In the world of business, the race to stay ahead is a never-ending one. And in the technology landscape, it's a full-on sprint! That's why CIOs are constantly on the lookout for emerging technologies to give their organizations the edge.
According to the experts at Gartner, global spending on information technology is set to hit $4.5 trillion in 2023. A sizable chunk of that budget is earmarked for some of the hottest emerging technologies of the moment, including artificial intelligence(AI), machine learning(ML), blockchain, and 5G wireless networks.
For CIOs, keeping up with the trends is key to success. This year, they'll need to find a balance between enabling new services to give their businesses a competitive edge and cutting costs to keep the balance sheet in check.
Here are some of the hot technology investments CIOs and other IT leaders are making in 2023:
If you've ever talked to a chatbot or asked Siri for directions, you've already experienced natural language processing (NLP). It's the technology that enables computers to understand human language and respond appropriately, making it an incredibly important field in the tech industry.
NLP is becoming increasingly important in fields such as healthcare, finance, and customer service. For example, in healthcare, NLP can help analyze medical records and identify potential health risks. In finance, it can be used to analyze customer feedback and identify areas for improvement. And in customer service, NLP-powered chatbots can help quickly and accurately respond to customer inquiries.
But NLP is more than just chatbots and customer service. It's also being used for more advanced applications, such as sentiment analysis and language translation. In fact, NLP is already being used in language translation apps like Google Translate, helping people communicate with each other across different languages.
As the demand for intelligent systems that can understand and respond to human language continues to grow, the importance of NLP will only increase. Companies that invest in NLP technology will have an advantage, enabling them to automate tasks, improve customer experiences, and gain valuable insights from data.
2. Edge Intelligence
Edge Intelligence is transforming the way we collect, process, and analyze data. Rather than sending all the data to centralized cloud servers for processing and analytics, Edge Intelligence brings it closer to the source of the data. This allows organizations to gain real-time insights and decision-making capabilities.
According to a report by MarketsandMarkets, the edge computing market is expected to grow from $3.6 billion in 2020 to $15.7 billion by 2025, with a compound annual growth rate (CAGR) of 34.1%.
For instance, in the manufacturing industry, manufacturers are now able to collect vast amounts of data on the production process in real-time with the use of sensors and other IoT devices. By implementing Edge Intelligence, this data can be processed and analyzed on-site, enabling manufacturers to quickly identify issues or malfunctions and make adjustments to improve productivity and reduce downtime.
3. Intelligent Agents
Imagine having a personal assistant that can anticipate your needs, make appointments, answer your questions, and even order groceries on your behalf - all while you focus on the more important things in life. That's the kind of power that intelligent agents can bring to the table.
The importance of IAs lies in their ability to enhance productivity and efficiency in various industries. For example, in healthcare, these smart agents can help doctors make more informed decisions by analyzing patient data and suggesting treatment options. In finance, IAs can assist with risk management and fraud detection. Moreover, IAs can help organizations provide better customer service by offering self-service options, 24/7 support, and personalized interactions. While the potential for IAs is limitless, the technology is still maturing.
According to a report by Gartner, By 2025, 50% of digital workers will use an intelligent assistant (IA) or a customer service bot to support daily work tasks, up from 25% in 2021. This shows that the adoption of IAs is expected to grow significantly in the coming years, indicating the increasing importance of this technology in the business world.
Suppose you're running a company that relies on AI to make important decisions. It could be anything from hiring candidates to predicting which products will sell best next quarter. But what if the AI's decision-making process is a complete black box, and no one, not even the developers, knows how it makes decisions? How can you trust that the AI is making the right decisions?
That's where XAI comes in. It's all about making the decision-making process of AI transparent, so you can understand how and why it's making the decisions it's making. This helps build trust in AI, which is crucial for companies that rely on it to make important decisions.
For example, let's say you're a bank using AI to approve loan applications. With XAI, you can see exactly how the AI arrived at its decision, taking into account things like credit scores, income, and employment history. If the AI rejects an application, you can see the specific factors that led to the rejection, and make adjustments accordingly.
According to Gartner, by 2024, more than 75% of large enterprises will hire AI behavior forensic, privacy, and customer trust specialists to reduce brand and reputation risk. Additionally, the market for XAI is expected to reach $2.5 billion by 2024.
5. Cloud-native Computing
As more companies shift their operations to the cloud, cloud-native computing is emerging as a key technology for modernizing software applications. By building applications specifically, to run in cloud environments, businesses can speed up the software development cycle. This allows organizations to rapidly develop and test new applications, and quickly bring them to market. With cloud-native computing, businesses can also take advantage of the scalability and flexibility of the cloud to easily expand their computing resources as needed.
A report revealed that 65% of companies are adopting cloud-native computing, and 16% plan to adopt it shortly.
For example, a retail company might use cloud-native computing to build an online storefront that can handle large spikes in traffic during peak shopping periods. By leveraging cloud-based computing resources, the retailer can ensure that their website remains responsive and available to customers, even during high-demand periods.
6. Zero Trust Models
Imagine running a business that relies heavily on the cloud to store and access sensitive data. Your employees access this data from various locations and devices, including personal laptops and smartphones. How do you ensure that your data remains secure from cyber threats, especially with the rise of remote work? This is where ZT models come into the scenario.
The model applies zero-trust security at the edge of the network, meaning that it verifies every user, device, and application attempting to access the network, regardless of location.
This model shifts the focus from traditional perimeter-based security to a more dynamic approach that implements granular security policies and offers a level of protection and flexibility that was previously unattainable.
For example, a bank can use ZTSM to authenticate the identity of a user accessing their mobile banking app and then grant them access to specific financial services based on their role and level of authorization. With the ZT model, the bank can enforce security policies and monitor user activity in real-time, providing a more secure and trusted environment for financial transactions. This helps to build customer trust and confidence in the bank's services, ultimately leading to increased customer loyalty and revenue.
7. Web 3.0
Visualize a world where the internet isn't just a place to browse, but a platform for decentralized applications that offer more transparency, security, and control. That's the vision of Web3, a next-generation internet that is built on blockchain technology that aims to transform the way we interact with data, assets, and each other.
One of the key features of Web3 is the ability to create decentralized applications (dApps) that operate on a peer-to-peer network, rather than relying on centralized servers. These dApps can offer a range of services, from digital marketplaces to social networks, and are powered by smart contracts that automatically execute transactions based on predefined rules.
One example of Web3 in action is NFTs, or non-fungible tokens, which are unique digital assets that can be bought, sold, and traded on a blockchain. These tokens are being used to create new business models in industries like art, music, and gaming, where creators can monetize their work directly and fans can support them in a decentralized way.
For instance, Fortnite, one of the most popular video games in the world, with millions of players worldwide. By leveraging Web3 technology, it offers players more control over their in-game assets and provides a more engaging gaming experience.
Players can use NFTs within the game which allows them to purchase unique digital assets, such as skins or weapons. In addition to NFTs, it also allows players to purchase in-game items using cryptocurrencies such as Bitcoin or Ethereum. This provides a more secure and decentralized way of making transactions within the game.
Furthermore, Fortnite has also explored the potential of decentralized autonomous organizations (DAOs) in gaming. In 2021, the game introduced a new feature called the "Fortnite Creative Council", which is essentially a DAO that allows players to vote on new features and updates within the game. This provides a more democratic approach to game development and allows players to have a say in the future direction of the game.
8. Smart Bots
Unlike IAs such as Alexa or Siri, which typically rely on pre-defined rules and data to operate, Smart bots are designed to simulate human-like conversation in real-time. These are not limited to specific tasks and they can handle a wide range of conversations and queries.
It uses NLP and ML algorithms to understand and respond to user prompts and learn from past interactions to improve its responses over time.
These bots are not just limited to text-based interactions, they can also leverage voice recognition technology to create voice-enabled chatbots, which are becoming increasingly popular in industries such as healthcare and banking.
For example, a voice-enabled Turing bot could help patients schedule appointments, check medication schedules, and even provide medical advice based on symptoms.
The applications of Turing bots are limited only by our imaginations, and as the technology continues to evolve and mature, we can expect to see even more innovative and creative uses emerge.
9. Cross Reality
Imagine being able to step into a virtual world and explore a new space or interact with digital objects as if they were right in front of you. That's the magic of Cross Reality or Extended Reality (XR), a cutting-edge technology that blends the digital and physical worlds to create immersive experiences.
XR encompasses a range of technologies, including virtual reality (VR), augmented reality (AR), and mixed reality (MR). VR creates a fully immersive digital environment, while AR overlays digital content onto the real world, and MR merges both virtual and real-world elements.
Source: ARreverie Technology
For example, in the retail industry, by leveraging AR technology, retailers can offer customers the ability to virtually try on clothing or see how furniture would look in their homes before making a purchase. This not only enhances the shopping experience but also reduces the likelihood of returns, ultimately driving sales and customer satisfaction.
With XR, businesses can revolutionize the way they engage with customers, employees, and partners, opening up new opportunities for collaboration, training, and entertainment.
10. Privacy-Enhancing Technologies
In an age where data is king, it's no wonder that privacy has become a hot topic. But while the collection and analysis of data can lead to incredible insights, it also creates a risk for individuals and businesses alike. That's where Privacy-enhancing technologies(PET) come in.
One example of privacy-enhancing technology is differential privacy. This method involves adding noise to data sets to prevent individuals from being identified, while still allowing for accurate analysis. Another example is homomorphic encryption, which allows for encrypted data to be analyzed without being decrypted, keeping the data secure.
For example, let's say a healthcare organization wants to conduct research on a new drug. They can use privacy-preserving technologies to analyze patient data without compromising personal information. This allows the organization to gather important insights while still protecting the privacy of the patients involved.
Revolutionizing the Business Landscape
However, it’s not just about staying trendy– investing in emerging technologies can also lead to improved business efficiency, increased cybersecurity, and enhanced customer experiences. As businesses continue to adjust to unpredictable economic conditions, CIOs must be ready to adapt and take advantage of tech trends that offer opportunities for revenue growth.
So if you want to evaluate the impact of these emerging technologies on your business, then explore our technology consulting services and connect with our experts. Our dedicated team will develop a roadmap to achieve your strategic goals, from expanding your customer base to maximizing value from data.