According to Gartner, IT investment worldwide will rise by around 5% to $4.6 trillion in 2023 as firms speed up the pace of digital transformation in response to the pandemic and economic uncertainties. The rapid pace of change can be attributed to the broad adoption of hybrid work arrangements and the disruptions in the market that COVID-19 sparked.
Economic uncertainty will shift the backdrop for technology investments, raising spending in some sectors and driving decreases in others.
These technology trends for the coming year come at a time when spending on digital transformation is on the rise, and new technologies are being introduced.
1. AI everywhere
In the year 2023, artificial intelligence will finally be implemented in businesses. With no-code AI’s simple drag-and-drop interfaces, any company can tap into its potential to develop superior AI-powered goods and services. This pattern is already visible in the commercial sector.
More and more, you’ll notice that the emails/messages you receive are in line with your previous activities. Stitch Fix employs AI-enabled recommendation algorithms to send its customers stylish clothing that fits and flatters them. Slots Play Casinos sends its readers recommendations for games and bonuses that fit what the reader has done in the past. Netflix recommends programs that fit in line with those you’ve watched already. The list is endless.
In 2023, there will also be a significant rise in contactless, automated shopping and delivery. The use of AI will streamline the purchasing and shipping processes for customers.
AI will augment virtually every role in every industry and every business process. Convenience trends like BOPAC, BOPIS, and BORIS will become the norm as more stores turn to AI to manage and automate the complex inventory management operations behind the scenes.
More and more people working in retail will have to get used to collaborating with robots as artificial intelligence powers the latest autonomous delivery efforts being tested and implemented by stores.
2. Quantum computing
The processing power and speed of quantum computers are exponentially greater than those of traditional computers.
Extraordinary progress in fields as diverse as pharmaceutical research, nuclear power, renewable energy, materials science, climate change adaptation, sustainable agriculture, and more are anticipated.
The United States, Russia, China, and Japan, together with tech giants IBM, Alibaba, Google, and Microsoft, are all competing for dominance. Visa, JP Morgan, and Volkswagen are just a few of the companies dabbling with quantum technology’s early stages of development.
3. Datafication
To “datafy” something implies modifying it into a data-driven gadget or piece of software. Datafication, then, refers to the process through which traditionally human tasks are automated through the use of data. Data is essential for the operation of every modern device, appliance, and service, from mobile phones to AI-enabled factory machinery to office computers and home smart devices. As a result, there has been a rise in demand for strict data security measures.
As a result of datafication, several formerly unneeded occupations in the IT sector have become more important than ever. In addition, anyone with a firm grasp of technology might find work in this sector by gaining credentials in data-related fields.
4. Integrating the virtual with the real
The gap between the virtual and the real is narrowing, and this tendency will accelerate in 2023. This integration comprises two parts: digital twin technology and additive manufacturing. Digital twins can be created as digital simulations of real-world processes to try out novel concepts in a risk-free setting. Digital twins allow designers and engineers to duplicate real-world products within virtual environments and test them in any imaginable conditions without the expensive expenditures of doing actual studies.
Everything from manufacturing plants to automobiles to precise healthcare will have digital twins by 2023. Engineers can modify and fine-tune components in a virtual environment before printing them out in the physical world using technology like 3D printing.
5. Extended reality
Virtual reality, mixed reality, augmented reality, and other similar technology all fall under the umbrella term “extended reality.” It’s a big deal in IT right now because most people want to escape the actual “limits” of the world.
The medical and gaming communities and the retail and modeling industries have taken a keen interest in this technology due to its ability to simulate situations in which physical presence is unnecessary.
6. Blockchain and homomorphic encryption
There are currently other breakthroughs that help with cybersecurity, including blockchain and homomorphic encryption, that are on par with AI.
Risks of fraud and attacks can be mitigated by implementing a blockchain’s security measures, which include assurance services, cybersecurity standards, and best practices for the industry. These solutions aim to safeguard information kept in a particular blockchain, but they also apply to other data storage systems. Risks are evaluated, the blockchain ecosystem is analyzed, and threats to information systems and digital assets are identified using these technologies.
Homomorphic encryption aims to produce ciphertext (data encrypted using a cryptographic algorithm) that is mathematically equivalent to the plaintext it was encrypted from. It’s used when complex mathematical operations must be done on encrypted files without jeopardizing security.
Ninety percent of respondents to an IEEE survey projected that homomorphic encryption technology would be the most consequential in 2023.
The bottom line
This year will confirm if nothing else, that the world of technology never stands still for long.
As tech companies respond to increasing economic instability, further seismic shifts can be expected in the global marketplace. In contrast, astonishing breakthroughs will develop at a breakneck pace in several areas.