Smart Factories, Dumb Policy? Managing Cybersecurity and Data Privacy Risks in the Industrial Internet of Things

Abstract

Interest is booming in the so-called Internet of Things (IoT). The Industrial Internet of Things (IIoT) is one application of this trend and involves the use of smart technologies in a manufac- turing context. Even though these applications hold the promise to revolutionize manufacturing, there are a number of outstand- ing cybersecurity and data privacy issues impacting the realiza- tion of the myriad benefits promised by IIoT proponents. This ar- ticle analyzes some of these pressing issues, focusing on: (1) critical infrastructure protection and cybersecurity due diligence, (2) trends in transatlantic data privacy protections, and (3) the regulation of new technologies like artificial intelligence (AI) and blockchain. The aticle concludes with a list of recommendations for state and federal policymakers to consider in an effort to harden the IIoT along with the supply chains critical to the con- tinued development of smart factories.