- We’ll experience more technological progress in the coming decade than we did in the preceding 100 years put together, says McKinsey.
- And 10 tech trends will dominate this shifting landscape.
- Understanding the effects of this change can help avoid nasty shocks to the system, for both individuals and organizations.
- Businesses that are making the most of advances in tech are also in a good place to make the most in terms of return on their investments.
The pace of change in the technology sector has always been brisk. As much as 10 years worth of growth in e-commerce may have been compressed into just three months in late 2019, according to McKinsey & Company, which predicts that we’ll experience more technological progress in the coming decade than we did in the preceding 100 years put together.
Any change can be unsettling and keeping pace with developments even more so. Part of the challenge is knowing which are the most significant changes and which are the ones that are less likely to bear fruit.
According to McKinsey, these are the 10 top technologies attracting the attention and funds of investors and technologists. They are also the ones most likely to feature prominently in the changing face of the modern workplace. Understanding the impact these tech trends will have on organizations and on the people whose jobs will be affected, could be key to avoiding any of the worst downsides of the disruption that may follow.
Top Tech Trends
1. Process automation and virtualization
Around half of all existing work activities could be automated in the next few decades, as next-level process automation and virtualization become more commonplace.
“By 2025, more than 50 billion devices will be connected to the Industrial Internet of Things (IIoT),” McKinsey predicts. Robots, automation, 3D-printing, and more will generate around 79.4 zettabytes of data per year.
2. The future of connectivity
Faster digital connections, powered by 5G and the IoT, have the potential to unlock economic activity. So much so that implementing faster connections in “mobility, healthcare, manufacturing and retail could increase global GDP by $1.2 trillion to $2 trillion by 2030.” 5G and IoT will be one of the most-watched tech trends for the next decade.
“Far-greater network availability and capability will drive broad shifts in the business landscape, from the digitization of manufacturing (through wireless control of mobile tools, machines and robots) to decentralized energy delivery and remote patient monitoring.”
3. Distributed infrastructure
By 2022, 70% of companies will be using hybrid-cloud or multi-cloud platforms as part of a distributed IT infrastructure. It will mean data and processing can be handled in the cloud but made accessible to devices faster.
“This tech trend will help companies boost their speed and agility, reduce complexity, save costs and strengthen their cybersecurity defenses,” McKinsey says.
4. Next-generation computing
Next-generation computing will, McKinsey believes, “help find answers to problems that have bedevilled science and society for years, unlocking unprecedented capabilities for businesses”.
It includes a host of far-reaching developments, from quantum AI to fully autonomous vehicles, and as such won’t be an immediate concern for all organizations. “Preparing for next-generation computing requires identifying whether you’re in a first-wave industry (such as finance, travel, logistics, global energy and materials, and advanced industries),” McKinsey says, or “whether your business depends on trade secrets and other data that must be safeguarded during the shift from current to quantum cryptography.”
5. Applied Artificial Intelligence (AI)
AI is one of the biggest tech trends. We are still only in the early days of the development of AI. As the technology becomes more sophisticated, it will be applied to further develop tech-based tools, such as training machines to recognize patterns, then act upon what it has detected.
By 2024, AI-generated speech will be behind more than 50% of people’s interactions with computers. Companies are still searching for ways to use AI effectively though, the consultancy says: “While any company can get good value from AI if it’s applied effectively and in a repeatable way, less than one-quarter of respondents report significant bottom-line impact.”
6. Future of programming
Get ready for Software 2.0, where neural networks and machine learning write code and create new software. “This tech trend makes possible the rapid scaling and diffusion of new data-rich, AI-driven applications,” according to McKinsey.
In part, it could see the creation of software applications far more powerful and capable than anything available today. But it will also make it possible for existing software and coding processes to be standardized and automated.
7. Trust architecture
In 2019, more than 8.5 billion data records were compromised. Despite advances in cybersecurity, criminals continue to redouble their efforts. Being a growing tech trend, trust architectures will help in the fight against cybercrime.
One approach to building a trust architecture is the use of distributed ledgers, such as blockchain. “In addition to lowering the risk of breaches, trust architectures reduce the cost of complying with security regulations, lower the operating and capital expenditures associated with cybersecurity, and enable more cost-efficient transactions, for instance, between buyers and sellers,” McKinsey notes.
How is the World Economic Forum ensuring that artificial intelligence is developed to benefit all stakeholders?
Artificial intelligence (AI) is impacting all aspects of society — homes, businesses, schools and even public spaces. But as the technology rapidly advances, multistakeholder collaboration is required to optimize accountability, transparency, privacy and impartiality.
The World Economic Forum's Platform for Shaping the Future of Technology Governance: Artificial Intelligence and Machine Learning is bringing together diverse perspectives to drive innovation and create trust.
- One area of work that is well-positioned to take advantage of AI is Human Resources — including hiring, retaining talent, training, benefits and employee satisfaction. The Forum has created a toolkit Human-Centred Artificial Intelligence for Human Resources to promote positive and ethical human-centred use of AI for organizations, workers and society.
- Children and young people today grow up in an increasingly digital age in which technology pervades every aspect of their lives. From robotic toys and social media to the classroom and home, AI is part of life. By developing AI standards for children, the Forum is working with a range of stakeholders to create actionable guidelines to educate, empower and protect children and youth in the age of AI.
- The potential dangers of AI could also impact wider society. To mitigate the risks, the Forum is bringing together over 100 companies, governments, civil society organizations and academic institutions in the Global AI Action Alliance to accelerate the adoption of responsible AI in the global public interest.
- AI is one of the most important technologies for business. To ensure C-suite executives understand its possibilities and risks, the Forum created the Empowering AI Leadership: AI C-Suite Toolkit, which provides practical tools to help them comprehend AI’s impact on their roles and make informed decisions on AI strategy, projects and implementations.
- Shaping the way AI is integrated into procurement processes in the public sector will help define best practice which can be applied throughout the private sector. The Forum has created a set of recommendations designed to encourage wide adoption, which will evolve with insights from a range of trials.
- The Centre for the Fourth Industrial Revolution Rwanda worked with the Ministry of Information, Communication Technology and Innovation to promote the adoption of new technologies in the country, driving innovation on data policy and AI – particularly in healthcare.
Contact us for more information on how to get involved.
8. Bio Revolution
There is a “confluence of advances in biological science” that “promises a significant impact on economies and our lives and will affect industries from health and agriculture to consumer goods, energy and materials.”
Propelled by AI, automation and DNA sequencing, the bio revolution promises the development of gene-therapies, hyper-personalized medicines and genetics-based guidance on food and exercise. These tech trends will create new markets but will also raise some important ethical questions. “Organizations need to assess their bQ or biological quotient – the extent to which they understand biological science and its implications. They should then sort out the resources they need to allocate to biological technologies and capabilities and whether to integrate those into their existing R&D or partner with science-based start-ups,” McKinsey says.
9. Next-generation materials
Developments in materials science have the potential to transform multiple market sectors, including pharma, energy, transportation, health, semiconductors and manufacturing. Such materials include graphene – a single layer of carbon atoms arranged in a honeycomb lattice configuration, which is around 200 times stronger than steel, despite its incredible thinness. It is also a very efficient conductor and promises to revolutionize semiconductor performance. Another is molybdenum disulfide – nanoparticles of which are already being used in flexible electronics.
“By changing the economics of a wide range of products and services, next-generation materials with significantly higher efficiency in many as-yet-untouched application areas may well change industry economics and reconfigure companies within them,” McKinsey says.
10. Future of clean tech trends
Renewable energy, cleaner/greener transport, energy-efficient buildings, and sustainable water consumption are at the heart of clean tech trends. As the costs associated with clean-tech fall, their use becomes more widespread and their disruption is felt across a growing number of industries
“Companies must keep pace with emerging business-building opportunities by designing operational-improvement programmes relating to technology development, procurement, manufacturing and cost reduction,” McKinsey believes. “Advancing clean technologies also promises an abundant supply of green energy to sustain exponential technology growth, for instance, in high-power computing.”