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The interview points out the importance of the country’s involvement in innovative and digital initiatives, the lack of Bulgarian digitization programs, and the dependence on European funds. The main focus is placed on the need to improve education in the country and prepare people for the challenges of Industry 4.0. Mr. Vladimir Filipov expresses concern about this process and underscores that the state must play a central role in it, and that technological transformation cannot be stopped but requires suitable preparation of society.

The main aspect of the interview is that Bulgaria lacks a strategy for Industry 4.0, despite this technological advancement already transforming the society throughout the entire European Union. Mr. Vladimir Filipov notes that the industrial revolution will impact various sectors such as education, the labor market, and the economy, emphasizing the need for Bulgaria to develop appropriate strategies. He underscores the importance of coordination and technological progress, warning that Bulgaria could be left behind and miss out on opportunities to create value and innovations in the economy. Innovation plays a key role in success in the new economy.

Vladimir Filipov, CEO of NearSoft, emphasizes that the crisis management team for combating the coronavirus is focusing on physical measures such as uniform distribution and mask-wearing, without paying attention to the potential of digital technologies in limiting the virus’s spread. He shares examples from China where drones and facial recognition have been used to control people’s movements and mask usage. Filipov warns that Europe is seriously lagging in this regard and highlights the importance of the information field and information exchange between countries during the crisis. He expresses concern that Italy is not learning from successful practices in China, underscoring the significance of information technology and the opportunity for remote work in adapting companies to the new conditions.

The interview focus attention on the standards and strategies for implementing Industry 4.0 in Europe, including Bulgaria, are not seen as mere campaign efforts but are perceived as a potential revolution that could change the way we live and work. The administration, ministries, and universities in Bulgaria show interest and readiness to learn and collaborate with the private sector, which is considered crucial for a successful transformation. Highlights are on the importance of a swift response to global changes and the influence of technological advancements, also mentioning the competition, particularly with China, and its impact on the global stage. Furthermore, it’s point out the need for qualified personnel in the digital industry and underscores the importance of creating a domestic policy for digital transformation in Bulgaria.

Nearly half of artificial intelligence startups do not use the technology, often relying on human labor instead of technological solutions because collecting primary data for AI training is an expensive and challenging process. In the past, attempts with neural networks had limited success. Now, artificial intelligence is advancing, but many projects yield incorrect results due to poor primary data. Additionally, startups in Bulgaria lag behind in digital innovations, and businesses need to invest more in the digitization of processes.

The interview highlights that the European Union has the opportunity to take significant steps in technology development and adapt to Industry 4.0. It is also noted that two years ago, the EU had policies related to preparing for Industry 4.0, but Bulgaria was not part of this initiative and needs its own policy in this area. Emphasis is placed on the importance of developing administrative capacity and managerial policies aligned with innovations in production. Industry 4.0 has already transformed the global economic landscape, with its impact evident in events such as Brexit and protectionism in the United States.

The interview focuses on the emergence of Industry 4.0 and digitization in reality, as well as the growing interest in artificial intelligence and its impact on society. Two different perspectives are expressed during the discussion at The Next Big Thing conference. Rob Maechin from Endava anticipates that the development of artificial intelligence could lead to global changes and the replacement of human labor, while Vladimir Filipov from Nearsoft believes that technological promises often exceed reality and emphasizes the need for changes in education to address future challenges.

The interview draw attention to the fact that Industry 4.0 represents not just a technological revolution but also a change in thinking models. Bulgarian companies and entrepreneurs are showing interest and investing in this industry, with organization extending beyond Sofia, for instance, in Plovdiv. It’s not just the financial aspect but also the potential savings and improvements in business models that incentivize participation in Industry 4.0. Nevertheless, a significant problem in Bulgaria is not just the acquisition of technologies but also their proper utilization and the need for a change in organizational structure, which requires a new way of thinking and training.

Industry 4.0 will have a significant impact on various aspects of society, including the economy, education, social policy, and politics as a whole. Historical examples such as the Industrial Revolution and the introduction of computers and robots serve as examples of how such revolutions change leading industrial nations and global events. The questions that arise are based on what actions need to be taken to prepare for the upcoming changes, how these changes will affect people, and what the specific “impact” of Industry 4.0 will be in the future.

Vladimir Filipov, founder of NearSoft, presents Industry 4.0 as a revolution that will change the working process and production. It involves smart materials that carry information about their origin, what the next steps could be, what can be done with them, and many more autonomous systems that will move materials from one place to another without human intervention. There will also be a significant presence of new sensors connected to the Internet of Things, generating data. Companies must accelerate their digitization by creating digital streams that encompass all aspects of their activities.

Industry 4.0 represents both an opportunity and a risk for Bulgaria. As cyber-physical systems develop, production becomes so efficient that outsourcing of services loses its meaning. This could pose challenges for Bulgarian manufacturers, as a significant portion of the industry operates for the external market. The country must prepare by transitioning towards the development of software products to ensure a smooth transition and the utilization of accumulated knowledge in a positive direction.

Artificial intelligence is in its initial stage and cannot yet be compared to human understanding and adaptation in new situations. Despite some successes, such as in chess, AI cannot replace humans in all aspects of work. It is important to understand how to use technologies and how to create new models of thinking, as industrial revolutions bring both advantages and challenges.