
How Tokenization is Transforming Industries
Charles Morey CEO and Founder/ Tokenization Expert Forbes Link to this Post
Forbes Councils Member
Forbes Technology Council
COUNCIL POST
Dec 19, 2024
Charles Morey, CEO, MobilEyes Inc.
"Tokenization is not just a game changer for businesses aiming for an IPO without equity dilution; it also has the potential to revolutionize revenue generation." -Charles Morey-
Industries—from law enforcement to healthcare—are grappling with inefficiencies and rising costs. Emerging technologies, particularly tokenization and artificial intelligence (AI), offer transformative solutions. I've had the chance to work in depth with tokenization in my career, and based on my experience with this technology, I know its applications are incredibly powerful. Tokenization and AI can improve accountability, streamline operations and mitigate risks, driving unprecedented growth and efficiency.
As a leader in the tokenization space, I have conducted extensive research on this technology across various sectors, especially public safety. The trends we see today are just the beginning. Tokenization and AI are poised to reshape the future, driving innovation and creating new opportunities for businesses and society alike.
Law Enforcement And Public Safety
Law enforcement agencies face significant expenses due to civil rights litigation and inadequate training programs. Analyses from the Policing Project reveal that 25 of the largest U.S. police and sheriff’s departments paid approximately $3.2 billion in settlements over a decade. AI-powered accountability tools could help reduce these costs by providing indisputable evidence, potentially saving billions.
Additionally, advancements in automated data collection technology can alleviate administrative burdens. Research from Northwestern University indicates that body worn cameras (BWCs) are associated with a 35% lower likelihood of complaints regarding police use of force but a 14% higher likelihood of misconduct complaints, suggesting enhanced accountability. These technologies have the potential to revolutionize administrative processes and accountability in U.S. law enforcement.
Healthcare
In healthcare, tokenization technology can streamline billing and reduce fraud. The U.S. healthcare system loses $68 billion due to fraud. Automation and secure data storage can simplify compliance reporting, saving providers time and money.
The National Health Care Anti-Fraud Association estimates that healthcare fraud results in financial losses amounting to tens of billions of dollars annually. Conservatively, these losses represent approximately 3% of total healthcare expenditures. However, estimates from government and law enforcement agencies suggest the impact could be significantly higher, reaching up to 10% of annual healthcare spending—equivalent to over $300 billion. These figures underscore the critical need for systemic reforms to enhance security and accountability in the healthcare system.
Retail
The retail industry grapples with losses exceeding $100 billion annually due to theft and fraud. Tokenization and monitoring technologies can enhance inventory tracking and reduce shrinkage. For instance, retailers that integrated AI-powered inventory systems are looking for a massive reduction in errors and theft incidents, saving millions annually.
Transportation And Logistics
Effective route optimization tools can yield significant efficiencies, enabling businesses to reduce mileage by up to 20% and double order capacity without expanding their fleet. These algorithms also have a profound impact on fuel consumption. Such advancements can translate to meaningful cost savings and operational improvements, underscoring the value of route optimization in modern logistics.
Financial Services
The financial sector is heavily impacted by fraud and inefficiencies in compliance reporting. Tokenization offers secure and transparent transaction systems, reducing fraud losses.
Additionally, compliance automation has allowed banks to reduce reporting costs, freeing up resources for innovation and customer service.
Getting Started
For companies looking to adopt these technologies, start by assessing your current inefficiencies. Key questions include:
Are there recurring bottlenecks in administrative or compliance processes?
Does your organization have data transparency and security issues?
Are you prepared to integrate AI or tokenization into existing workflows?
Industries that benefit most from these innovations often exhibit high manual workloads, complex regulatory environments or significant cost liabilities. Businesses can begin with small-scale pilot programs to measure impacts and refine strategies.
Conclusion
Tokenization and AI-powered technologies offer incredible potential to improve efficiency, accountability and cost savings across sectors. I have implemented these in my practices to help businesses in many industries. These methods represent a new form of economic efficiency. Imagine the cost savings when prototypes become fully digital or our mailing system becomes obsolete due to streamlined AI and innovation.
This is not just about reducing costs; it’s about creating sustainable, innovative solutions that drive industries forward into a more equitable, efficient and cost-effective future.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Comments