It is not hard to see that we are in a period of great economic uncertainty, which means companies will look for ways to cut costs. However, the good news is that, for the most part, signs point to an increase in IT spend in 2023, and that’s true whether you talk to CIOs, enterprise companies or analysts. Gartner’s predictions comes in as well: an increase of 5.1% in global IT spend in 2023, which is up from 0.8% growth in 2022. So what are the most important trends that business leaders should be prepared for? Let’s discover the ten essential tech trends should be following in 2023.
1. Cloud Platforms
Cloud adoption has been a major component of digital transformation for over a decade, and 2023 will almost certainly prove to be another year for more sophisticated, industry and organization-specific cloud adoption strategies. By combining SaaS, PaaS and IaaS with customized functionality, Industry Cloud Platforms may prove to be the most consequential step toward cloud adoption to date. Enterprises can use the packaged capabilities of industry cloud platforms as building blocks to compose unique and differentiating digital business initiatives, providing agility, innovation and reduced time to market, while avoiding lock-in.
According to Grand View Research, the global cloud computing market size is expected to reach USD 1,554.94 billion by 2030, registering a CAGR of 15.7%. By 2027, Gartner predicts that more than 50% of enterprises will use industry cloud platforms to accelerate their business initiatives.
2. Artificial Intelligent
In 2023, artificial intelligence will become real in organizations. No-code AI, with easy drag-and-drop interfaces, will enable any business to leverage its power to create more intelligent products and services. Some retail companies have already adopted this trend to enhance customer experiences and boost growth. Take Stitch Fix as an example. This start-up uses AI-enable algorithms to recommend clothes to its customers that match their sizes and tastes. AI is also expected to be the key making it easier for contactless, autonomous shopping and delivery trends in the future.
AI not only benefits customers, but also is an amazing tool for companies to optimize their operations. AI will also augment nearly every job in every business process across industries. More retailers will use AI to manage and automate the complex inventory management processes that happen behind the scenes, so convenience trends like buy-online-pickup-at-curbside (BOPAC), buy-online-pickup-in-store (BOPIS), and buy-online-return-in-store (BORIS), will become standard.
Adapted AI, which is the next evolutionary step, combining artificial intelligence with a more advanced and responsive way of autonomously learning, needs to be considered, according to Gartner. Adaptive AI systems aim to continuously retrain models and learn within runtime and development environments based on new data to adapt quickly to changes in real-world circumstances that were not foreseen or available during initial development. They use real-time feedback to change their learning dynamically and adjust goals. This makes them suitable for operations where rapid changes in the external environment or changing enterprise goals require an optimized response.
3. Metaverse
Metaverse is the next one on the list. Metaverse, along with AR and VR technology will continue to advance. Experts predict that the metaverse become shorthand for a more immersive internet where we’ll be able to work, play, and socialize on a persistent platform. One area to watch is the work environment in the metaverse – in 2023, where people can talk, brainstorm, a co-create together.
Gartner expects that a complete metaverse will be device-independent and won’t be owned by a single vendor. It will have a virtual economy of itself, enabled by digital currencies and non-fungible tokens (NFTs). Gartner predicts that over 40% of large organizations worldwide will use a combination of Web3, AR cloud, and digital twins in metaverse-based projects aimed at increasing revenue, by 2027.
4. Web3
Web3 is being touted as the future of the internet. Web3 is a convenient shorthand for the project of rewiring how the web works, using blockchain to change how information is stored, shared, and owned. In theory, a blockchain-based web could shatter the monopolies on who controls information, who makes money, and even how networks and corporations work. Advocates argue that Web3 will create new economies, new classes of products, and new services online; that it will return democracy to the web; and that is going to define the next era of the internet. Like the Marvel villain Thanos, Web3 is inevitable.
Blockchain technology will also advance significantly in 2023 as companies create more decentralized products and services. For example, at the moment, we’re storing everything in the cloud — but if we decentralize data storage and encrypt that data using blockchain, our information will not only be safer, but we’ll have innovative ways to access and analyze it.
NFTs will become more usable and practical in the new year. For example, NFT tickets to concerts will potentially give you access to backstage experiences and memorabilia. NFTs might be the keys we use to interact with many of the digital products and services we buy, or they could represent contracts we enter into with other parties.
5. Sustainable Technologies
Until recently, the tech world has been single-mindedly fixated on boosting the power of new technologies. Many (if not most) of us are addicted to technology like smartphones, tablets, and computers, whose chips are made from rare earth components. We’re also using cloud services, which still run in huge data centers that consume vast amount of energy. Tech becomes increasingly integrated into every facet of our lives.
“However, in 2023, delivering technology will not be enough. These themes are impacted by environmental, social, and governance (ESG) expectations and regulations, which translate into the shared responsibility to apply sustainable technologies. Every technology investment will need to be set off against its impact on the environment, keeping future generations in mind. ‘Sustainable by default’ as an objective requires sustainable technology,” said David Groombridge, Distinguished VP Analyst at Gartner.
A recent Gartner survey shows that environmental and social changes are now a top three priority for investors, after profit and revenue. This means that executives must invest more in innovative solutions that are designed to address ESG demand to meet sustainability goals. To do this, organizations need a new sustainable technology framework that increases the energy and material efficiency of IT services, enables enterprise sustainability through technologies like traceability, analytics, renewable energy and AI, and deploys IT solutions to help customers achieve their own sustainability goals.
6. Superapps
A superapp combines the features of an app, a platform and an ecosystem in one application. It not only has its own set of functionalities, but it also provides a platform for third parties to develop and publish their own mini-apps on. An end user can activate micro or min-apps within the superapp, allowing for a more personalized app experience.
By 2027, Gartner predicts that more than 50% of the global population will be daily active users of multiple superapps. “Although most examples of superapps are mobile apps, the concept can also be applied to desktop client applications, such as Microsoft Teams and Slack, with the key being that a superapp can consolidate and replace multiple apps for customer or employee use,” said Karamouzis.
7. Digital Immune System
The past few years have seen an unparalleled focus on risk, both in the physical and digital world. Cybersecurity concerns are increasingly acute, as data breaches and other cybersecurity concerns are becoming increasingly sophisticated.
Fortunately, methods for protecting against online criminals, spammers and other unwanted online pests are improving in sophistication as well. Through observation, automation and the latest developments in design, a robust digital immune system can significantly mitigate operational and security risks.
Gartner predicts that by 2025, organizations that invest in building digital immunity will reduce system downtime by up to 80% – and that translates directly into higher revenue.
8. Quantum Process
Right now, there is a worldwide race to develop quantum computing at scale. Quantum computing, which uses subatomic particles to create new ways of processing and storing information, is a technological leap that’s expected to bring us computers capable of operating a trillion times more quickly than the fastest traditional processors available today.
The potential danger of quantum computing is that it could render our current encryption practices useless — so any nation that develops quantum computing at scale could break the encryption of other nations, businesses, security systems, and more. This is a trend to watch carefully in 2023 as countries like the US, UK, China, and Russia pour money into developing quantum computing technology.
9. Wifi 6 and 5G
In our hyperconnected era, the number of networked devices may reach 29.3 billion by 2023—more than three devices for every human being on the planet. Next-generation wireless technologies such as 5G and Wi-Fi 6 are poised to become a crucial part of the networks that link machines and people.
Advanced wireless is foundational to innovation and transformation. As the latest in a decades-long evolution of wireless technologies, 5G and Wi-Fi 6 promise performance and operational improvements over previous generations.
A Deloitte’s study discovers that mor than 90% Indian executives believe that 5G will become a key priority three years from now, overtaking previous network generations.
The research also shows that 88% Indian executives that advanced wireless services will substantially transform their organization within three years.
10. Robots
In 2023, robots will become even more like humans — in appearance and capability. These types of robots will be used in the real world as event greeters, bartenders, concierges, and companions for older adults. They’ll also perform complex tasks in warehouses and factories as they work alongside humans in manufacturing and logistics.
One company is working hard to create a human-like robot that will work in our homes. At Tesla AI Day in September 2022, Elon Musk revealed two Optimus humanoid robot prototypes, and said the company would be ready to take orders within the next 3 to 5 years. The robot can perform simple tasks like lifting items and watering plants — so perhaps soon we’ll be able to have “robot butlers” that help around in the house.
Next steps
Whether you’re looking for ways to optimize your business or looking to undergo a full digital transformation, staying up to date on the latest tech trends is essential for forward-thinking business leaders and enterpreneurs.
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