to sustainable development of new properties, and programs to benefit the health and safety of both tenants and the local community. In 2021, SL Green aligned with the Urban Land Institute (ULI) Net Zero by 2050 goal of carbon neutral building operations and remains committed to setting a Science-Based Target for greenhouse gas emissions.

Having access to the right data is crucial for many organizations to make meaningful progress toward their sustainability goals but this data is often highly fragmented across various formats and locations, making it difficult for all relevant parties to leverage. In a recent IBM study, 44% of surveyed CEOs cited “lack of insights from data” as a leading challenge to achieving their sustainability objectives.1 In January, IBM acquired Envizi to offer organizations technology to help streamline and automate their collection, analysis and reporting of ESG data, with simplified dashboards and visualizations that can make these insights more accessible to stakeholders of all types.

“As the largest owner of office real estate in New York, we have been pioneers in ESG, taking action to support the City’s vital sustainability initiatives,” said Laura Vulaj, Senior Vice President & Director of Sustainability at SL Green. “Being committed to making data-driven decisions has been a crucial differentiator for us, and Envizi’s advanced technology can enable us to further streamline these initiatives in a transparent and measurable way for our stakeholders.”

Working with IBM, SL Green will use Envizi software as a service (SaaS) to help manage and accelerate sustainability initiatives across its portfolio. For example:

  • Create a single system of record for sustainability and ESG data: Envizi can help SL Green streamline the collection of data from a wide range of sources such as utility data, renewable energy certificates, waste data, business travel, purchased goods and services, in order to provide all stakeholders with consistent data for reporting, analysis and decision making – for example, to support Scope 1, 2 and 3 GHG emission calculations.
  • Analyze data to inform sustainability decision-making: SL Green can apply Envizi’s advanced analytics to transform this data into insights on the performance of its portfolio, which can help drive better decisions and meet sustainability goals. For example, Envizi could help SL Green calculate greenhouse gas emissions, set decarbonization targets and track progress towards its emissions reduction goals.
  • Streamline ESG and sustainability reporting: SL Green is committed to transparent ESG disclosures and reports its performance under a wide variety of ESG reporting frameworks including CDP, SASB, TCFD, GRI, CSA (DJSI) and SBTi. Envizi’s ESG reporting capabilities can make it easier for SL Green to streamline these reporting processes, with all reporting questions and responses managed within a single software interface.

“The ability to transform widespread operational and environmental data into insights that business leaders and stakeholders can understand is a foundational step towards making sustainability initiatives effective and scalable,” said Kareem Yusuf, Ph.D., General Manager, IBM Sustainability Software. “By taking a 360-degree approach, supported by connections between data, technologies and processes, companies can operationalize sustainability initiatives across their organization.”

This collaboration between IBM and SL Green comes on the heels of the recent announcement that IBM has signed on as an anchor tenant for One Madison Avenue, SL Green’s 1.4 million square foot, state-of-the-art redevelopment scheduled for completion in November 2023.

More than $18-million investment to strengthen research and innovation in Newfoundland and Labrador

ST. JOHN’S, NLMay 27, 2022  — Memorial University, IBM Canada, the Government of Canada and the Government of Newfoundland and Labrador today announced the launch of two new initiatives – the Centre for Analytics, Informatics and Research (CAIR) and the Accelerated Analytics and Machine Learning (AAML) project.

Led by Memorial, the two initiatives will focus on innovation and research in such diverse fields as data science and astrophysics, genetic analysis, artificial intelligence, machine learning, image analysis and scientific computing.

CAIR will be equipped with powerful high-performance computers able to process huge amounts of complex data, leading to faster insights for projects such as AAML.

Memorial will receive a more than $18-million investment from the Government of Canada, through the Atlantic Canada Opportunities Agency (ACOA), and the Government of Newfoundland and Labrador, as jurisdictional partners, and private-sector partner IBM. This includes a $16-million, in-kind investment of hardware, software and staffing from IBM during a period of four years. IBM will also provide free development and cloud credits to early stage entrepreneurs and startup companies via the Startup with IBM program. ACOA is providing $1.4 million towards the two initiatives and the Government of Newfoundland and Labrador will contribute $1.35 million.

Working with Memorial, IBM will also help drive further economic development in the province by supporting skills growth via the IBM SkillsBuild program. The free digital training program helps learners develop valuable new skills and find jobs, regardless of their background or education. SkillsBuild provides learners with professional workplace readiness and technical skills and enables them to earn digital badges recognized by the market. Globally, IBM is committed to providing 30 million people with new skills needed for the jobs of tomorrow by 2030.

This undertaking builds on the tremendous success of the partnership first formed in 2014 between IBM, Memorial and both governments.

Quotes:

“Ongoing collaborations with our government and industry partners allow Memorial to meet the challenges and opportunities of our province and beyond. These significant investments will further enhance Memorial’s capacity in strategic areas, provide world-class scientific training opportunities for faculty and graduate students and allow Memorial to continue supporting the tremendous growth of the local technology industry.”
Dr. Vianne Timmons
President and vice-chancellor, Memorial University

“Our goal is to deliver more diverse computing services to teaching and research communities, to speed up their processes of scientific and technical innovations, and to further increase our contributions in Newfoundland and Labrador. This investment is a testament to our continued commitment to support and collaborate with Memorial University and both levels of government to help further advance Canada’s ability to innovate, address a critical skills gap, and drive research and innovation.”
Frank Attaie
General Manager-Technology, IBM Canada

“The Government of Canada, through ACOA, is committed to working with key partners to help build the digital economy and support long-term economic growth in this region. By investing in high-tech equipment and skills development at Memorial University, we are supporting innovative learning, advanced research and opportunities to grow the technology industry.”
Joanne Thompson
Member of Parliament for St. John’s East, on behalf of the Honourable Ginette Petitpas Taylor, Minister of Official Languages and Minister responsible for ACOA

“Industry has made it clear that as our innovation economy grows, there is a greater need for more highly qualified people or talent. This collaboration will provide access to high performance computing within our province, allowing for even more opportunities for researchers, industry partnerships and the start-up community to meet the growing needs of our tech sector.”
Honourable Andrew Parsons
Minister of Industry, Energy and Technology, Government of Newfoundland and Labrador

Quick Facts:
  • Principal investigator for the Centre for Analytics, Informatics and Research (CAIR) is Dr. Brendan Barrett, professor, Faculty of Medicine.
  • Principal investigator for the Accelerated Analytics and Machine Learning (AAML) project is Dr. Terrence Tricco, assistant professor, Department of Computer Science, Faculty of Science.
  • CAIR is a high-performance computing centre with the capacity to rapidly process and analyze vast amounts of data, providing secure storage with off-site backups.
  • CAIR is a local dedicated resource with qualified personnel who can assist research teams in planning their data management approach and provide flexible and timely access to necessary computer resources.
  • The hardware at CAIR will be used by Department of Computer Science faculty and students to undertake research in many key areas that are driven by large data sets, such as image processing, artificial intelligence and deep learning.
  • The AAML project will support training of highly qualified professionals on CAIR hardware.
  • As the local technology industry continues to grow rapidly, the demand for highly qualified professionals in technology-related fields such as data science will certainly increase. CAIR’s hardware infrastructure and supportive staffing complement will be instrumental in meeting training and research needs, ensuring professional training that meets regional and national competitiveness.

IBM and MBZUAI Join Forces to Advance AI Research with New Center of Excellence

ABU DHABI, United Arab EmiratesMay 25, 2022 — Mohamed bin Zayed University of Artificial Intelligence (MBZUAI)—the world’s first graduate, research university dedicated to Artificial Intelligence (AI)—has announced plans for a strategic collaboration with IBM. Senior leaders from both organizations signed a Memorandum of Understanding aimed at advancing fundamental AI research, as well as accelerating the types of scientific breakthroughs that could unlock the potential of AI to help solve some of humanity’s greatest challenges.

Professor Eric Xing, President of MBZUAI, delivered short remarks, as did Jonathan Adashek, IBM’s Senior Vice President and Chief Communications Officer, and Saad Toma, General Manager, IBM Middle East, and Africa. The agreement was then signed by Sultan Al Hajji, Vice President for Public Affairs and Alumni Relations at MBZUAI and Wael Abdoush, General Manager IBM Gulf and Levant.

“We’re excited to to be among the first research universities in the MENA region to host a Center of Excellence for AI research and development with technology and expertise from a world-leading technological giant like IBM. This center will provide highly valuable resource and collaborative environment to our faculty and students to broaden their work in AI. IBM has a long history of technological innovation, and we look forward to joining their latest efforts in our region and together advance AI technology and commercialization for mutual good,” MBZUAI President, Professor Eric Xing said.

Saad Toma, General Manager, IBM Middle East and Africa, said: “This collaboration will help drive innovations in AI which is critical for the future of business and society. We’re bringing together some of the brightest minds across both the industry and academia, while reinforcing IBM’s commitment to promoting knowledge and skills in critical areas for the UAE’s development, where the use of technologies like AI is fundamental.”

Central to the collaboration is the establishment of a new AI Center of Excellence to be based at the university’s Masdar City campus. The Center will leverage the talents of IBM researchers, in collaboration with MBZUAI faculty and students, and will focus on the advancement of both fundamental and applied research objectives.

The initiative seeks to develop, validate, and incubate technologies that harness the capabilities of AI to address civic, social, and business challenges. Further, the collaboration aims to provide real-life applications, particularly in the fields of natural language processing, as well as AI applications that seek to further climate and sustainability goals, and accelerate discoveries in healthcare.

IBM will provide targeted training and technologies as part of the initiative, which supports the university’s vision to be a global leader for advancing AI and its application for the good of society and business. For example, through the IBM Academic Initiative, IBM will provide MBZUAI students and faculty  with access to IBM tools, software, courseware and cloud accounts for teaching, learning, and non-commercial research. In addition, through the IBM Skills Academy program, MBZUAI will have access to curated AI curricula, lectures, labs, industry use cases, design-thinking sessions, and an AI Practitioner certification.

The planned relationship is subject to the parties reaching definitive agreements.

IBM and Red Hat Technology Launch to Space on EnduroSat’s Shared Sat Service

Sofia, Bulgaria – May 25, 2022 — EnduroSat, leading provider of software-defined NanoSats and Space services for business and academia, announced that open source, hybrid cloud and AI technologies from IBM and Red Hat are part of its second mission, which is scheduled to launch to low earth orbit at 2:25 PM ET today.

An Earth Observation and in-orbit Edge Computing payloads from IBM were integrated on EnduroSat’s software-defined NanoSat and are due to launch from Cape Canaveral, FL. These solutions use a minimal footprint distribution project of Red Hat OpenShift, which is optimized to work directly on edge devices to run containers in space.

EnduroSat is working with IBM to provide developers and students around the globe with a fast and easy way to process space data even before getting it back to the ground. IBM’s project, codenamed “Endurance,” uses IBM’s edge computing in space solution. It is designed to help more people discover the wonders of space, using IBM and Red Hat hybrid cloud technologies. In a hybrid cloud environment, student participants will be able to securely host, access and push code on IBM Cloud, which will connect to EnduroSat’s Digital Mission environment, then a ground station, and ultimately, the NanoSat. The code will be used to access data from various sensors, take pictures, perform calculations, and get the results back to earth.

Through its Shared Satellite Service, EnduroSat aims to provide visionary entrepreneurs, scientists, and technologists easy access to space, helping them to drive innovation at this final frontier. The company`s software-defined NanoSats enable plug & play payload integration and open unique capabilities to fly fast and improve the usage of technology in space.

“We are thrilled to welcome IBM onboard our Shared Sat Missions. We are excited to see the rapid data services deployment and the innovations that our partners are unleashing in orbit. The collaboration between EnduroSat and IBM is a major step in bringing space closer to users on the ground.”

  • Raycho Raychev, Founder & CEO of EnduroSat

The IBM team’s project goal for this mission is to help streamline the process for getting school-aged children access to the wonders of space using technology so participating students can interact directly with a CubeSat, a type of NanoSat built in cube form, in Low Earth Orbit.

By running experiments on EnduroSat’s Cube satellite, the IBM team is taking data processing closer to where data is being produced, to get near real-time results. The workload uplink request initiates in IBM Cloud to send code up and receive data back. The project provides not only an opportunity to save bandwidth, but also expedite data processing by sorting images at the “edge” and downloading only the valuable data via IBM Cloud.

As part of IBM’s ongoing skills-building initiatives, five teams of students who participate on IBM skilling programs have been selected to work with the IBM development and volunteer teams for this project. IBM Cloud provides a development environment for the students to build code and send it into space. The teams are from P-TECH 535 (Rochester, MN, U.S.), Falcon Tech (Longmont, CO, U.S..), Leeds City College (Leeds, U.K.) and two teams from National Taipei University of Technology (Taiwan). Each team will have the opportunity to learn from IBMers on topics such as engineering and coding. Workplace skills such as collaboration, analytical thinking, agility and entrepreneurship will also be conveyed.

“This work to help democratize access to space will help further accelerate space exploration and innovation. IBM’s edge computing in space experiment will run containers in space and apply AI on the raw data being produced on the satellite. The actionable insights gained will be communicated back to IBM Cloud on earth, a hybrid solution extending from terrestrial networks to the far edge in space. We are ecstatic about our Endurance project, and to be ‘going to space’ in collaboration with EnduroSat. The sky is not the limit.”

  • Naeem Altaf, IBM Distinguished Engineer & CTO Space Tech

Responsibility for AI Ethics Shifts from Tech Silo to Broader Executive Champions, says IBM Study

-80% of respondents in this year’s survey pointed to a non-technical executive as the primary advocates for AI ethics, compared to 15% in 2018
– 79% of CEOs surveyed are prepared to implement AI ethics practices but less than a quarter of organizations have acted on it
– 68% of organizations acknowledge diversity is important to mitigating bias in AI, but respondents indicated their AI teams are: 5.5 times less inclusive of women, 4 times less inclusive of LGBT+ individuals and 1.7 times less racially inclusive

ARMONK, N.Y., April 14, 2022 — A new IBM Institute for Business Value (IBV) study revealed a radical shift in the roles responsible for leading and upholding AI ethics at an organization. When asked which function is primarily accountable for AI ethics, 80% of respondents pointed to a non-technical executive, such as a CEO, as the primary “champion” for AI ethics, a sharp uptick from 15% in 2018.

Experience the interactive Multichannel News Release here: multivu.com/players/English/9002052-ibm-study-ai-ethics-action-enterprise-guide-progressing-trustworthy/

Which function is primary responsible for AI ethics?

The global study* also indicates that despite a strong imperative for advancing trustworthy AI, including better performance compared to peers in sustainability, social responsibility, and diversity and inclusion, there remains a gap between leaders’ intention and meaningful actions. The study found:

Business executives are now seen as the driving force in AI ethics

  • CEOs (28%) – but also Board members (10%), General Counsels (10%), Privacy Officers (8%), and Risk & Compliance Officers (6%) are viewed as being most accountable for AI ethics by those surveyed.
  • While 66% of respondents cite the CEO or other C-level executive as having a strong influence on their organization’s ethics strategy, more than half cite board directives (58%) and the shareholder community (53%).

Building trustworthy AI is perceived as a strategic differentiator and organizations are beginning to implement AI ethics mechanisms.

  • More than three-quarters of business leaders surveyed this year agree AI ethics is important to their organizations, up from about 50% in 2018.
  • At the same time, 75% of respondents believe ethics is a source of competitive differentiation, and more than 67% of respondents that view AI and AI ethics as important indicate their organizations outperform their peers in sustainability, social responsibility, and diversity and inclusion.
  • Many companies have started making strides. In fact, more than half of respondents say their organizations have taken steps to embed AI ethics into their existing approach to business ethics.
  • More than 45% of respondents say their organizations have created AI-specific ethics mechanisms, such as an AI project risk assessment framework and auditing/review process.

Ensuring ethical principles are embedded in AI solutions is an urgent need for organizations, but progress is still too slow

  • More surveyed CEOs (79%) are now prepared to embed AI ethics into their AI practices – up from 20% in 2018 — and more than half of responding organizations have publicly endorsed common principles of AI ethics.
  • Yet, less than a quarter of responding organizations have operationalized AI ethics, and fewer than 20% of respondents strongly agreed that their organization’s practices and actions match (or exceed) their stated principles and values.
  • 68% of surveyed organizations acknowledge that having a diverse and inclusive workplace is important to mitigating bias in AI, but findings indicate that AI teams are still substantially less diverse than their organizations’ workforces: 5.5 times less inclusive of women, 4 times less inclusive of LGBT+ individuals and 1.7 times less racially inclusive.

“As many companies today use AI algorithms across their business, they potentially face increasing internal and external demands to design these algorithms to be fair, secured and trustworthy; yet, there has been little progress across the industry in embedding AI ethics into their practices,” said Jesus Mantas, Global Managing Partner, IBM Consulting. “Our IBV study findings demonstrate that building trustworthy AI is a business imperative and a societal expectation, not just a compliance issue. As such, companies can implement a governance model and embed ethical principles across the full AI life cycle.”

The time for companies to act is now. The study data suggests that those organizations who implement a broad AI ethics strategy interwoven throughout business units may have a competitive advantage moving forward. The study provides recommended actions for business leaders including:

  • Take a cross-functional, collaborative approach – ethical AI requires a holistic approach, and a holistic set of skills across all stakeholders involved in the AI ethics process. C-Suite executives, designers, behavioral scientists, data scientists, and AI engineers each have a distinct role to play in the trustworthy AI journey.
  • Establish both organizational and AI lifecycle governance to operationalize the discipline of AI ethics – take a holistic approach to incentivizing, managing and governing AI solutions across the full AI lifecycle, from establishing the right culture to nurture AI responsibly, to practices and policies to products.
  • Reach beyond your organization for partnership – expand your approach by identifying and engaging key AI-focused technology partners, academics, startups, and other ecosystem partners to establish “ethical interoperability.”

IBM Study Finds Broad Differences in Geographical, Generational Impact of Financial Fraud and Attitudes Toward Financial Institutions

Study finds Americans average a higher frequency of fraudulent charges than other countries, while total value of theft is highest in regions outside of US

ARMONK, N.Y., April 5, 2022 — According to a new report commissioned by IBM, geographies and generations differ greatly in the frequency and impact of financial fraud, as well as their attitudes toward fraud detection and the institutions responsible for protecting them from bad actors.

The 2022 IBM Global Financial Fraud Impact Report also found that as global consumers have moved nearly exclusively to credit card and digital payments, US citizens have been victimized more regularly than all other countries surveyed in the report, costing American consumers an average of $265 per year in fraudulent financial charges made by unauthorized third parties.

“Financial fraud and cyber threats are a growing menace to global financial institutions and their clients, increasing the need for companies to accelerate preventative measures to stay ahead of sophisticated criminal activity,” said Shanker Ramamurthy, Managing Partner, Global Banking & Financial Markets, IBM. “As the global economy’s evolution toward a cashless society continues at breakneck speed, banks and other financial institutions must continue to invest in modernizing their infrastructure and bolstering critical talent to meet the challenges they face from bad actors.”

Global Financial Impact

According to the report, when it comes to fraud on a global scale, American citizens are the most frequent victims of debit card fraud of all the countries surveyed. Americans also registered a large percentage of instances when it comes to being victims of credit card fraud, banking fraud, or digital payment fraud, when respondents were asked about their experiences using digital payment apps including PayPal, Venmo and Square. American respondents also spent the most time trying to recover money lost due to fraudulent charges.

However, US credit and debit card users reported the second lowest amount of money lost on fraudulent charges out of the countries surveyed. Only Japan reported a lower amount of losses over the last 12 months, while Germany, by far, was the most victimized country, with respondents losing more than three times the total financial amount of the second most victimized country (Singapore).

Across all countries, respondents believe banks are the financial institution most responsible for preventing fraud, when asked about their experiences using payment networks including Visa and Mastercard. In most countries, consumers see banks as the most responsible financial institution for preventing fraud, with a higher percentage in Brazil, while in Japan, payment networks were the financial institutions most likely to blame. In China, respondents registered the highest percentage of consumers who think government regulators are most responsible for preventing fraud.

In the US, nearly one-quarter of all respondents (22%) are not confident in their bank or credit card’s ability to handle fraudulent charges or suspicious activity, not nearly as much as Japan, where almost one half of respondents claim to not have faith in their financial institutions.

One quarter of Americans (25%) report spending less than an hour a year checking their accounts for fraudulent activity – while more than two out of five US consumers (44%) spend less than ten hours per year checking their banking accounts.

With the US experiencing the highest number of financial fraud instances, it would make sense that the US has the highest percentage of respondents who had to contact their bank or credit card company to either cancel a card, dispute a charge, or reported losing money as the result of fraudulent charges.

Generational Differences Found in Study

The report also found a wide range of generational differences, as Millennials (born between 1981 and 1996) are consistently the biggest victims of all forms of fraud, ranging from credit and debit card fraud to digital wallet, digital payment, banking and tax fraud.

GenXers (born between 1965 and 1980) reported the second highest number of fraudulent charges made by their credit cards or digital payment apps, while GenZers (born between 1997 and 2012) report the third highest instances of losing money as the result of a fraudulent charges.

Millennials also spend the most time trying to recover money lost due to fraudulent charges, disputing fraudulent charges, and checking accounts for fraudulent or unusual activity out of any of the generational groups. GenZers spend the second most amount of time addressing fraudulent activity, followed by GenXers and Baby Boomers.

GenZers experienced fraud most frequently through digital payment apps when asked about their experiences using digital payment apps including PayPal, Venmo and Square, while all other generations experienced financial security issues most frequently by credit card fraud. GenZers were also the generation least impacted by credit card fraud.

While Millennials and GenZers were concerned financial fraud is most likely to occur through their digital payment apps, for GenXers and Baby Boomers, credit cards are the biggest concern when it comes to potential fraud targets.

Baby Boomers (born between 1946 and 1964) reported the lowest instances of fraudulent charges in nearly all categories, also spending the least amount of time trying to recover money due to fraudulent charges or dispute fraudulent charges.

However, when broken down further by generation, Millennials were more likely to buy from businesses with fraud protection, while Baby Boomers were the least likely to do so.

Other Findings
  • Credit card fraud is the most common type of fraud experienced across all countries. Nearly a third (31%) in Brazil have experienced credit card fraud.
  • Brazilian and Singaporean consumers are most concerned with financial security issues (85% of Brazilian and 79% of Singaporean respondents cite concerns with credit card fraud), but a substantial portion across all countries are concerned about credit card fraud, debit card fraud, digital payment fraud, digital wallet fraud, and banking fraud.
  • On average, German adults lost more due to fraudulent charges than adults in any other country – with an average of 3,520 euros ($3,917 in US currency) lost in the past twelve months due to fraudulent charges. Singapore had the second highest amount of fraudulent charges, with an average of S$1,648.52 Singapore dollars ($1,217 in US currency) per adult.
  • Japanese respondents are less confident in their bank/credit card company’s ability to handle fraud (only 59% have confidence in their financial institution’s ability to handle fraud prevention), but a majority across all countries feel confident in their bank/credit card company’s ability to handle fraud.
  • A majority of adults in all countries are “more likely” to purchase a product from a business that has fraud prevention technology in place, led by Brazil (91%) and China (90%).
About the 2022 IBM Global Financial Fraud Impact Report

IBM commissioned the study to maintain its understanding of present-day challenges that consumers are facing when it comes to financial fraud, as well as the ability of global financial institutions to retain control of their mission critical infrastructure to provide secure payment transactions in real-time.

The study was commissioned by IBM and conducted by Morning Consult, a third-party market research firm based in the United States. The study was conducted among 1000 adults in six countries: the US, China, Singapore, Brazil, Japan, and Germany. The study was conducted online, and the data were stratified to match a target sample of adults in US, China, Singapore, Brazil, Japan, and Germany on age and gender, then weighted based on age, gender, race, and education level. Results from the full survey have a margin of error of plus or minus 3 percentage points.

IBM Works with Discover to Co-Create Technology Solutions and Migrate to a Hybrid Cloud Platform

ARMONK, N.Y., March 30, 2022 — IBM Consulting is working with Discover Financial Services to help the leading digital bank and payments company enhance its digital transformation of applications and existing systems to a hybrid cloud architecture using Red Hat OpenShift.

“Consumers demand faster access to integrated digital banking and payments more than ever, with the assurance that their data will be protected,” said John Granger, Senior Vice President, IBM Consulting. “Embracing an open enterprise hybrid cloud strategy with a secure platform purpose-built for the financial services industry allows Discover to deliver differentiated new experiences.”

Discover plans to migrate and modernize its current systems and applications to an open and flexible hybrid cloud architecture. Red Hat OpenShift will help Discover leverage key capabilities such as security, automation and multicloud service integration to reduce operational costs, deliver better outcomes across business processes, enable faster application deployments, and bring agility with enhanced security and resilience.

“As we accelerate our digital transition journey as a leading direct bank and payments company, it is critical that we have technology solutions in place that help us improve the customer experience,” said Amir Arooni, Executive Vice President and Chief Information Officer at Discover. “Working with IBM will allow us to automate, react and deliver solutions more quickly, ultimately driving down costs and helping our customers.”

IBM Consulting also will collaborate with Discover’s teams to utilize IBM Garage and agile techniques to modernize existing applications and co-create new solutions to help Discover derive greater business and technical benefits.

Discover will use Red Hat Ansible Automation Platform for hybrid cloud automation and Red Hat Advanced Cluster Management for Kubernetes (ACM) to achieve end-to-end management visibility and control of its cluster and application lifecycle across its hybrid cloud architecture.

IBM Files Lawsuit to Protect its Intellectual Property Rights

Accuses LzLabs of infringing IBM patents and misappropriating IBM trade secrets

ARMONK, N.Y., March 21, 2022 — IBM today filed suit against LzLabs, saying the Switzerland-based company has violated IBM’s intellectual property rights by repeatedly infringing upon company patents protecting various aspects of IBM’s high-performance mainframe systems, a core technology that clients depend on for their most important workloads.

In the legal action filed in U.S. District Court in Waco, Texas, IBM asserts that LzLabs has also deliberately misappropriated IBM trade secrets by reverse engineering, reverse compiling and translating IBM software. IBM also alleges that LzLabs has made false and misleading claims about LzLabs’ products.

IBM is seeking relief that includes an injunction against LzLabs to prevent further unlawful use of IBM’s intellectual property and trade secrets.

LzLabs is owned and run by some of the same individuals who previously owned and ran Neon Enterprise Software, LLC of Austin, Texas. Neon previously attempted to free ride on IBM’s mainframe business, and prior litigation between IBM and Neon ended with a U.S. District Court permanently barring Neon and certain of its key employees from, among other things, reverse engineering, reverse compiling and translating certain IBM software, and also from continuing to distribute certain Neon software products.

IBM has made significant investment in research and development in this critical technology field and will aggressively defend its investments and resulting patents against those who violate them, as LzLabs has now repeatedly done.

Patents infringed by LzLabs include:

  • Two that describe methods embodied in IBM mainframe instructions that LzLabs must emulate with or translate into Intel x86 instructions,
  • Two that describe methods of increasing emulation/translation efficiency that LzLabs must implement if it is to achieve optimized performance objectives; and
  • One that describes a method related to the translation of IBM mainframe applications wherein IBM programs called by those applications are identified and an x86 substituted for each.