WEBVTT - Trust Needs Proof: Who Really Controls Your AI?

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<v Speaker 1>Hey everyone, it's os Today. We're bringing you a new

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<v Speaker 1>episode of Smart Talks with IBM. This season, Malcolm Gladwell

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<v Speaker 1>talks to leaders using AI and emerging technology to change

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<v Speaker 1>the game.

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<v Speaker 2>In their industries.

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<v Speaker 1>From Heinech and using AI to become the world's best

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<v Speaker 1>connected brewer, to UFC using data to turn chaos into

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<v Speaker 1>clarity for fans and commentators, to Cleveland Clinic using AI

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<v Speaker 1>and quantum computing to accelerate discovery in biomedical research. Smart

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<v Speaker 1>Talks with IBM explores how organizations are applying technology in

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<v Speaker 1>unexpected and transformative ways. New episodes drop every month wherever

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<v Speaker 3>Hi Malcolm Glawell, and you're listening to Smart Talks with IBM.

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<v Speaker 3>Imagine your business depends on a system you didn't build

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<v Speaker 3>and don't fully control. For years, it works perfectly. It's fast, reliable, afordable,

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<v Speaker 3>so over time more and more of your operations rely

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<v Speaker 3>on it. Then one day the terms change. What once

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<v Speaker 3>felt flexible now feels difficult to leave. Moving to another

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<v Speaker 3>provider or bringing those capabilities back under your own control

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<v Speaker 3>could take years, cost millions, and disrupt the business in

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<v Speaker 3>the process. That's the challenge of digital sovereignty. Businesses today

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<v Speaker 3>rely on all sorts of third party systems, cloud platforms,

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<v Speaker 3>data pipelines, AI models, software tools. Most days, these systems

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<v Speaker 3>operate quietly in the background, but when something changes, like

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<v Speaker 3>costs go up or rules shift, organizations are forced to

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<v Speaker 3>confront how much control and flexibility they actually have. This

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<v Speaker 3>is why digital sovereignty has shifted from policy concept to

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<v Speaker 3>board level priority. So to understand the challenge up close,

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<v Speaker 3>I traveled to Paris to Vivtech, Europe's largest technology conference,

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<v Speaker 3>to speak with two people who think about these.

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<v Speaker 4>Questions every day on a Paula a.

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<v Speaker 3>Cis, IBM's senior vice president and chair for IBM EMEA

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<v Speaker 3>and APAC, and Giovanni Daniello, group chief Information Officer at AKSA. Hello, everyone,

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<v Speaker 3>welcome to a live taping of the podcast Smart Talks

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<v Speaker 3>with IBM. I was downstairs in the IBM booths chatting

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<v Speaker 3>with the people who were doing the data Sovereignty presentation,

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<v Speaker 3>and they were discussing the and I said, oh, it

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<v Speaker 3>sounds like you're solving a headache. And the guy I

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<v Speaker 3>was trying to said, that's all we do at IBM.

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<v Speaker 3>We solve headaches and cure headaches, and I want I

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<v Speaker 3>want to start out with the two of you.

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<v Speaker 4>What is the headache in this instance?

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<v Speaker 5>So the topic of sovereignty gained a lot of traction

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<v Speaker 5>over the past few years, in even though I would

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<v Speaker 5>say it really became a buzzword this year. I think

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<v Speaker 5>that this actually started during COVID, when all the supply

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<v Speaker 5>chains became extremely stressed and companies and governments started to

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<v Speaker 5>understand that there were a lot of choke points in

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<v Speaker 5>the world, right, so how can I do more ear

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<v Speaker 5>shore in how can I guarantee that I have autonomy

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<v Speaker 5>of key elements of my supply chain? I think was

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<v Speaker 5>really the wake up call. And then we entered in

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<v Speaker 5>a period of unfortunately many wars happening constraining for example,

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<v Speaker 5>energy security.

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<v Speaker 6>So all these.

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<v Speaker 5>Disruptions in the world led companies and governments to think,

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<v Speaker 5>what is really that I need to consider as critical

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<v Speaker 5>for me, and how do I have better control of

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<v Speaker 5>those capabilities? And now technology being at the core of

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<v Speaker 5>the operations, I think that actually increased the need.

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<v Speaker 6>For companies to focus on sovereignty.

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<v Speaker 5>So that is the headache given that there are so

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<v Speaker 5>many dependencies, given that we're living in a world that

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<v Speaker 5>is so interconnected, how do you get autonomy, how do

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<v Speaker 5>you get back control making sure that you continue to

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<v Speaker 5>operate in a collaborative ecosystem.

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<v Speaker 7>It's a difficulty equilibrium in reality, because we have to

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<v Speaker 7>take all those dimensions into consideration making sure that at

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<v Speaker 7>the same time we can continue to access innovation. And

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<v Speaker 7>that's where the paradigm is is really very, very complicated

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<v Speaker 7>to solve. So the headache we have in AXA and

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<v Speaker 7>then probably many large organizations in the in the world

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<v Speaker 7>is exactly the topic in Europe at least it's it's

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<v Speaker 7>about sovereignty exactly in the terms you are talking about,

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<v Speaker 7>and that's becoming a topic that is very there is

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<v Speaker 7>a there's a lot of visibility very in the agenda

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<v Speaker 7>at very top executive level since probably it started with Coviy,

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<v Speaker 7>I agree.

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<v Speaker 2>But the last two years there's been an acceleration clearly.

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<v Speaker 6>Yeah, and I really have a few data points.

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<v Speaker 5>Today we announced a study through our IBM Institute of

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<v Speaker 5>Business Value where basically we as companies around the world,

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<v Speaker 5>So do you have visibility of your dependencies?

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<v Speaker 3>Right?

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<v Speaker 5>Do you know exactly where are your exposures? And only

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<v Speaker 5>nine percent of the companies said that they have that

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<v Speaker 5>level of visibility, and seventy one percent of the company

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<v Speaker 5>said that if they needed to switch a provider today,

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<v Speaker 5>it would be very.

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<v Speaker 6>Difficult to do so.

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<v Speaker 5>So I think the headache this is actually shows in

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<v Speaker 5>numbers the size of the headache.

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<v Speaker 3>Yeah, you're in the insurance business. Speak to the specifics

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<v Speaker 3>of your own business. Why would this be an issue that?

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<v Speaker 3>Am I right in thinking that this is an issue

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<v Speaker 3>that is a specific and special concern to an insurance.

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<v Speaker 2>No, I don't think so.

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<v Speaker 7>No, No, I don't think so, because in reality, it's

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<v Speaker 7>an issue for organizations using technology data in AI as

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<v Speaker 7>an important driver within the activities they manage.

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<v Speaker 2>Insurance.

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<v Speaker 7>Of course, insurance is about data, it's about people, it's

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<v Speaker 7>about technology, of course, so it's very very central.

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<v Speaker 2>But it's absolutely not limited to insurance.

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<v Speaker 7>Because at the end, if we want to talk a

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<v Speaker 7>little bit more into details, what is sovereignty Because everybody

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<v Speaker 7>talks about sovereignty, but what is it about? And very

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<v Speaker 7>often people believe that once you know where your data

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<v Speaker 7>are located and if you are your open company, if

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<v Speaker 7>you have the certainty that data are located in Europe.

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<v Speaker 7>Many people believe I'm safe, I'm sobeer incompatible. Well it's

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<v Speaker 7>absolutely not enough. So there are models that not only

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<v Speaker 7>we are using an accept that are also very very

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<v Speaker 7>public on the market. Very often will refer to four dimensions.

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<v Speaker 7>Of course, allocation is number one. If you don't know

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<v Speaker 7>where your data are, I mean, you don't know anything.

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<v Speaker 7>But it's not only that, I mean how do you operate?

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<v Speaker 7>Who is operating the system, who is patching, who is

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<v Speaker 7>creating new versions of whatever the feature that becomes available.

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<v Speaker 2>That's the second one. The third one is contracts, legal terms.

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<v Speaker 7>Who is in charge legally speaking of the activities we

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<v Speaker 7>talk about, and and and the last one is the

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<v Speaker 7>technicality itself. Who is really mastering the technical details the

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<v Speaker 7>underlying stack. Is it something that is European, US, China?

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<v Speaker 2>You know? And I mean it's it's it's known by everybody.

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<v Speaker 7>Most of the large European companies and US companies are

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<v Speaker 7>using US technologies. So the difficulty in soeranties to scan

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<v Speaker 7>on a permanent basis the four dimensions. Making sure that it,

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<v Speaker 7>as we're saying, anow that you know exactly what is

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<v Speaker 7>exactly the situation on your business on those four dimensions.

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<v Speaker 3>Give me an example of how a specific example of

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<v Speaker 3>what difference it would make where your data was being held.

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<v Speaker 3>In other words, in what sense our regulatory requirements for example,

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<v Speaker 3>different from one country to another, or from the EU

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<v Speaker 3>to North America Or is there a practical way to

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<v Speaker 3>kind of express those differences.

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<v Speaker 6>Yeah, there are.

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<v Speaker 5>Very clear regulations in many of the countries regarding what

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<v Speaker 5>type of data needs to reside inside the country, right,

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<v Speaker 5>so particularly financial data, health data, those are really really

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<v Speaker 5>controlled and they have to follow those regulatory requirements. So

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<v Speaker 5>the way that we approach that in our architecture in

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<v Speaker 5>our platform is to enforce those regulator regulatory requirements within

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<v Speaker 5>the platform so that this is not just relied from

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<v Speaker 5>a contract toal standpoint, but that you ensure with governance

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<v Speaker 5>tools and with capabilities that the platform is securing that

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<v Speaker 5>data in compliance with those regulatory aspects. And when you

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<v Speaker 5>think about sovereignty, it has to go beyond just the

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<v Speaker 5>regulatory and compliance requirements. It's really understanding your business requirements.

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<v Speaker 6>What are the.

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<v Speaker 5>Applications that are truly mission critical and that you need

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<v Speaker 5>to ensure that have that level of control because also

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<v Speaker 5>controlling everything is not necessarily viable, not from a technical

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<v Speaker 5>standpoint and not from a business case standpoint, right, So

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<v Speaker 5>that is the I think that is the challenge that

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<v Speaker 5>many companies are going right now, is to have the

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<v Speaker 5>visibility of their application mistake, how that matches the business strategy,

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<v Speaker 5>and then making the decisions on what is the level

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<v Speaker 5>of sovereignty that I need to apply.

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<v Speaker 3>Let's say I'm a naive company, I don't pay any

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<v Speaker 3>attention to this, I have operations in any different countries.

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<v Speaker 3>What's the worst case scenario, what's the down What's what

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<v Speaker 3>happens if you don't act kind of prudently around data sovereignty.

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<v Speaker 5>So I think the first aspect is if something happens

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<v Speaker 5>to your infrastructure that is sitting somewhere that you don't

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<v Speaker 5>have visibility, goes out for some reason, a war and

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<v Speaker 5>energy blackout, any other cyber attack in your environment, if

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<v Speaker 5>you don't have a fallback plan, if you don't have

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<v Speaker 5>a way to move that application to operate from another

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<v Speaker 5>place that has the backups the real time data that

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<v Speaker 5>you are accessing to your.

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<v Speaker 6>Pretty much go out of out of operations, right. So

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<v Speaker 6>it's a.

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<v Speaker 5>That's a very important question because I think it brings

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<v Speaker 5>the sovereignty aspect to what I believe is the strategic

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<v Speaker 5>role that it plays. It's about resiliency, it's not about

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<v Speaker 5>necessarily just meeting regulatory requirements, and I think you need

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<v Speaker 5>to do that from a risk management standpoint, and I

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<v Speaker 5>think an insurance company is the best position to do that.

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<v Speaker 5>But it's not just regulations, it's really making sure that

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<v Speaker 5>you have continuous operation twenty four by seven, which is

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<v Speaker 5>pretty much what businesses need to achieve.

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<v Speaker 7>Currrectly in some countries for insurance, for example, but not

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<v Speaker 7>only for insurance. In some countries there are obligations locally,

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<v Speaker 7>for example, to store data in the country. So back

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<v Speaker 7>to your question, there's a limit to how naive you

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<v Speaker 7>can be if you want to develop a business, because

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<v Speaker 7>that's at the heart of getting the authorization to operate

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<v Speaker 7>and to run your business in the countries where you

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<v Speaker 7>would like to. But then once you are over this

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<v Speaker 7>kind of MVP of requirements that are mandatory for you

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<v Speaker 7>to open and operate, then of course, I mean that's

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<v Speaker 7>a good thing that an What you said is completely

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<v Speaker 7>completely relevant.

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<v Speaker 3>How does how does one anticipate these issues changing over time?

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<v Speaker 4>In other words, you said that people are going to

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<v Speaker 4>wake up to the importance of data sovereignty during COVID.

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<v Speaker 3>I'm just curious if we fast forward five years, do

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<v Speaker 3>we imagine that the kind of landscape in which companies

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<v Speaker 3>like you as you and are operating is going to

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<v Speaker 3>get more complex or less complex? What's the what's the

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<v Speaker 3>movement in this?

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<v Speaker 5>I think it's going to become more complex because AI

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<v Speaker 5>is really accelerating all the trends.

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<v Speaker 3>Why I want you to can you expect I want

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<v Speaker 3>you to kind of do a little deep dive on AY,

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<v Speaker 3>what specifically is it about AI that's complicating this?

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<v Speaker 6>That's a very good question.

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<v Speaker 5>AI now moves from you know, actions just being taken

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<v Speaker 5>from you know, somebody operating a system to the technology

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<v Speaker 5>actually making decisions. Right, So you have to have a

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<v Speaker 5>much better visibility of what systems AI is touching, what

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<v Speaker 5>data it is accessing, and where, right. So you have

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<v Speaker 5>to have that mapping much more clear because the stakes

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<v Speaker 5>are higher now on how technology is actually operating your business.

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<v Speaker 6>Right.

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<v Speaker 5>So I do think that there is an acceleration because

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<v Speaker 5>of that. The second element, AI is going to increase

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<v Speaker 5>the amount of vulnerabilities that are going to be either

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<v Speaker 5>identified or created. So you have to have an ability

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<v Speaker 5>to continuously monitor and scan what is happening in the

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<v Speaker 5>cybersecurity landscape so that you can prevent and react in

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<v Speaker 5>a much faster way. So there are more elements of

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<v Speaker 5>disruption that are coming up as a result of the

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<v Speaker 5>acceleration of technology.

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<v Speaker 7>I can give you a concrete example. The way applications

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<v Speaker 7>work today is pretty much deterministic. You have rules, you

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<v Speaker 7>have data, you have processes. Very often embed it into

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<v Speaker 7>the the code, into the business logic. So these are

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<v Speaker 7>executed and very often if you have the same input,

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<v Speaker 7>you have the same output. And so you have I

0:14:19.840 --> 0:14:22.880
<v Speaker 7>mean application with modules, you have APIs, you have data,

0:14:23.000 --> 0:14:25.720
<v Speaker 7>you have you know beautiful.

0:14:25.240 --> 0:14:26.240
<v Speaker 2>Mobile first front ends.

0:14:26.240 --> 0:14:28.080
<v Speaker 7>You know all these fancy things that we that we

0:14:28.160 --> 0:14:31.160
<v Speaker 7>run on the cloud or on premium whatever. So let's

0:14:31.160 --> 0:14:34.320
<v Speaker 7>project yourself into a couple of years from now where

0:14:34.360 --> 0:14:37.000
<v Speaker 7>the architecture is going to be agentic native.

0:14:38.200 --> 0:14:40.400
<v Speaker 2>With concepts such as head less applications.

0:14:40.440 --> 0:14:46.240
<v Speaker 7>So you will interact with kind of prompt interface and

0:14:46.440 --> 0:14:49.200
<v Speaker 7>you will start asking as a customer or as an

0:14:49.200 --> 0:14:52.360
<v Speaker 7>employee or as a partner, you will ask interacting and

0:14:52.440 --> 0:14:55.640
<v Speaker 7>asking a certain number of problems to be solved, and

0:14:55.680 --> 0:14:58.400
<v Speaker 7>this is going to be given through tokens and all

0:14:58.440 --> 0:15:02.960
<v Speaker 7>these all these technologies into an ecosystem of digital agents

0:15:03.760 --> 0:15:08.960
<v Speaker 7>orchestrated and orchestrating activities looking at what is in the

0:15:09.440 --> 0:15:11.800
<v Speaker 7>in the rug in terms of what is the process

0:15:11.840 --> 0:15:13.960
<v Speaker 7>telling me about how do I have to manage that?

0:15:14.360 --> 0:15:16.680
<v Speaker 7>What kind of data do I have in my repository?

0:15:17.040 --> 0:15:19.160
<v Speaker 7>And you enter into something which is going to become

0:15:19.240 --> 0:15:22.840
<v Speaker 7>much more probabilistic, and you have llms there in the

0:15:22.880 --> 0:15:28.200
<v Speaker 7>meantime in the middle trying to get answers smart answers

0:15:28.320 --> 0:15:30.160
<v Speaker 7>to queries that will come from.

0:15:30.120 --> 0:15:31.800
<v Speaker 2>Specialized digital agents.

0:15:32.800 --> 0:15:37.600
<v Speaker 7>So there's nothing to do with the way applications run today.

0:15:38.360 --> 0:15:42.240
<v Speaker 7>And if you look at the flow of data today

0:15:42.840 --> 0:15:45.560
<v Speaker 7>that we know, we know where the data located. That

0:15:45.680 --> 0:15:47.760
<v Speaker 7>was saying you know a lot of things we know

0:15:48.320 --> 0:15:50.280
<v Speaker 7>and how the data is going to flow in all

0:15:50.320 --> 0:15:54.320
<v Speaker 7>the directions in this Argentic native architecture. You understand that,

0:15:55.080 --> 0:15:58.800
<v Speaker 7>as you said, this is going to accelerate significantly and

0:15:58.840 --> 0:16:02.480
<v Speaker 7>the need to understand the underlying stack and architecture in

0:16:02.560 --> 0:16:08.080
<v Speaker 7>the sovereign the ecosystem is going to be crucial. You know,

0:16:08.320 --> 0:16:12.040
<v Speaker 7>data can suddenly become public public in the way they

0:16:12.040 --> 0:16:14.960
<v Speaker 7>can be used to train models and a little bit

0:16:15.000 --> 0:16:16.840
<v Speaker 7>of your IP step by stead of going to go

0:16:16.960 --> 0:16:20.000
<v Speaker 7>into those those models if they learn if you are

0:16:20.040 --> 0:16:22.400
<v Speaker 7>not careful, that's what it's going to happen. Of course,

0:16:22.400 --> 0:16:25.040
<v Speaker 7>there are ways to prevent that, but if you're not careful,

0:16:25.080 --> 0:16:28.600
<v Speaker 7>you can suddenly see the world around you becoming more

0:16:28.640 --> 0:16:30.400
<v Speaker 7>intelligent than you on your own business.

0:16:31.720 --> 0:16:34.800
<v Speaker 3>It seems like there's a this is a very crude

0:16:34.840 --> 0:16:37.640
<v Speaker 3>way of putting it, but there's a race going on

0:16:38.560 --> 0:16:41.320
<v Speaker 3>with the technology on running one race and then the

0:16:41.320 --> 0:16:44.120
<v Speaker 3>other race. Is our ability to kind of make sense

0:16:44.160 --> 0:16:47.520
<v Speaker 3>of it, have visibility and it integrate the technology into

0:16:47.520 --> 0:16:47.960
<v Speaker 3>the way we.

0:16:47.920 --> 0:16:50.480
<v Speaker 4>Do our who's winning that race right now? Is it?

0:16:50.520 --> 0:16:52.280
<v Speaker 4>Is it hard to keep up with the technology.

0:16:53.280 --> 0:16:56.880
<v Speaker 5>That's why I think you need the technology to govern

0:16:56.920 --> 0:16:59.640
<v Speaker 5>the technology right and and and to me, that is

0:17:00.320 --> 0:17:04.080
<v Speaker 5>what our proposition with this platform that we launched a

0:17:04.119 --> 0:17:07.880
<v Speaker 5>few weeks ago called Sovereign Core, is to provide that

0:17:08.200 --> 0:17:11.920
<v Speaker 5>those that tool in and those capabilities to help organizations

0:17:12.280 --> 0:17:15.880
<v Speaker 5>create those capabilities. Because what we learned already is that

0:17:16.040 --> 0:17:19.680
<v Speaker 5>as your Money explained very well, the technology is going

0:17:19.760 --> 0:17:26.040
<v Speaker 5>to accelerate exponentially. How do you map that with that

0:17:26.200 --> 0:17:30.200
<v Speaker 5>same level of speed only another technology that is going

0:17:30.280 --> 0:17:34.440
<v Speaker 5>to you know, operate at the same level of acceleration.

0:17:35.000 --> 0:17:35.680
<v Speaker 6>And that is.

0:17:35.600 --> 0:17:39.040
<v Speaker 5>Exactly the proposition that we have in supporting our clients.

0:17:39.400 --> 0:17:41.440
<v Speaker 5>So that's the headache that you're trying to solve.

0:17:42.080 --> 0:17:45.600
<v Speaker 3>Givani, do you I'm assuming you've been in this field

0:17:45.600 --> 0:17:46.960
<v Speaker 3>of technology.

0:17:46.680 --> 0:17:49.679
<v Speaker 2>For how many years or thirty years?

0:17:50.520 --> 0:17:53.400
<v Speaker 3>Is there any I'm curious to compare the moment we're

0:17:53.440 --> 0:17:57.760
<v Speaker 3>into any previous moments. So you've now lived through several

0:17:59.000 --> 0:18:02.640
<v Speaker 3>technological uphea How does this one compare to the ones

0:18:02.680 --> 0:18:03.560
<v Speaker 3>earlier in your career?

0:18:03.920 --> 0:18:07.399
<v Speaker 7>For me, this one is very clearly the one that

0:18:07.440 --> 0:18:14.560
<v Speaker 7>has the highest potential and in terms of speed, there's

0:18:14.600 --> 0:18:18.920
<v Speaker 7>no precedent everything we've done in the past where we've been.

0:18:18.760 --> 0:18:20.560
<v Speaker 2>Trying to modernize.

0:18:20.640 --> 0:18:24.639
<v Speaker 7>Let's take a complete, complete exam modernizing business applications. We

0:18:24.680 --> 0:18:27.879
<v Speaker 7>had this discussion a couple of months ago. So like

0:18:28.200 --> 0:18:30.959
<v Speaker 7>all the companies in the world, we have legacy applications.

0:18:30.960 --> 0:18:33.760
<v Speaker 7>All the companies have legacy applications that have been written

0:18:34.280 --> 0:18:37.879
<v Speaker 7>I don't know, thirty fifty years ago, and the journey

0:18:37.920 --> 0:18:42.600
<v Speaker 7>to modernize those applications has been the last let's say,

0:18:42.880 --> 0:18:46.600
<v Speaker 7>the last fifteen years, something like very often a five

0:18:46.680 --> 0:18:50.159
<v Speaker 7>years ticket. Every time you wanted to work to modernize something,

0:18:50.760 --> 0:18:55.760
<v Speaker 7>including migration and decommissioning. And every time we even a

0:18:55.840 --> 0:18:58.280
<v Speaker 7>year ago, every time we were thinking about how there's

0:18:58.359 --> 0:19:01.119
<v Speaker 7>technology out there we can go much, much, much faster,

0:19:01.920 --> 0:19:05.120
<v Speaker 7>we've always been blocked, and then we always came back

0:19:05.160 --> 0:19:11.080
<v Speaker 7>to that unit of performance of the five years. And

0:19:11.160 --> 0:19:17.080
<v Speaker 7>since this year, things are become potentially feasible, because that's

0:19:17.119 --> 0:19:21.199
<v Speaker 7>the Augentic revolution, because then you can specialize agents like

0:19:21.320 --> 0:19:25.280
<v Speaker 7>people in a team, to split the process into subtasks,

0:19:25.400 --> 0:19:28.040
<v Speaker 7>and everybody is going to be very smart and intelligent

0:19:28.119 --> 0:19:29.520
<v Speaker 7>in solving a part of the problem.

0:19:30.119 --> 0:19:31.440
<v Speaker 2>And then if you are good enough to.

0:19:31.480 --> 0:19:37.200
<v Speaker 7>Orchestrate that towards an outcome, which could be an application, modernization, ABC, whatsoever.

0:19:38.119 --> 0:19:41.359
<v Speaker 7>Potentially I'm saying potentially, but this is now technologically we

0:19:41.400 --> 0:19:44.080
<v Speaker 7>see that it can work. You can do that, not

0:19:44.119 --> 0:19:45.679
<v Speaker 7>any more than five years, but maybe I don't know,

0:19:45.760 --> 0:19:48.840
<v Speaker 7>a year and a half, two years, maybe a little

0:19:48.840 --> 0:19:50.760
<v Speaker 7>bit less. Why not, I don't know, but you see,

0:19:51.160 --> 0:19:53.679
<v Speaker 7>the difference is simply huge. I've never seen that before.

0:19:54.200 --> 0:19:55.960
<v Speaker 6>Yeah, yeah, I agree with that.

0:19:56.040 --> 0:19:59.680
<v Speaker 5>I think the compression that you're seeing in project delivery,

0:20:00.280 --> 0:20:04.760
<v Speaker 5>new products that we are releasing, updating versions of products,

0:20:05.000 --> 0:20:08.960
<v Speaker 5>it's something that is absolutely unprecedented. So the base of

0:20:09.040 --> 0:20:13.000
<v Speaker 5>innovation is happening very fast. And if we think that

0:20:13.119 --> 0:20:17.360
<v Speaker 5>AI has already created a tremendous impact, let's wait for quantum, right,

0:20:17.400 --> 0:20:21.280
<v Speaker 5>which is going to even take this to another level.

0:20:21.800 --> 0:20:24.280
<v Speaker 2>And the mixed the combination, the prombination of both.

0:20:24.520 --> 0:20:26.120
<v Speaker 4>Yes, it's a very.

0:20:25.960 --> 0:20:29.679
<v Speaker 3>Interesting contradiction at the core of all this, which is

0:20:29.720 --> 0:20:36.199
<v Speaker 3>that intuitively, we know that innovation thrives on openness into connectedness,

0:20:36.520 --> 0:20:40.159
<v Speaker 3>you know, no border or whatever. But so datus already

0:20:40.200 --> 0:20:45.760
<v Speaker 3>makes us think very specifically and often, I would imagine,

0:20:45.800 --> 0:20:48.280
<v Speaker 3>painfully about the reality of orders.

0:20:48.680 --> 0:20:50.720
<v Speaker 4>How do you manage that contradiction?

0:20:52.480 --> 0:20:54.600
<v Speaker 5>I think that is really the challenge that we are

0:20:54.640 --> 0:20:57.239
<v Speaker 5>all facing right now, right I don't think we have

0:20:58.040 --> 0:21:02.960
<v Speaker 5>one hundred percent clear answer yet. There are certain elements

0:21:03.000 --> 0:21:08.680
<v Speaker 5>of this tack that clearly, I mean, trying to reinvent

0:21:09.359 --> 0:21:12.480
<v Speaker 5>is actually going to be a reinvention of the wheel,

0:21:12.600 --> 0:21:15.960
<v Speaker 5>Like I mean, I'm not going to develop chips from

0:21:16.000 --> 0:21:19.639
<v Speaker 5>the scratch from scratch, for example, infrastructure from scratch, but

0:21:19.680 --> 0:21:21.760
<v Speaker 5>there are other elements of the stack that I can

0:21:21.800 --> 0:21:23.040
<v Speaker 5>get much better control.

0:21:23.359 --> 0:21:23.560
<v Speaker 2>Right.

0:21:23.640 --> 0:21:26.680
<v Speaker 6>So for example, to the point that you'vanni made before, where.

0:21:26.480 --> 0:21:30.800
<v Speaker 5>My data is sitting, what is the orchestration layer that

0:21:30.840 --> 0:21:34.040
<v Speaker 5>I can implement so that I can bring the right

0:21:34.119 --> 0:21:37.719
<v Speaker 5>player at the right time. So look at the stack

0:21:37.720 --> 0:21:40.280
<v Speaker 5>of technology that you are implementing and see what are

0:21:40.320 --> 0:21:44.560
<v Speaker 5>the elements where number one, it's feasible to achieve control

0:21:44.880 --> 0:21:48.960
<v Speaker 5>and number two, I know that it's something that I

0:21:48.960 --> 0:21:52.199
<v Speaker 5>actually have to do to make my business resilient. And

0:21:52.280 --> 0:21:54.960
<v Speaker 5>focus on those, right, because if you try to address

0:21:55.480 --> 0:21:58.119
<v Speaker 5>the entire stack, or if you try to create a

0:21:58.200 --> 0:22:03.840
<v Speaker 5>model that basic build a fortress, that's not going to.

0:22:03.840 --> 0:22:06.679
<v Speaker 6>Be even feasible for you to achieve.

0:22:06.720 --> 0:22:09.879
<v Speaker 5>Right, And normally say that sovereignty is not about building walls,

0:22:09.920 --> 0:22:13.359
<v Speaker 5>it's about building bridges, right, It's how you really created

0:22:13.400 --> 0:22:14.520
<v Speaker 5>those connections.

0:22:15.359 --> 0:22:17.520
<v Speaker 2>I like, I like the way you phrase it.

0:22:17.760 --> 0:22:22.720
<v Speaker 7>That's exactly that, because at the end, if you put

0:22:22.760 --> 0:22:29.439
<v Speaker 7>sovereignty as an architecture requirement when you do design, I

0:22:29.480 --> 0:22:32.800
<v Speaker 7>don't say it's the it's it's it's the key to

0:22:32.880 --> 0:22:36.439
<v Speaker 7>this very difficult you know, parading, but at least.

0:22:36.320 --> 0:22:37.840
<v Speaker 2>It's making choices easier.

0:22:39.480 --> 0:22:44.120
<v Speaker 7>So, for example, if you if you don't put sovereignty

0:22:44.200 --> 0:22:46.800
<v Speaker 7>as a business requirement, and you want to develop your

0:22:46.800 --> 0:22:50.080
<v Speaker 7>business in the cloud, what you are going to.

0:22:50.040 --> 0:22:52.919
<v Speaker 2>Do is probably look at the available features that ive

0:22:53.080 --> 0:22:56.120
<v Speaker 2>features from the cloud provider. You're going to use those

0:22:56.119 --> 0:22:57.480
<v Speaker 2>features full speed to go.

0:22:57.440 --> 0:23:00.000
<v Speaker 7>As fast as possible, as efficient as possible, and get

0:23:00.040 --> 0:23:03.080
<v Speaker 7>access to all the stack innovation and everything else. And

0:23:03.119 --> 0:23:07.239
<v Speaker 7>the day you have a problem, you cannot switch, or

0:23:07.640 --> 0:23:10.040
<v Speaker 7>it will take you five years and five hundred million

0:23:10.119 --> 0:23:10.560
<v Speaker 7>to switch.

0:23:11.680 --> 0:23:12.639
<v Speaker 2>If you take the.

0:23:14.240 --> 0:23:19.439
<v Speaker 7>Sovereignty as a requirement by design, when you want to

0:23:19.720 --> 0:23:24.840
<v Speaker 7>start the configuration of your stack, you ask yourself, what

0:23:24.960 --> 0:23:28.280
<v Speaker 7>do I have to concretely put here as a configuration item?

0:23:28.600 --> 0:23:31.399
<v Speaker 7>If I want to be, for example, multi cloud compatible

0:23:32.240 --> 0:23:35.680
<v Speaker 7>or multi cloud and on prem compatible, what kind of

0:23:35.760 --> 0:23:39.159
<v Speaker 7>additional technologies maybe I have to use in order to

0:23:39.160 --> 0:23:43.720
<v Speaker 7>be able to I mean, do some portability of some

0:23:43.760 --> 0:23:46.720
<v Speaker 7>workload from one platform to another. Not because I want

0:23:46.760 --> 0:23:48.480
<v Speaker 7>to do that every day, because it makes no sense.

0:23:48.520 --> 0:23:51.159
<v Speaker 7>But if tomorrow I have a problem, I want to

0:23:51.200 --> 0:23:53.919
<v Speaker 7>be sure that by design I can I know what

0:23:53.960 --> 0:23:55.760
<v Speaker 7>the process I'm going to use. What's the process is

0:23:55.840 --> 0:23:58.080
<v Speaker 7>going to use to do that portability. So these are

0:23:58.119 --> 0:24:03.160
<v Speaker 7>elements that again, if you do design your architecture using

0:24:03.200 --> 0:24:07.040
<v Speaker 7>those those elements, you wake up in the morning you

0:24:07.080 --> 0:24:09.720
<v Speaker 7>have a problem and you have no solution except spending

0:24:09.760 --> 0:24:14.400
<v Speaker 7>alpha billion euro. So that's that's that's the first point

0:24:14.440 --> 0:24:17.680
<v Speaker 7>I wanted to make. Now the second point is if

0:24:17.720 --> 0:24:23.080
<v Speaker 7>you want to turn technology into a business outcome, at

0:24:23.080 --> 0:24:28.440
<v Speaker 7>the end, you need to be very precisely activating a technology.

0:24:29.720 --> 0:24:32.040
<v Speaker 7>So at the end you have to make a choice,

0:24:32.520 --> 0:24:35.119
<v Speaker 7>yes I activate this feature you know, and yes I

0:24:35.200 --> 0:24:38.040
<v Speaker 7>use this tech provider this solution.

0:24:38.640 --> 0:24:39.760
<v Speaker 2>At the end, you don't escape.

0:24:41.480 --> 0:24:44.920
<v Speaker 7>And what it also allows to do is making sure

0:24:44.960 --> 0:24:50.720
<v Speaker 7>that in this architecture based design you also make explicit

0:24:51.800 --> 0:24:55.800
<v Speaker 7>what you buy from a tech provider and what you

0:24:55.880 --> 0:25:00.520
<v Speaker 7>do yourself, and also what you do yourself for how

0:25:00.560 --> 0:25:03.120
<v Speaker 7>long because you can try a certain number of things

0:25:03.119 --> 0:25:06.159
<v Speaker 7>because you are not convinced that a certain number of

0:25:06.200 --> 0:25:13.679
<v Speaker 7>technology providers out there are sufficiently cross cross cloud platforms,

0:25:13.680 --> 0:25:16.080
<v Speaker 7>and and you don't want to end up into a

0:25:16.080 --> 0:25:19.919
<v Speaker 7>looking situation. So you can say I don't feel that

0:25:19.960 --> 0:25:23.520
<v Speaker 7>it's mature enough, so I start doing it. But it's

0:25:23.520 --> 0:25:26.080
<v Speaker 7>not because you start doing it yourself, that you have

0:25:26.200 --> 0:25:28.640
<v Speaker 7>to be stuck in that strategy of doing it yourself

0:25:28.640 --> 0:25:32.320
<v Speaker 7>for fifteen years. Again, even if you start doing it yourself,

0:25:32.440 --> 0:25:35.560
<v Speaker 7>in the design of the way you do it yourself,

0:25:35.920 --> 0:25:39.040
<v Speaker 7>you plan an exit door to be able to move

0:25:39.080 --> 0:25:41.600
<v Speaker 7>into a solution from a tech provider when the strategy

0:25:42.160 --> 0:25:45.679
<v Speaker 7>is mature enough. So that's the difficulty, and that this

0:25:45.880 --> 0:25:50.960
<v Speaker 7>is every day discussions with discipline. What I always recommend

0:25:51.000 --> 0:25:53.400
<v Speaker 7>the teams is make the things explicit.

0:25:54.400 --> 0:25:58.800
<v Speaker 2>There's no right or wrong answer in a limited timeframe.

0:25:58.840 --> 0:26:02.240
<v Speaker 7>There is something that is today for the company and

0:26:02.520 --> 0:26:04.600
<v Speaker 7>may not be the case tomorrow. So let's make it

0:26:04.640 --> 0:26:08.199
<v Speaker 7>explicit and don't miss that that that I mean that

0:26:08.400 --> 0:26:10.000
<v Speaker 7>extra work because it's extra work.

0:26:10.119 --> 0:26:13.040
<v Speaker 2>This is not something that is coming really not falling

0:26:13.080 --> 0:26:15.520
<v Speaker 2>from the sky. This is extra work. But it's worse

0:26:15.680 --> 0:26:16.880
<v Speaker 2>doing this this job.

0:26:17.440 --> 0:26:20.560
<v Speaker 7>To be sure that at least we are always in

0:26:20.600 --> 0:26:26.200
<v Speaker 7>this equilib difficult equilibrium between accessing technologies and being sovereign

0:26:26.440 --> 0:26:27.600
<v Speaker 7>compatible by design.

0:26:28.480 --> 0:26:31.320
<v Speaker 5>Just to stress you saw that Jovan used the word

0:26:31.400 --> 0:26:34.240
<v Speaker 5>by design all the time, right, because I think that

0:26:34.280 --> 0:26:37.800
<v Speaker 5>intentionality is probably what's different from what we saw in

0:26:37.840 --> 0:26:41.000
<v Speaker 5>the past on how companies were adopting innovation, It was

0:26:41.160 --> 0:26:46.359
<v Speaker 5>very much driven by convenience and speed, and now you

0:26:46.480 --> 0:26:52.000
<v Speaker 5>have to have convenience, speed and intentionality and understand that

0:26:52.840 --> 0:26:55.840
<v Speaker 5>you know, you have to have visibility on the decisions

0:26:55.840 --> 0:26:59.200
<v Speaker 5>you're making, and you have to keep your choices more open.

0:26:59.280 --> 0:27:02.080
<v Speaker 3>It was curious when you describe the kind of challenges

0:27:02.080 --> 0:27:03.840
<v Speaker 3>that come along with data sovereignty.

0:27:04.640 --> 0:27:08.440
<v Speaker 4>This is also the way that two of you work together.

0:27:08.960 --> 0:27:09.440
<v Speaker 4>So I can.

0:27:11.480 --> 0:27:15.359
<v Speaker 3>Companies Insurance have been working with IBM, I imagine for

0:27:15.960 --> 0:27:17.760
<v Speaker 3>as long as they've been insurance and as long as

0:27:17.760 --> 0:27:20.880
<v Speaker 3>they've been IBM. But I mean, in this particular iteration,

0:27:21.320 --> 0:27:24.000
<v Speaker 3>are we altering the nature the relationship.

0:27:24.359 --> 0:27:28.880
<v Speaker 5>Before I go specifically to the partnership with as, I'm

0:27:28.920 --> 0:27:30.879
<v Speaker 5>going to give an example of what you're doing with

0:27:31.200 --> 0:27:36.920
<v Speaker 5>another company, which I think illustrates very well the intention,

0:27:37.040 --> 0:27:38.520
<v Speaker 5>the objective and the challenge.

0:27:38.600 --> 0:27:38.760
<v Speaker 2>Right.

0:27:38.840 --> 0:27:42.520
<v Speaker 5>So we have a partnership with Locale as well, right,

0:27:42.560 --> 0:27:45.119
<v Speaker 5>which is the cosmetics company. And they were like, okay,

0:27:45.960 --> 0:27:48.560
<v Speaker 5>foundational models, large language models.

0:27:48.280 --> 0:27:49.240
<v Speaker 6>Are super powerful.

0:27:49.480 --> 0:27:52.920
<v Speaker 5>Right, But I invested one hundred years in my company

0:27:53.359 --> 0:27:58.000
<v Speaker 5>to build knowledge about building formula for cosmetics. Right, I

0:27:58.040 --> 0:28:01.920
<v Speaker 5>don't want to give that expert is that knowledge away?

0:28:02.480 --> 0:28:06.440
<v Speaker 5>So I want to train my own my own foundational model.

0:28:06.960 --> 0:28:08.919
<v Speaker 6>They are not going to do the.

0:28:08.760 --> 0:28:13.160
<v Speaker 5>Entire stack of training by themselves, so they partner with us.

0:28:13.200 --> 0:28:16.719
<v Speaker 5>We provide research, We provide tooling that allows them to

0:28:16.760 --> 0:28:20.080
<v Speaker 5>bring their data and create their own model based on

0:28:20.119 --> 0:28:24.160
<v Speaker 5>an open source pre trained a model. So these are

0:28:24.160 --> 0:28:27.760
<v Speaker 5>the types of you know, challenges that companies are facing.

0:28:27.800 --> 0:28:31.679
<v Speaker 5>And to my point prior what is really critical, to

0:28:31.720 --> 0:28:34.280
<v Speaker 5>the point that you don't want, you know, a third

0:28:34.280 --> 0:28:38.360
<v Speaker 5>party to have visibility or access to And when it

0:28:38.440 --> 0:28:42.440
<v Speaker 5>comes to the to the relationship with ACTS and many

0:28:42.480 --> 0:28:47.040
<v Speaker 5>other of our clients, I think number one is transparency. Right,

0:28:47.120 --> 0:28:51.640
<v Speaker 5>they totally understand how our technology operates. What are the

0:28:52.040 --> 0:28:55.040
<v Speaker 5>you know, what are the elements that are part of

0:28:55.080 --> 0:28:57.880
<v Speaker 5>our architecture that are going to connect with their systems,

0:28:58.560 --> 0:29:01.479
<v Speaker 5>and trust becomes really a fundamental element.

0:29:02.320 --> 0:29:03.080
<v Speaker 6>Jovanni said.

0:29:03.200 --> 0:29:04.920
<v Speaker 5>There are things that I'm going to build, there are

0:29:04.960 --> 0:29:07.200
<v Speaker 5>things that I'm going to buy, So who am I

0:29:07.240 --> 0:29:11.440
<v Speaker 5>going to buy from? Does this company really understand sovereignty

0:29:11.480 --> 0:29:14.520
<v Speaker 5>by design? It's part of the way that the architecture

0:29:14.560 --> 0:29:18.120
<v Speaker 5>their solutions. I think those are the elements and I

0:29:18.160 --> 0:29:20.840
<v Speaker 5>think that's why this discussion is so important right now

0:29:20.840 --> 0:29:24.320
<v Speaker 5>because it also levels the playing field for us. Right

0:29:25.280 --> 0:29:27.760
<v Speaker 5>at IBM, we have always been a company focused on

0:29:28.080 --> 0:29:30.960
<v Speaker 5>technologies for the corporate world.

0:29:31.280 --> 0:29:35.840
<v Speaker 6>To really implement mission critical workloads. So I think now.

0:29:35.680 --> 0:29:38.600
<v Speaker 5>People understand why we approach things the way we approach

0:29:38.640 --> 0:29:42.680
<v Speaker 5>and why hybrid cloud, you know, giving companies the ability

0:29:42.680 --> 0:29:47.120
<v Speaker 5>to access multiple providers either on prem or in the

0:29:47.120 --> 0:29:51.200
<v Speaker 5>public domain. Why we have approached our technologies in that

0:29:52.080 --> 0:29:55.720
<v Speaker 5>characterization is because we are starting to see the challenges

0:29:55.800 --> 0:29:59.719
<v Speaker 5>of not having a multi cloud. Hybrid cloud strategy can

0:29:59.800 --> 0:30:03.080
<v Speaker 5>act actually imply to your business. So I think that

0:30:03.880 --> 0:30:06.320
<v Speaker 5>this is really what changes for us now we have

0:30:06.560 --> 0:30:09.360
<v Speaker 5>we we are much more conscious on the risks and

0:30:09.400 --> 0:30:12.880
<v Speaker 5>those have to be considered when you are making technical decisions.

0:30:15.200 --> 0:30:17.960
<v Speaker 2>Yea, I think in contact remre with with what you said.

0:30:18.200 --> 0:30:21.520
<v Speaker 7>That's that's that's at the heart of the relationship between

0:30:22.120 --> 0:30:24.800
<v Speaker 7>company like accesle and and and.

0:30:24.800 --> 0:30:27.160
<v Speaker 2>A strategic partner technology partner.

0:30:28.200 --> 0:30:32.640
<v Speaker 7>If if that understanding is not there, there is no

0:30:32.760 --> 0:30:35.120
<v Speaker 7>way we are going to rely on that strategic partner

0:30:35.200 --> 0:30:42.120
<v Speaker 7>to build whatever future strategic orientation and and and it's

0:30:42.120 --> 0:30:45.920
<v Speaker 7>true that today we have a large variety of technologies

0:30:46.000 --> 0:30:50.680
<v Speaker 7>running in production as an insurance company. Like banks, we

0:30:50.760 --> 0:30:55.120
<v Speaker 7>have mainframes running a lot of a lot of business.

0:30:55.320 --> 0:30:58.320
<v Speaker 7>But at the same time we are full speeding the

0:30:58.480 --> 0:31:03.120
<v Speaker 7>AI transformation. We have finished the cloud migration and being

0:31:03.200 --> 0:31:07.000
<v Speaker 7>able to understand the full stuck again, that's what is

0:31:07.040 --> 0:31:08.080
<v Speaker 7>absolutely critical.

0:31:09.200 --> 0:31:13.560
<v Speaker 3>I had asked you earlier about was there anything particular

0:31:13.600 --> 0:31:17.560
<v Speaker 3>about the insurance business when it came to this question.

0:31:17.720 --> 0:31:20.000
<v Speaker 3>I want to come back to that a little bit,

0:31:20.040 --> 0:31:24.040
<v Speaker 3>because you know, you've both of you have talked about

0:31:24.080 --> 0:31:30.240
<v Speaker 3>trust and transparency. Our trust and transparency pretty core considerations

0:31:30.280 --> 0:31:33.000
<v Speaker 3>for insure, I mean, much more so than someone that

0:31:33.280 --> 0:31:35.080
<v Speaker 3>yeah making you know, handkerchiefs.

0:31:36.320 --> 0:31:39.160
<v Speaker 4>Talk a little bit about Can you revisit that question?

0:31:39.720 --> 0:31:41.360
<v Speaker 7>Yeah, of course, I think you have a very good

0:31:41.360 --> 0:31:44.680
<v Speaker 7>point if I look at the notion of trust. As

0:31:44.720 --> 0:31:48.920
<v Speaker 7>you said, insurance is about trust, the noble purpose of

0:31:48.920 --> 0:31:49.880
<v Speaker 7>an insurance company.

0:31:49.880 --> 0:31:52.000
<v Speaker 2>That's what I repeat every time I have the opportunity.

0:31:52.200 --> 0:31:54.160
<v Speaker 7>You know, I'm so happy every morning when I wake

0:31:54.240 --> 0:31:56.800
<v Speaker 7>up because I know what I'm waking up.

0:31:57.080 --> 0:31:58.480
<v Speaker 2>AX is there.

0:31:59.360 --> 0:32:06.640
<v Speaker 7>To help families, companies, individuals when they face real difficulties.

0:32:06.960 --> 0:32:08.520
<v Speaker 2>You know why you wake up every morning.

0:32:08.560 --> 0:32:12.640
<v Speaker 7>You know what is why it's difficult and this implies,

0:32:12.640 --> 0:32:15.760
<v Speaker 7>as you said, the notion of trust. So of course

0:32:16.000 --> 0:32:19.080
<v Speaker 7>for us what it means, it means one, we need

0:32:19.120 --> 0:32:22.920
<v Speaker 7>to make sure you were talking about data healthcare data.

0:32:22.480 --> 0:32:23.800
<v Speaker 2>And your initial intervention.

0:32:24.400 --> 0:32:27.760
<v Speaker 7>We need to make sure indeed we know perfectly exactly

0:32:28.320 --> 0:32:32.240
<v Speaker 7>where our data are stored and what kind of data

0:32:32.280 --> 0:32:35.600
<v Speaker 7>we talk about, where is it sensitive data health data,

0:32:35.640 --> 0:32:38.680
<v Speaker 7>because we need to overprotect that in order to make

0:32:38.720 --> 0:32:42.480
<v Speaker 7>sure that data that we have for our customers are

0:32:42.480 --> 0:32:44.600
<v Speaker 7>not going to be made public. You know, that's our

0:32:44.680 --> 0:32:47.360
<v Speaker 7>duty to do that. It's again a notion of trust.

0:32:48.000 --> 0:32:51.240
<v Speaker 7>Our customers trust that we do that. Insurance companies are

0:32:51.560 --> 0:32:55.120
<v Speaker 7>long term companies, and if you don't have trust anymore,

0:32:55.280 --> 0:32:58.120
<v Speaker 7>I mean, we're simply out of business. So data is

0:32:58.120 --> 0:33:01.680
<v Speaker 7>an important topic. But at the same time we talked

0:33:01.680 --> 0:33:06.200
<v Speaker 7>about cyber You know, we have a very very strong

0:33:07.320 --> 0:33:12.960
<v Speaker 7>cyber team and cyber security practice that we use both

0:33:13.040 --> 0:33:16.440
<v Speaker 7>of course to protect AXA like many organisms. I mean

0:33:16.480 --> 0:33:19.720
<v Speaker 7>we all do that, of course, but also to help

0:33:20.240 --> 0:33:22.280
<v Speaker 7>our customers protect themselves.

0:33:22.640 --> 0:33:24.360
<v Speaker 2>And we have also used our.

0:33:24.240 --> 0:33:30.440
<v Speaker 7>Skills to develop insurance products for companies to protect them

0:33:30.440 --> 0:33:34.040
<v Speaker 7>against cyber risks. So that's also our duty to say

0:33:34.160 --> 0:33:36.560
<v Speaker 7>not only we develop those skills, but we also give

0:33:36.600 --> 0:33:40.400
<v Speaker 7>that skill back via an insurance product to our customers

0:33:40.440 --> 0:33:41.120
<v Speaker 7>because we want.

0:33:41.000 --> 0:33:42.160
<v Speaker 2>To help them.

0:33:42.640 --> 0:33:46.479
<v Speaker 7>And then, of course back to the notion of trust itself,

0:33:46.480 --> 0:33:49.160
<v Speaker 7>if those elements are there at the end, what we

0:33:49.200 --> 0:33:51.600
<v Speaker 7>believe as an insurance company, and I agree with you

0:33:51.640 --> 0:33:55.360
<v Speaker 7>this is valid for the insurance sector in general, is

0:33:55.400 --> 0:34:00.479
<v Speaker 7>that if we continue to demonstrate then to do that

0:34:00.600 --> 0:34:07.520
<v Speaker 7>very seriously, our customers continue to have a lot of

0:34:07.560 --> 0:34:11.560
<v Speaker 7>trust in us, and probably with the air revolution, the

0:34:11.600 --> 0:34:14.560
<v Speaker 7>ones who will be able to be better, if I

0:34:14.600 --> 0:34:16.640
<v Speaker 7>can use that word, will be the ones who will

0:34:16.680 --> 0:34:20.080
<v Speaker 7>be able to continuously demonstrate that they can they always

0:34:20.560 --> 0:34:24.720
<v Speaker 7>deserve the trust that they received from from from their customers.

0:34:25.040 --> 0:34:27.480
<v Speaker 7>So yes, of course this is specific. I mean the

0:34:27.600 --> 0:34:30.520
<v Speaker 7>specific to the insurance sector. Probably things also such a

0:34:30.600 --> 0:34:34.879
<v Speaker 7>you know, pharmaceutical companies, you know things activities where it's

0:34:35.040 --> 0:34:37.400
<v Speaker 7>very very sensitive.

0:34:38.400 --> 0:34:39.560
<v Speaker 2>Yeah, that that's clear.

0:34:40.400 --> 0:34:42.200
<v Speaker 3>Let me ask a question an other way and maybe

0:34:42.239 --> 0:34:47.960
<v Speaker 3>Honor you can jump in here. These considerations might differ

0:34:48.000 --> 0:34:50.840
<v Speaker 3>from industry to industry, but can you what about from

0:34:50.960 --> 0:34:54.720
<v Speaker 3>big to small? Are is this a more pressing issue

0:34:54.719 --> 0:34:58.640
<v Speaker 3>for a multinational than it is for a startup.

0:35:00.280 --> 0:35:02.840
<v Speaker 5>I think that this is this this applies to all

0:35:02.920 --> 0:35:06.280
<v Speaker 5>all the companies, right, especially because they startups from today

0:35:06.560 --> 0:35:09.280
<v Speaker 5>are not like the startups from the past. Right, everybody

0:35:09.360 --> 0:35:12.879
<v Speaker 5>is scaling so fast, right, You're you're seeing companies going

0:35:12.920 --> 0:35:16.160
<v Speaker 5>from zero to billion in like months in the current

0:35:16.560 --> 0:35:20.200
<v Speaker 5>in the current world, all these startup startups in general,

0:35:20.239 --> 0:35:24.839
<v Speaker 5>they operate in a global in a global footprint. So

0:35:25.080 --> 0:35:28.160
<v Speaker 5>if I am a startup going into the let's say

0:35:28.200 --> 0:35:32.600
<v Speaker 5>the healthcare, right industry, I'll need to follow the regulations,

0:35:32.600 --> 0:35:35.080
<v Speaker 5>even if I'm a very small startup, right. So I

0:35:35.120 --> 0:35:38.960
<v Speaker 5>do think that probably what is happening now is that

0:35:39.000 --> 0:35:45.520
<v Speaker 5>this applies to different sizes, different industries, probably some more

0:35:45.600 --> 0:35:48.440
<v Speaker 5>regulated than others. And going back to the point of

0:35:48.480 --> 0:35:52.040
<v Speaker 5>Giovanni on insurance, I think insurance is probably the industry

0:35:52.040 --> 0:35:57.160
<v Speaker 5>where this is much more visible, because insurance is about

0:35:57.200 --> 0:36:00.480
<v Speaker 5>pricing risk, right, and how do you price risk based

0:36:00.480 --> 0:36:04.000
<v Speaker 5>on knowledge, based on probabilities? And that's all data, right,

0:36:04.080 --> 0:36:08.720
<v Speaker 5>So data is their product, I would say. But every

0:36:08.760 --> 0:36:11.920
<v Speaker 5>company now will have to be watching those aspects because

0:36:11.920 --> 0:36:15.120
<v Speaker 5>as they scale, even if they are small, they'll need

0:36:15.160 --> 0:36:17.920
<v Speaker 5>to be meeting those requirements.

0:36:18.440 --> 0:36:21.040
<v Speaker 3>If you were to chat with a founder who's just

0:36:21.080 --> 0:36:24.800
<v Speaker 3>starting out, came to you and said, what should I

0:36:24.840 --> 0:36:25.799
<v Speaker 3>be doing about data?

0:36:25.840 --> 0:36:26.280
<v Speaker 2>Sovereignty?

0:36:26.360 --> 0:36:28.759
<v Speaker 3>Should what should I get right on day one? What

0:36:28.800 --> 0:36:29.640
<v Speaker 3>would your advice be?

0:36:30.080 --> 0:36:32.880
<v Speaker 5>I think now it's much easier because when you're starting

0:36:32.880 --> 0:36:36.960
<v Speaker 5>from scratch, you can really design your solutions and your

0:36:37.040 --> 0:36:41.640
<v Speaker 5>applications already with all that in your mind, right, So

0:36:41.800 --> 0:36:44.280
<v Speaker 5>all the points that you're going to made before by design,

0:36:44.800 --> 0:36:48.319
<v Speaker 5>this is how you're going to design upfront. Understand what

0:36:48.440 --> 0:36:52.480
<v Speaker 5>industry are operating in. Understand what are the implications of

0:36:52.520 --> 0:36:56.920
<v Speaker 5>the data that you're manipulating, Map the risk and the

0:36:57.000 --> 0:37:00.600
<v Speaker 5>critical mission applications that you're going to develop. Make sure

0:37:00.640 --> 0:37:04.880
<v Speaker 5>that those are really like sovereign to the core, and

0:37:05.400 --> 0:37:07.000
<v Speaker 5>you know, start the execution.

0:37:08.200 --> 0:37:09.840
<v Speaker 7>We have not been talking a lot about that, but

0:37:09.880 --> 0:37:14.239
<v Speaker 7>if I look at Europe now, for example, encryption is

0:37:14.320 --> 0:37:19.279
<v Speaker 7>very critical. When you talk sovereignty, everything you said is

0:37:19.320 --> 0:37:23.520
<v Speaker 7>absolutely correct. But that's an advice I would give is

0:37:23.640 --> 0:37:27.160
<v Speaker 7>make sure, for example that the management of the keys

0:37:28.120 --> 0:37:31.520
<v Speaker 7>is yours is yours, and do that from day one.

0:37:32.239 --> 0:37:36.800
<v Speaker 7>Don't do that because when you do encryption, very often

0:37:36.840 --> 0:37:40.800
<v Speaker 7>That's what I was saying earlier. So you have native services,

0:37:40.800 --> 0:37:42.920
<v Speaker 7>for example coming from the cloud providers, and you can

0:37:43.040 --> 0:37:48.120
<v Speaker 7>encrypt using the native services, and this toward the keys

0:37:48.160 --> 0:37:50.720
<v Speaker 7>of course that have been used to do this encryption,

0:37:51.480 --> 0:37:56.200
<v Speaker 7>and it's very comfortable. You can go very you can

0:37:56.239 --> 0:38:01.120
<v Speaker 7>be very fast, but you lose control M and so

0:38:01.520 --> 0:38:04.280
<v Speaker 7>that's that's a very simple trick that in the design

0:38:04.600 --> 0:38:08.520
<v Speaker 7>very often now comes on a regular business to pay attention.

0:38:09.400 --> 0:38:12.640
<v Speaker 7>Of course, you can use the services, but again storing

0:38:12.719 --> 0:38:16.840
<v Speaker 7>the keys, the keys are yours, so then nobody can

0:38:18.719 --> 0:38:19.880
<v Speaker 7>access your data.

0:38:19.960 --> 0:38:20.880
<v Speaker 4>This is a really.

0:38:20.640 --> 0:38:23.799
<v Speaker 3>Interesting theme that I'd love to sort of end on,

0:38:23.880 --> 0:38:27.520
<v Speaker 3>which is it seemed like there was a moment in

0:38:27.600 --> 0:38:30.000
<v Speaker 3>the evolution of technology where the trend was in the

0:38:30.120 --> 0:38:33.160
<v Speaker 3>other direction that I was, you want to do outsources

0:38:33.160 --> 0:38:35.440
<v Speaker 3>as much as you could and just focus on a

0:38:35.480 --> 0:38:38.160
<v Speaker 3>few things. But now you're talking about the importance of

0:38:38.200 --> 0:38:39.120
<v Speaker 3>taking back control.

0:38:39.200 --> 0:38:41.160
<v Speaker 4>Is that? Am I right?

0:38:41.280 --> 0:38:44.319
<v Speaker 3>Is this a shift across a number of different dimensions

0:38:44.480 --> 0:38:45.920
<v Speaker 3>when it comes to technology right now?

0:38:46.120 --> 0:38:46.359
<v Speaker 2>Yeah?

0:38:46.480 --> 0:38:50.440
<v Speaker 5>I think technology now is so core to the business,

0:38:51.080 --> 0:38:55.080
<v Speaker 5>is so central to the strategy that you really have

0:38:55.200 --> 0:38:58.760
<v Speaker 5>to take it like any other major component of your

0:38:59.360 --> 0:39:02.440
<v Speaker 5>supply chain. And to me, that's the reason why we

0:39:02.560 --> 0:39:06.520
<v Speaker 5>have this wake up moment where people understand that I

0:39:06.560 --> 0:39:08.680
<v Speaker 5>need to put much more control, I need to have

0:39:08.800 --> 0:39:10.120
<v Speaker 5>much more visibility.

0:39:10.920 --> 0:39:16.239
<v Speaker 2>The regulation itself is also creating, in a way the

0:39:16.320 --> 0:39:19.040
<v Speaker 2>obligation for us for.

0:39:19.000 --> 0:39:22.680
<v Speaker 7>Certain activities to have those activities back under our control.

0:39:24.120 --> 0:39:27.560
<v Speaker 7>For example, if I look at DORA regulation, what is

0:39:27.600 --> 0:39:32.959
<v Speaker 7>DORA regulation telling you? Understand your key business processes, map

0:39:32.960 --> 0:39:35.960
<v Speaker 7>those key business processes to your underlying technology.

0:39:37.360 --> 0:39:39.480
<v Speaker 2>Check where you have concentration risks.

0:39:40.040 --> 0:39:44.680
<v Speaker 7>Mapping again starting from your very critical business processes. And

0:39:44.760 --> 0:39:50.000
<v Speaker 7>once you've identified the areas where you have concentration, which

0:39:50.040 --> 0:39:59.880
<v Speaker 7>is normal, plan strategies, right strategies, test strategies on reversibility

0:40:00.280 --> 0:40:01.319
<v Speaker 7>and so this is.

0:40:02.960 --> 0:40:06.799
<v Speaker 2>A couple of years ago. We were doing that on

0:40:07.880 --> 0:40:08.440
<v Speaker 2>I would.

0:40:08.200 --> 0:40:12.440
<v Speaker 7>Say, just when we were feeling that something in a

0:40:12.480 --> 0:40:16.120
<v Speaker 7>specific area of the architecture was a little bit strange.

0:40:16.239 --> 0:40:17.719
<v Speaker 2>Then we were doing a deep dive.

0:40:18.200 --> 0:40:21.080
<v Speaker 7>And we were very often arriving at the conclusion that

0:40:21.719 --> 0:40:25.839
<v Speaker 7>probably there we need to change something. Let's change the technology,

0:40:26.360 --> 0:40:30.520
<v Speaker 7>create more portability and bring the thing under control. But

0:40:30.600 --> 0:40:33.919
<v Speaker 7>it was really sporadic, you know, it was not systematic.

0:40:34.480 --> 0:40:38.680
<v Speaker 7>With the regulation now it's mandatory. We are as an

0:40:38.680 --> 0:40:42.600
<v Speaker 7>insurance company, we have to demonstrate every year we do

0:40:42.640 --> 0:40:46.160
<v Speaker 7>the job. So you see, I think you are totally

0:40:46.239 --> 0:40:48.719
<v Speaker 7>right in saying that we need to make sure we

0:40:48.800 --> 0:40:51.840
<v Speaker 7>have a certain number of activities back under our control.

0:40:53.440 --> 0:40:56.120
<v Speaker 7>But it's not only us deciding that. I think it's

0:40:56.160 --> 0:40:59.239
<v Speaker 7>also regulations forcing us. And from that perspective at to say,

0:40:59.239 --> 0:41:00.560
<v Speaker 7>this was a very good initiative.

0:41:01.760 --> 0:41:02.520
<v Speaker 4>So that.

0:41:04.040 --> 0:41:09.279
<v Speaker 3>When you started, Giovanni and you're in this field, you

0:41:09.320 --> 0:41:12.840
<v Speaker 3>were probably either down the hall or on another floor,

0:41:13.360 --> 0:41:13.840
<v Speaker 3>and now.

0:41:13.760 --> 0:41:14.359
<v Speaker 2>You have to be.

0:41:16.160 --> 0:41:17.160
<v Speaker 4>Directly in the C suite.

0:41:17.239 --> 0:41:19.640
<v Speaker 3>I mean, these are it's over the course of your

0:41:19.680 --> 0:41:23.760
<v Speaker 3>career you've probably gone from being marginal to being essential,

0:41:24.200 --> 0:41:26.920
<v Speaker 3>which is very fascinating. I'm wondering did you Did you

0:41:26.960 --> 0:41:30.399
<v Speaker 3>anticipate that transformation a.

0:41:30.360 --> 0:41:33.680
<v Speaker 7>Little bit, yes, because I've always been convinced that in reality,

0:41:35.280 --> 0:41:39.480
<v Speaker 7>the more the world was going to modernize and digitize,

0:41:40.239 --> 0:41:44.680
<v Speaker 7>the more the technology was going to be inevitable. But

0:41:44.760 --> 0:41:49.080
<v Speaker 7>again I was I've not anticipated the speed of the

0:41:49.120 --> 0:41:52.279
<v Speaker 7>current description that I've not anticipated. You know, I was

0:41:52.320 --> 0:41:55.640
<v Speaker 7>thinking about some of the statements that I was making

0:41:55.719 --> 0:42:01.040
<v Speaker 7>five years ago, announcing that a certain number of elements

0:42:01.680 --> 0:42:03.920
<v Speaker 7>we're going to upen probably you know, five two time

0:42:04.040 --> 0:42:07.600
<v Speaker 7>years time frame. In the meantime it's over. We have

0:42:07.640 --> 0:42:11.840
<v Speaker 7>already another disruption, you know. And I'm not talking fifty

0:42:11.880 --> 0:42:14.880
<v Speaker 7>years ago. I'm just talking five years or ten years ago.

0:42:15.960 --> 0:42:16.960
<v Speaker 2>So yeah, I.

0:42:16.920 --> 0:42:19.040
<v Speaker 7>Always had that feeling that technology was going to be

0:42:19.120 --> 0:42:20.600
<v Speaker 7>really critical.

0:42:21.400 --> 0:42:23.239
<v Speaker 2>But I have to be honest and not honest, not

0:42:23.320 --> 0:42:24.440
<v Speaker 2>that the level it is today.

0:42:24.680 --> 0:42:28.160
<v Speaker 3>Yeah, the irony of this conversation is that I over

0:42:28.200 --> 0:42:30.480
<v Speaker 3>the I've been a journalist for several decades and I

0:42:30.520 --> 0:42:34.879
<v Speaker 3>realized a few months ago that my data, in which

0:42:34.920 --> 0:42:38.400
<v Speaker 3>case is just interviews, you know, interview tape and transport,

0:42:38.760 --> 0:42:41.680
<v Speaker 3>was scattered across a million different places. So I did

0:42:41.680 --> 0:42:43.480
<v Speaker 3>my own version of this, and I hired a twenty

0:42:43.520 --> 0:42:46.200
<v Speaker 3>one year old to sit in my hope and physically

0:42:46.239 --> 0:42:49.000
<v Speaker 3>go through all my old archives. I'm doing my own

0:42:49.080 --> 0:42:51.960
<v Speaker 3>version of Malcolm Data. Sovereignty is going on this summer

0:42:52.280 --> 0:42:53.680
<v Speaker 3>a lot less elaterate.

0:42:53.280 --> 0:42:55.960
<v Speaker 6>Good practice, good practice.

0:42:56.120 --> 0:42:56.839
<v Speaker 4>Yeah that's good.

0:42:57.239 --> 0:43:00.760
<v Speaker 3>But thank you very much for joining us on Smart

0:43:00.760 --> 0:43:04.319
<v Speaker 3>Talks at IBM, and good luck and thank you all

0:43:05.040 --> 0:43:07.000
<v Speaker 3>out there for coming and listening.

0:43:07.320 --> 0:43:08.279
<v Speaker 4>Thank you, thank you.

0:43:11.960 --> 0:43:15.680
<v Speaker 3>Smart Talks with IBM is produced by Matt Ramano, Amy Gains, McQuaid,

0:43:16.160 --> 0:43:20.240
<v Speaker 3>Trina Menino and Jake Harper. Engineering by Nina Bird Lawrence

0:43:20.680 --> 0:43:25.720
<v Speaker 3>Mastering by Sarah Braguer, music by Gramoscope, Strategy by Cassidy Meyer.

0:43:26.360 --> 0:43:29.800
<v Speaker 3>Smart Talks with IBM is a production of Pushkin Industries

0:43:30.000 --> 0:43:34.520
<v Speaker 3>and Ruby's studio at iHeartMedia. To find more Pushkin podcasts,

0:43:34.800 --> 0:43:39.319
<v Speaker 3>listen on the iHeartRadio app, Apple Podcasts, or wherever you

0:43:39.440 --> 0:43:43.320
<v Speaker 3>listen to podcasts. I'm Malcolm Gladwell. This is a paid

0:43:43.320 --> 0:43:48.239
<v Speaker 3>advertisement from IBM. The conversations on this podcast don't necessarily

0:43:48.320 --> 0:44:01.720
<v Speaker 3>represent IBM's positions, strategies, or opinions.