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How AI and robotics are transforming warehouse operations

Warehousing is a fundamental aspect of supply chain management, bridging the gap between the production of goods and the distribution of them. Some of the key challenges in warehousing include inaccurate inventory information, inefficient space optimisation, improper labour management and difficulty adapting to seasonal demands. This is where warehouse automation comes in - which refers to the use of advanced technologies and systems to streamline and optimise various tasks within a warehouse setting. These technologies, such as robots, AI tools and automated conveyor systems, enhance efficiency, accuracy, and speed in tasks like inventory management, picking, packing, and shipping.

By Andrei Danescu, CEO and co-founder

Dexory

How AI and robotics are transforming warehouse operations

According to Gartner, 60% of leaders say their supply chains have never been designed for resiliency. Additionally, last year, the global research and advisory firm IHL Group estimated the combined cost of stock mismanagement at $1.77 trillion. Streamlined functionality and processes that optimise operations are a necessity. By automating processes, businesses can improve productivity and customer satisfaction, making their operations more efficient and competitive in the market.

WHAT IS WAREHOUSE AUTOMATION?

Warehouse automation encompasses a wide range of technologies, from basic mechanisation like conveyor belts and barcode scanning to sophisticated AI-driven solutions. These advancements aim to improve efficiency and reduce operational costs by streamlining routine tasks, handling heavyduty processes with advanced machinery and robotics, focusing on specific warehouse processes like order picking, optimising

workflows through process automation such as inventory management, and employing machine learning and predictive analytics in AI automation to make data-driven decisions.

ROBOTICS AND DIGITAL TWIN TECHNOLOGIES

Historically, the global warehouse industry relied on irregular data snapshots of data that is usually out of date as soon as it has been taken. However, with the number of changes that have impacted the supply chain and warehousing, there is now a need for businesses to gather real-time data to better understand the movement of goods in and out and to detect any issues within the warehouse. This has been made possible by advancements in autonomous robotic technologies that come with state-of-the-art AI technologies to provide further enhancements to efficiency and productivity.

Technologies that combine robotics, AI and digital twin technologies provide the logistics industry with realtime warehouse insights. These digital twin platforms provide a digital replica of the physical information, providing real-time visibility over stock and forecast trends to better plan for the future. In addition, digital twins allow warehouse managers to test different scenarios in the digital environment before moving to physical implementation.

By combining robotics and digital twins, warehouse and logistics operators can measure, count, track and locate goods throughout warehouses without interrupting workflows.

HOW AI AND ROBOTICS CAN WORK TOGETHER

A recent Gartner study shows that nearly 80% of supply chain respondents plan to pilot or implement Generative AI capabilities in 2024 using an average of 6% of the overall supply chain technology and transformation budget.

AI is the next frontier that’s offering enhanced capabilities. For example, it can identify inefficiencies within the warehouse, allowing for operational optimisation and reducing the risks associated with changes in a company’s supply chain. Decision-making is easier with AI as it can process vast amounts of data and provide timely and valuable insights, saving costs for businesses.

Additionally, AI can be used to automate routine tasks such as stock ordering and counting, not only saving time but minimising the risk of human error.

By implementing AI-powered features into digital twin platforms, businesses can improve warehouse performance and efficiency and save thousands of hours annually. Combining AI with state-of-the-art image analysis and machine learning models will automatically detect and address issues like damaged stock, fallen inventory and rack infrastructure damage to enhance compliance.

With geopolitical shifts, changes in market demand and labour shortages creating ripple effects throughout supply chains, it’s more important than ever to be agile and adaptable - AI offers this.

ADVANTAGES OF LEVERAGING AI AND ROBOTICS IN WAREHOUSING

These technologies power resilience and boost the speed, reliability, flexibility and productivity of warehouse and distribution operations.

Warehouse space is always at a premium, especially with the amount of online transactions. Yet, often, there’s unused space within warehouses or the space that is utilised is not optimised for efficiency. Using AI and autonomous robots to monitor the warehouse’s physical environment can provide accurate insights into space and pallet availability. This enables warehouse managers to forecast demand and address any operational inefficiencies.

Introducing autonomous mobile robots significantly boosts efficiency. Industry leading robots can scan up to 10,000 locations per hour, saving considerable time. Daily scanning of the entire warehouse provides managers with real-time insights, offering a more precise overview of ongoing activities.

The supply chain industry experiences peak seasons, marked by holiday spikes and other demand surges. Automation can aid in managing these fluctuations by optimising product placement and grouping items based on sales data. Automating data collection enhances efficiency and provides valuable insights for better preparation during peak seasons.

After peak seasons, warehouses can analyse automated data to understand space utilisation and fluctuations better, improving preparation for the next peak season.

The adoption of AI and robotics in warehouse operations offers solutions to age-old challenges. Through streamlining processes and enhancing productivity, these technologies not only drive operational excellence but also bolster resilience in the face of dynamic market conditions. By leveraging AI-driven insights and robotics, businesses can make informed decisions, automate routine tasks, and optimise workflows, ultimately delivering superior customer satisfaction while minimising costs. Looking forward, the continued integration of AI and robotics promises a future where warehouse operations are smarter, more efficient, and more responsive to the demands of the modern supply chain landscape.

Navigating the unknown: How flexible warehouse automation helps organisations prepare for the unexpected

Consumer demand for products remained unpredictable throughout last year, plaguing the market with uncertainty. October 2023, for example, saw high streets slump to a 2.7% drop in sales volumes year on year, with Black Friday also quieter than in 2022. This defied some predictions, which suggested Black Friday 2023 could be the busiest ever.

By Simon Jones UK Sales Executive

Exotec

How flexible warehouse automation helps organisations prepare for the unexpected

Navigating the unknown in 2023 has left unanswered questions surrounding how to manage workforces, warehouse space and demand, making planning for 2024 and beyond a considerable headache for many companies. Logistics will play a key role in ensuring organisations are prepared for every outcome, with automated warehouse systems presenting an opportunity to establish greater resilience through their flexibility and consistent performance.

THE LIMITS OF TRADITIONAL AUTOMATION

Automation in the warehouse has existed for decades, with the first automated storage and retrieval system (ASRS) being deployed by German firm Demag in 1962. Since then, ASRS technology has undergone continuous development with the latest systems using robots to achieve high levels of flexibility, scalability and productivity, unfeasible for traditional fixed systems.

For example, the throughput capacity of traditional automation,

such as shuttles and mini-loads must be fixed at the maximum forecast requirement when the system is installed. This means that for 90% of the year and for the first few years at least, the system will be operating at well below capacity. Many retailers have realised that more flexible systems allow them to install only what they need for the foreseeable future, because they can add temporary or permanent increases in capacity as and when needed in the future.

This is a far more efficient use of capital expenditure and de-risks the investment significantly.

Since much of traditional automation was originally designed for store replenishment, shortfalls in its ability to meet omnichannel delivery requirements have become apparent. The growth of e-commerce has led to requirements such as sameday, even same hour, picking and shipping, creating a need for speed which did not exist in the days of purely in-store retail when the order to delivery cycle was a minimum of three days.

With companies now operating e-commerce and in-store channels at the same time, expecting automation systems to deliver in both areas simultaneously is something only the most flexible systems can deliver. However, the benefits of both operations residing in a single system are huge in terms of space saving, inventory reduction and elimination of duplication.

HOW WAREHOUSE TECHNOLOGY IS EVOLVING

The good news is that as needs evolve and pressure mounts for rapid order fulfilment, automation in the warehouse is increasing in sophistication. The advanced software in modern systems, for example, minimises order cycle times and ensures orders are ready for packing in a matter of minutes.

These systems can safely scale racking up to 12 metres in height, meaning organisations can increase the storage density of their warehouses and address the problem of lack of space. The throughput capacity can also be increased rapidly with the addition

of rental robots during peaks in demand so organisations can deal with uncertainty in a cost-effective manner.

Modern systems can also operate with no single point of failure: if one robot fails, the rest can dynamically adjust their workload, ensuring consistently seamless operations all year.

The end result is better efficiency, accuracy and throughput capacity, both inside and outside peak periods.

SUPPORTING HUMANS, NOT REPLACING THEM

There remains scepticism that robots will take jobs from humans in the warehouse. However, their presence actually presents more advantages than disadvantages for human staff.

ASRS robots, for example, help automate repetitive tasks, can handle heavy goods, and reduce the distance that staff need to walk around a warehouse during a shift. This creates a less strenuous, more rewarding work environment for

staff and makes the role accessible to a wider demographic. As a result, human staff can focus on more technical and higher-value tasks in a safer environment.

On a larger scale, the presence of robotics benefits organisations from a recruitment perspective. When a peak period hits – whether expected or unexpected – pressure mounts on organisations to hire staff en masse, which can raise concerns surrounding labour procurement. The implementation of robotics balances much of this uncertainty. Businesses can forecast with greater confidence as they know they can scale their capabilities up or down at short notice, reducing the pressure to mass hire temporary staff in a tight labour market.

DEMYSTIFYING DEMAND

The year ahead holds many unknowns for warehouse operators, but the means to deal with surges and dips in demand are very much there. Businesses should evaluate where they are in terms of warehouse automation

and consider how advanced robotics can make them a slicker and more adaptable organisation. If companies implement flexible warehouse automation now, they will be in a better position to serve the needs of both their customers and their employees in the long term. manufacturers will pay particular attention to the elements of the structure that are most prone to failure, such as welds: for instance, advanced optical inspection techniques should guarantee that welds exceed high minimum thresholds for size and integrity, ensuring that the pack’s electrical connections remain sound even when exposed to the extremes of shock or vibration specified in the application.

Some manufacturers will follow the practice that Alexander Battery Technologies has instituted, of inviting customers to inspect its manufacturing facilities in detail. Modern ERP (enterprise resource planning) software systems may also be used to enable the customer to perform unit-by-unit monitoring and inspection of production output of their packs.

High-quality design and production also support rapid, first-time-right validation and certification of battery packs according to the high standards set in sectors such as the automotive industry.

The battery power supply can be as reliable as any other component of a mobile robot: the guidance above shows how careful attention to cell and battery specification, design and production, and the choice of a dependable pack manufacturer, can ensure reliable and predictable performance for the life of the robot.

Addressing Regulatory Compliance in Government-Owned, Single-Use Devices

Government-owned devices can either be employee- or customer-facing. Government workers use employee devices to monitor and report on their tasks. Meanwhile, the customer-facing devices give citizens a self-service option when using government facilities.

The extensive availability of single-use devices in many government facilities is a testament to their effectiveness. Of course, the challenge is selecting the right device, brand, and manufacturers to entrust with the work. For this, regulatory agencies set strict standards and requirements that each vendor or manufacturer must fully accept. Only by passing regulatory compliance can their products be allowed to work for the government.

By Nadav Avni Chief Marketing Officer

Addressing Regulatory Compliance in Government-Owned, Single-Use Devices

WHY GOVERNMENT-OWNED, SINGLE-USE DEVICES NEED PROPER SECURITY

Like any other business entity, the government wants to get the most from its single-use device investments. Each device should pass quality assurance tests and must be safe to operate right out of the box.

As smart devices, these units are likely to handle private data during the course of work. Bad actors who snoop into government devices to try to steal data shouldn’t have an easy time breaking in. Of course, most public-facing government devices don’t store sensitive information. However, enterprising cybercriminals use these devices as a way to access the internal devices that hold confidential data.

At the same time, access to devices should remain limited to authorised users. Citizens using self-service kiosks have no business checking a device’s system settings or browsing files.

The burden to keep devices intact remains on the administrator’s side. IT security teams should make sure that customers can only interact with authorised programs. And, more importantly, that they can only input data and have limited access to their information.

MANAGING REGULATORY COMPLIANCE IN GOVERNMENT DEVICES

Due to the continuously evolving nature of information technology, government oversight continues to play catch up to these machines. However, governing agencies already issued rules concerning the fair use, safety, and security of single-use devices that emphasise keeping data private and secure. Among the common regulatory guidelines include good manufacturing practice certification, quality assurance, and environmental, emission, and waste disposal standards.

Chief among the many requirements for single-use devices is the inclusion of reasonable security features. At face value, this regulatory compliance should

go to manufacturers instead of end-users. Vendors should have the burden of complying with minimum security requirements and providing educational materials so customers become aware of security risks.

More importantly, suppliers should have customer service on standby to provide product support and assistance. Considering the variety of single-use devices in circulation today, many security issues remain unresolved for the most part.

CREATING A MOBILE SECURITY STRATEGY FOR BETTER REGULATORY COMPLIANCE

One proactive mobile security strategy that helps with regulatory compliance is the use of an effective mobile device management (MDM) solution. This platform oversees all connected devices to the network and takes charge to manage, maintain, and secure them all. Instead of relying on the ground team to work on each device in their area, the device manager can keep devices in optimal

working condition and compliant with all government requirements.

MANAGEMENT

Managing single-use devices means assigning access credentials and restricting access depending on permission levels. Not all device operators need access to certain areas. For instance:

– End-users can only access the front-facing apps and view or submit data.

– Operators can boot devices and prepare them for use by launching official apps and loading the database.

– Managers, executives, and data analysts can look at generated reports and usage statistics to gather insights.

– IT admins and service team members can access the system, install or delete apps, and perform maintenance services, but they can’t look at or copy private data.

MAINTENANCE

Maintenance ensures that the device runs on updated software and firmware. Most vulnerability issues stem from the use of outdated software that still has security holes. Keeping the operating system and all applications updated patches these gaps and ensures everything is in working order. In addition, maintenance can include connecting to individual devices via remote access to make spot repairs, roll back installed versions, or adjust individual settings.

SECURITY

Securing devices is of paramount importance, even if doesn’t involve regulatory compliance. Given the number of customers the typical government agency handles in a day, some enterprising individuals might try to hack into the system or steal the device outright.

Implementing security measures enables the administrator to connect remotely to a lost or stolen unit and shut it down or disable

it. This prevents further access to the device until security teams can retrieve or recover the unit. If there’s a danger that a device might be compromised, admins can remotely wipe all data off the device and render it useless to thieves.

ENFORCING ORGANISATIONWIDE POLICIES FOR SINGLEUSE DEVICES

A reliable mobile device management platform can help enforce organisation-wide policies that govern the use of single-use devices.

The administration of access levels is one way to ensure that only authorised users can operate government devices. Implementing directives such as regular password maintenance or renewing expired authorisations also helps keep the entire system secure.

What’s more, instead of requiring operators to physically turn in devices for updating, the device manager can assume full access and perform remote over-the-air

maintenance. This makes it easier for the entire agency to keep its hardware operating at optimum levels. It also minimises downtime due to servicing.

MAINTAIN REGULATORY COMPLIANCE WITH MDM SOFTWARE

Regulatory compliance for singleuse devices is easier to accomplish if you have a competent mobile device management solution on hand. Instead of deploying IT service teams in the field to manually inspect and update devices, administrators can simply connect remotely and perform maintenance and quality assurance tasks.

As government agencies plan to invest in single-use devices to boost operational efficiency, they should also seriously consider a reputable device manager. This small addition to the budget can greatly improve device maintenance, reduce service calls and field visits, and secure devices from external threats.

More importantly, the right MDM software ensures better regulatory compliance through efficient device management.

Riverfield Develops the World’s First Surgical Robot with Force Sensing

Surgical robots have been on the rise in recent years, benefitting patients with smaller incisions and quicker postoperative recovery, among other advantages.

By Evelyn Hochholzer, Sr. Strategic Marketing Manager, Wind River

Riverfield Develops the World’s First Surgical Robot with Force Sensing

In Japan, surgical robots began clinical trials in 2001. The new anti-shake function and jointed surgical instruments allowed for precise manipulation and is forecasted to increase in popularity.

RIVERFIELD Inc., is a venture company that conducts research, development, and sales of medical devices including surgical-support robots. It was established in 2014 to commercialize the results of research conducted at the Tokyo Institute of Technology and Tokyo Medical and Dental University. Riverfield developed the Saroa Surgical System, the world’s first minimally invasive surgical robot that successfully reproduces sense of force, or kinesthetic sensation. It received manufacturing and marketing approval in Japan in May 2023. In July of the same year, the robot performed its first surgery.

MARKET BACKGROUND

The da Vinci platform developed by Intuitive Surgical in the U.S. was previously the most widely

used surgical robot in Japan. However, three major issues were identified: lack of sense of force, or kinesthetic perception; arm interference; and cost.

Existing surgical robots do not provide kinesthetic sensation during surgery, which medical professionals felt could hamper precision. In addition, the long and large arms often touched each other and bumped into doctors during surgery. Finally, surgical robots were extremely large and expensive. They weighed nearly one ton, requiring floor reinforcement at the installation site. They were too large to fit in elevators and through doors. The standard Japanese power supply of 100V would not supply the robots’ required 200V, requiring modifications to the operating room’s power distribution panel. Some hospitals gave up on the idea of introducing these systems.

DEVELOPMENT CHALLENGES

Since a surgical robot reaches inside the patient’s body, it must be plated to withstand preoperative cleaning. Interference from

electrocautery and other devices are also considerations. Riverfield has responded to these challenges by reproducing force feedback through air pressure. The precision control technology of the pneumatic system provides kinesthetic sense essential for precise surgical procedures, such as gripping, grasping, and pulling. Saroa allows the doctors operating the robot to feel as though they are operating directly with their own hands, which is expected to enhance the precision of surgery.

APPROACH

A significant advantage of Riverfield’s pneumatic system is that it can provide kinesthetic feedback without using a force sensor. While this makes these systems less expensive and more suitable for compact and lightweight applications, it also presents a challenge.

Pneumatic systems have many components and are complex and difficult to control. Furthermore, although earlier versions could perform surgery, there was still

room for improvement, compared to electric systems, in terms of high-speed, precise drive. To achieve advanced control, Saroa selected VxWorks as the best real-time operating system to meet Riverfield’s requirements of fast response performance, high reliability, and safety.

“With VxWorks, we can do hardware real-time processing at the one-millisecond level. This allows us to control pneumatic forces and other applications at high speed and with precision. In addition, because this is the medical field, high reliability, safety, and security are important. VxWorks has an extensive track record in the field of medical devices that require control, such as robots, MRIs, and endoscopes, so we feel very comfortable using it as a real-time OS for medical equipment,” says Masao Kanazawa, manager of the Software Design Department of Riverfield’s Design and Development Division.

RESULTS

Riverfield’s Saroa surgical robot is most notable for its force sensing, but it also provides other advantages.

“Saroa weighs just over half the weight of existing robots and is about the height of a person. Its lightweight and space-saving features allow easy movement between operating rooms and within the facility, and more flexible operation,” says Riverfield CEO Kotaro Tadano. He also notes that Saroa was developed with a goal of reducing cost compared to other systems.

Saroa uses one less arm than competing products and keeps the monitor and endoscope separate. This makes the device less expensive and more compact and lightweight. “It also makes it easier to work with assistants and prevents arm interference,” notes Kanazawa. Hospitals can use the system with their existing monitors.

With the expiration of the da Vinci solution’s major patents, the market is now more accessible for Riverfield, which will continue to improve Saroa and is considering its next generation of surgical robots. The company plans to expand into Asia, Europe, and the United States. And because surgical robots in Japan are currently found only in large university hospitals, Riverfield also hopes to expand use of the Saroa surgical robot into smaller and rural hospitals as well.

Cheltenham MSP is first official local cyber advisor

ReformIT, a Managed IT Service and Security provider (MSP) based in the UK’s cyber-capital, Cheltenham, has become the first MSP in the local area to be accredited as both a Cyber Advisor and a Cyber Essentials Certification Body. The Cyber Advisor scheme was launched by the Government’s official National Cyber Security Centre (NCSC) and the IASME Consortium, aimed at helping businesses to protect themselves from increasing cyber threats.

By Neil Smith, Managing Director, ReformIT

Cheltenham MSP is first official local cyber advisor

This new accreditation will place the firm among an elite group of Cyber Advisors and Cyber Essentials Certification Bodies across the UK, giving them the power to assess and certify businesses as Cyber Essentials and Cyber Essentials Plus compliant, as well as helping them to achieve that status if required.

Initially developed for IT products and services suppliers to the central UK government, the Cyber Essentials and Cyber Essentials Plus certification demonstrates that an organisation has an essential level of cyber protection in place. NCSC approved Cyber Advisors provide small and medium-sized organisations across a range of industries with reliable and costeffective cyber security analysis, advice and practical support, focusing on the key areas of the Cyber Essentials criteria.

Prominent cyber attacks in the region have spiked in recent years, with businesses, schools and even the local council becoming victims. Cheltenham’s own Pates Grammar School was one of 14 targeted

by Vice Society – a ransomware gang involved in attacks in both the UK and USA; meanwhile, Gloucester City Council was held to ransom by Russian criminals in 2021, costing them £1.14 million and causing 18 months’ worth of disruption.

According to the Government’s Cyber Breaches Survey 2024, 18% more businesses across the UK have recalled a breach or attack in the last 12 months compared to findings the year before, with phishing remaining the top attack vector. Despite the growing threat landscape, just three in ten businesses have undertaken cyber security risk assessments in the last year with only around a third deploying security monitoring tools – the same number as the previous year.

On receiving their accreditation, Neil Smith, Managing Director at ReformIT, said: “It’s a real honour to have ReformIT recognised as both a Cyber Essentials Certification Body and a Cyber Advisor. This means that we are the only firm locally to be able to offer complete end-to-end

government approved security assessment and certification under one roof; from a cyber security gap analysis, hands-on implementation, to NCSC Cyber Essentials certification.”

Smith added: “Previously, Cyber Essentials certification tended to be more for the very large and complex organisations, often from the finance or defence sector but now with digital transformation top of every company’s agenda, basic cyber security is critical for any sized business or industry. The security of all companies contributes to the protection of UK national security while being Cyber Essentials certified opens doors to government and public sector contracts that previously could have been out of reach.

“Cyber security is a tricky thing to get right if you don’t already know how or have a trusted advisor on your side; the fact of the matter is that nobody is off limits when it comes to organised cyber-crime, whether you are a small business or a larger enterprise. As an MSP, we get under the bonnet of a business and its IT infrastructure;

conducting an MOT of sorts to ensure that the wheels keep turning without any nasty surprises along the way.”

ABOUT REFORMIT

ReformIT is a leading Managed IT Service and Security provider based in Cheltenham. With over 25 years of experience, the service provider is trusted by businesses across the UK to assist with everything from cyber security and cloud technologies to improving broadband speed and ongoing support.

Initially the solo project of Managing Director Neil Smith, the business was started in 1998 and now boasts a growing team of over 20 staff with more than 250 years’ collective experience assisting small to medium sized businesses with their IT solutions. In addition to this, ReformIT works with larger enterprises who may have an in-house IT department, co-managing their IT systems and adding an extra layer of support.

ReformIT is as revolutionary as the name suggests. Whether it is

Windows or Apple (or both!), the dedicated team are on hand to provide complete technology peace of mind.

Neil Smith, Managing Director of ReformIT, is passionate about IT Security and Support. He has over 26 years of experience in the IT industry – 24 of them running his own IT company. He started working out of a bedroom on my own but now owns a thriving small business based in Cheltenham.

ReformIT is a Managed IT Service Provider, essentially providing an out-sourced IT department to small and medium sized businesses. It is a Microsoft Silver Partner, Cloud Service Provider and Small Business Specialist and can provide everything from a quick bit of phone support to complete business IT solutions with all the required on-going services and support.

ReformIT has qualified engineers experienced in both Apple and Microsoft technologies and specialise in Microsoft 365 solutions on all hardware platforms. The team can support the vast majority of small business

IT requirements and has a goal to continue to grow the business into one of Gloucestershire’s best IT companies while still retaining the personal, friendly and professional service it is well known for.

How we’re modernising BT’s UK Portfolio Businesses

Our new partnership with media & entertainment group Global comes a year since BT’s former Enterprise and Global divisions came together to create one B2B unit connecting customers in the UK and internationally. Mandates that organisations must reach net-zero by 2050, so it should be no surprise that there is not only consumer and supplier pressure, but now also the legal imperative to increase carbon awareness.

By Faisal R Mahomed, Director,

How we’re modernising BT’s UK Portfolio Businesses

As a group of standalone businesses that consume BT’s core assets and serve diverse industries, our UK Portfolio Businesses are an important part of BT – from the Media & Broadcast services that underpin much of the UK’s digital content to our directories businesses that underpin our critical 999 service and credit reference agencies. Many of these businesses have such a rich history behind them, becoming part of the fabric of society, and will still, play a crucial role in years to come. So, how are we modernising and future proofing them?

The last years have been a journey of transformation and digitisation alongside returning these business units to growth. When taking on these businesses, it was clear from talking to customers, the public and various stakeholders that they needed to change: to modernise and become more sustainable. There were letters from children about why we were still distributing millions of printed phone books every year, enquiries from customers and stakeholders about payphones, and how

Freeview could be future proofed for the next generation of content. And these are just a few examples.

UPGRADING PAYPHONES FOR A NEW ERA

Nowhere is the move to a digitised society more pronounced than the evolution from the traditional phone box to our innovative digital street units. Payphone usage has dropped massively since the late 1990s/2000s, with devices and smart phones replacing not only communication access, but the central community points that the payphones once stood for.

Our recent announcement with Global is a clear proof point of our strategy at BT, to double down on what we’re best at – connectivity – and partner where others are better. We’re the experts when it comes to connectivity, but we’re not a leader in outdoor advertising or building hubs – so our partnership with Global makes perfect sense.

The agreement will see Global continue to market and sell advertising on BT’s c1,000

existing Street Hubs, and upgrade them as they evolve. And they’ll also convert up to 2,000 conventional BT payphones and kiosks into brand new Street Hubs. It means we can concentrate on investing in new networks and connectivity, with many hubs hosting small cells to boost mobile coverage. They will also serve as a key location on high streets for the local community, providing free calls and WiFi as well as access to emergency services through a red button, and give local councils another outlet to reach those who live nearby and pass by on a daily basis.

A REVAMPED DIRECTORY SERVICES UNIT

Last month also saw the last copies of the printed phone book going out to millions of households across the UK – one of the most recognisable outputs of our directory services unit. A poignant moment in many respects, as the public looked back with fondness on a resource that served the UK fantastically for more than a century. But for most people today, looking up a phone number

is at the click of a button or a spoken command. This change is reflected in the dwindling number of listings in the phone book and the subsequent size of its final edition. A PDF version of the book will be available via our website going forward for people to browse. And BT also provide printed copies on request for the small number of people who may still need it.

The core directory service that underpins the Phone Book has been brought in-house and will be refreshed. It will continue to be the source of vital information to our emergency services and information to credit reference agencies, which is crucial to the economic growth of the UK.

ACCELERATING TV TO THE CLOUD

Our Media & Broadcast unit is one of our principle vehicles for innovation and change. Last year, we announced a collaboration with Telstra to improve the strength of our Global Media Network (GMN), pooling network infrastructure and localised

expertise to create an alliance that’s more than the sum of its parts; again allowing us to focus our investment on our core UK business.

The broadcast industry is vitally important for us as we help customers streamline their operations by moving to the cloud. We’re already working with D3&4 and with military charity and broadcaster BFBS (British Forces Broadcasting Service) to harness the benefits of this technology and future-proof services. Multicloud networking is already the backbone on BT’s strategy with the arrival of Global Fabric, and will remain a major focus for us over the next few years in the broadcast media landscape, as we support our customers use of cloud to drive more flexibility and innovation into their workflows.

FRICTIONLESS TRADE

Over 30 years ago, BT, on behalf of the UK Government, turned Customs declarations electronic: replacing printed telex and faxed paper documents with digital

messages that has facilitated trade ever since.

With BT Rune, our CCS (Cargo Community Systems) business is expanding that digitisation further along global supply chains. It now captures information at source and reuses the data all along the cargo journey to satisfy each country’s border regulations – all via an innovative platform.

With major produce importers starting to sign up, this innovation will enable UK Customs declarations to not only be digitised, but fully automated too. This will be a massive step forward as BT helps streamline and simplify processes for traders, demonstrating that our business customers are better on BT.

MORE TO COME

I’ve highlighted just a few examples of the rapid transformation we’re undertaking to deliver real value for customers and our wider BT Group stakeholders. BT’s UK Portfolio businesses have long played a significant role in the

country underpinning many important services for businesses and communities. In this everexpanding digital environment, the uniting factor among all our customers is their demand for secure, always-on connectivity delivering our purpose to connect for good.

Our teams have been proud to make a real difference, and there’s an exciting opportunity ahead for all these businesses and the communities they serve. BT will continue to be there to support them in a better-connected future, every step of the way.

From Shadow IT to Shadow AI

The first law for AI was approved recently and gives manufacturers of AI applications between six months and three years to adapt to the new rules. Anyone who wants to utilise AI, especially in sensitive areas, will have to strictly control the AI data and its quality and create transparency – classic core disciplines from data management.

By Mark Molyneux, CTO, EMEA at Cohesity

From Shadow IT to Shadow AI

The EU has done pioneering work and put a legal framework around what is currently the most dynamic and important branch of the data industry with the AI Act, just as it did with GDPR in April 2016, and with Digital Operational Resilience in January 2025. And many of the new tasks from the AI Act will be familiar to data protection officers and every compliance officer involved in GDPR and DORA.

The law sets a definition for AI and defines four risk levels: minimal, limited, high and unacceptable. AI applications that companies want to use in aspects of healthcare, education and critical infrastructure fall into the highest security category of “high risk”. Those that fall into the “unacceptable” category will be banned, for example if considered a clear threat to the safety, livelihoods and rights of people.

AI systems must, by definition, be trustworthy, secure, transparent, accurate and accountable.

Operators must carry out risk assessments, use high-quality data and document their technical and ethical decisions. They must

also record how their systems are performing and inform users about the nature and purpose of their systems. In addition, AI systems should be supervised by humans to minimise risk, and to enable interventions. They must be highly robust and achieve a high level of cybersecurity.

The potential of generative AI has also created a real gold rush that no one will want to miss. This is highlighted in a study by Censuswide on behalf of Cohesity, a global provider of AI-supported data management and security. 86 percent of the 903 companies surveyed are already using generative AI technologies.

Mark Molyneux, EMEA CTO from Cohesity, explains the challenges this development brings with it and why, despite all the enthusiasm, companies should not repeat old mistakes from the early cloud era.

The path for users to AI is very short; entry is gentle, easy and often free, and that has big consequences that should be familiar to companies from the early phase of the cloud. That’s

why it’s particularly important to pay attention to the following aspects right now:

AVOID LOSS OF CONTROL

In the past, public cloud services have sparked a gold rush, with employees uploading company data to external services with just a few clicks. IT had temporarily lost control of company data leading to it accepting risks in terms of protection and compliance. The birth of shadow IT.

Respondents now expect something similar with AI, as the survey shows. Compliance and data protection risks are cited as the biggest concerns by 34 and 31 percent respectively. 30 percent of company representatives fear that the AI could also spit out inaccurate or false results. After all, most users do not yet know how to optimally interact with the AI engines. And last but not least, the generative AI solutions are still new and not all of them are yet fully developed.

The media often reports on companies that have had this experience. In April 2023, engineers at Samsung uploaded company confidentials to ChatGPT, making them the learning material of a global AI – the worst case from a compliance and intellectual property perspective.

Since the innovation cycles in AI are extremely short, the range of new approaches, concepts and solutions is exploding. Security and IT teams find it extremely difficult to keep up with this pace and put the respective offers through their paces. Often they are not even involved because, like the cloud, a business unit has long been using a service – after shadow IT, shadow AI is now emerging and with it an enormous loss of control.

MAKE PEOPLE AWARE OF DANGERS

At the same time, new forms of possible misuse of AI are becoming known. Researchers at Cornell University in the USA and the Technion Institute in Israel have

developed Morris II, a computer worm that spreads autonomously in the ecosystem of public AI assistants. The researchers managed to teach the worm algorithms to bypass the security measures of three prominent AI models: Gemini Pro from Google, GPT 4.0 from OpenAI and LLaVA. The worm also managed to extract useful data such as names, phone numbers and credit card details.

The researchers shared their results with operators so that the gaps can be closed and security measures can be improved. But here a new open flank is clearly emerging on the cyber battlefield where hackers and providers have been fighting each other with malware, spam and ransomware for decades.

SPEED WITHOUT BEING HASTY

IT teams will not be able to turn back the clock and keep AI out of corporate networks. Therefore, bans are usually not an appropriate approach. IT cannot and should not be tempted to rush and make quick decisions, but rather regain control over its data

and responsibly govern the AI.

This allows IT teams to accurately assess the risk and rule out possible external data sharing. The AI is self-contained and can be introduced in a controlled manner. IT teams can also be very selective about which internal systems and data sources the AI modules actively examine. You can start with a small cluster and introduce AI in a highly controlled manner.

AI models that have already been introduced by third parties can be tamed by specifying exactly which data these models are allowed to access. A decisive advantage for slowing down the uncontrolled dynamics of AI, because data flows can be precisely controlled, useful information protected and legal requirements adhered to.

Fixing the Public Sector IT Debacle

Public sector IT services are no longer fit for purpose. Constant security breaches. Unacceptable downtime. Endemic over-spending. Delays in vital service innovation that would reduce costs and improve citizen experience.

By Mark Grindey, CEO, Zeus Cloud

Fixing the Public Sector IT Debacle

While the UK’s public sector is on the front line of a global escalation in cyberattacks, the number of breaches leading to service disruption, data loss and additional costs to rebuild and restore systems are unacceptable and unnecessary. A lack of expertise, insufficient procurement rigour and a herd mentality have led to over-reliance on a handful of vendors, ubiquitous infrastructure models and identical security vulnerabilities that are quickly and easily exploited.

Budgets are adequate. Better, more affordable and secure technologies are mature and proven. As Mark Grindey, CEO, Zeus Cloud, argues, it is the broken tender process that is fundamentally undermining innovation and exposing the public sector to devastating security risk.

BROKEN SYSTEMS

There is no doubt that the UK’s public sector organisations are facing an ever-growing security threat. Alongside public bodies in

every developed country, statesponsored attacks are designed to undermine the delivery of essential services. And the cost to recover from these cyberattacks is devastating, with councils spending millions to recover from ransomware attacks in recent years.

The ever-rising threat level is, however, just one part of the story. While public sector bodies are prime targets due to the level of sensitive data held, the impact of attacking critical infrastructure and the appeal of targeting a highprofile organisation, not every public body is enduring repeated downtime as a result of breaches.

Nor does a single hack automatically affect every part of the organisation, leading to a disruption of vital services for days, even weeks. So, what differentiates those organisations, such as Bexley Council and Bedford Council that have a good cyber security track record, from the rest? And, critically, what is the best way to propagate best practice throughout the public sector to mitigate risk?

BROKEN TENDER PROCESS

The issue is not budget. The public sector may constantly claim a lack of funding but money is not the root cause of inadequate security or inconsistent service delivery. The problem is how that money is spent. Despite attempts to improve the rigour of public sector IT investment, the current tendering process is fuelling misdirected and excessive spend.

In theory, an open tender model should ensure that money is well spent. It should guarantee the service is delivered by the best provider. In reality, the vast majority of contracts are allocated to the same handful of large organisations. Which would be fine, if the services delivered were top quality, highly secure and fairly priced. They are not. The public sector is routinely charged three times as much as the private sector for equivalent IT deployments. Three times as much.

In addition to this endemic overspending, the reliance on a small number of vendors radically increases the security threat due

to the ubiquity of infrastructure models. When the majority of public sector organisations have relocated to the same public cloud hyperscaler and adopted identical security postures, it is inevitable that a breach at one organisation will be rapidly exploited and repeated in others.

INADEQUATE RIGOUR

The current tender process completely lacks rigour. Given the continued security breaches, why are these vendors not being held to account? Why are they still being awarded new contracts? Indeed, why are they winning the business to rebuild and recover the systems damaged by a security breach that occurred on their watch? When other Managed Services Providers and cloud platforms can offer not only better pricing but a far better security track record. Something is clearly going very wrong in public sector procurement.

The public sector is complicit in this overspending: any vendor attempting to come in and charge a lower (fair) amount is

automatically discounted from the tender process. Why? There are multiple reasons, not least that the public sector has been ‘trained’ by the IT industry to expect these inflated costs, but there is also a reliance on dedicated Procurement Officers who lack essential sector expertise. Why for example, is every single system used by Leicester City Council located on the same public cloud platform? It should be impossible for a system breach to extend and expand across every single part of the organisation yet by failing to understand basic security principles, the council set itself up for expensive failure.

The lack of expertise is a serious concern. Continued reliance on large IT vendors has resulted in many public sector organisations becoming dangerously underskilled. Given the lack of internal knowledge, organisations often turn to incumbent vendors for information to support the tender process, leading inevitably to further price inflation. Furthermore, when a crisis occurs, reliance on a third party, rather than in-house expertise, leads to inevitable

delays that exacerbates problems and results in additional cost to repair and restore systems.

OVERDUE OVERSIGHT

The situation is enormously frustrating for IT vendors with the expertise to deliver lower cost, secure systems. The mis-directed spend has left public sector bodies woefully out of date. Not only are security postures frighteningly old fashioned; but there are unacceptable delays in vital service delivery innovations that would transform the citizen experience and provide operational cost savings.

Given the escalating pressures facing all public sector organisations, change is essential. In-house expertise must be rebuilt to ensure sector experts are involved in the procurement process and pricing expectations must be immediately overhauled: avaricious IT vendors will continue to over charge unless challenged. One option is to appoint an outsourced CTO with broad public and private sector expertise, an individual with the knowledge and

experience to call out the endemic over charging and sanity check the procurement process.

It is also important to move away from the herd mentality. Would, for example, an on-premise private cloud solution be a better option than a public cloud hyperscaler? What is the cost comparison of adding in-house security expertise rather than relying on a third party – factoring in, of course, the value of fast response if a problem occurs. It is telling that the handful of local authorities with a good security track record have not adopted the same big vendor, public cloud approach but applied rigour to the procurement process to achieve a more secure and cost-effective approach. Others could and should learn from these organisations.

CONCLUSION

Good, effective IT systems underpin every aspect of public sector service delivery and, right now, the vast majority are not fit for purpose. It is, therefore, vital to highlight and celebrate the good performers – and challenge

those vendors that continue to overcharge and underperform.

Sharing information between organisations, both to support strategic direction and day to day risk mitigation, is vital to propagate best practice. Critically, by pooling knowledge and expertise, the public sector can begin to regain control over what is, today, a broken model. While the public sector continues to flounder with inadequate security and a lack of knowledge, the IT vendors will continue to win. They need to be held to account and that can only happen if public sector organisations come together to demand more and hold the industry to account.

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