Where Will Enterprises Invest Next in 2023?
AI is crucial for enterprises as it enables them to harness data-driven insights and drive innovation for sustainable growth.
- Enterprises will continue investing in AI-driven technologies like autonomous systems and machine vision to enhance automation and improve operational efficiency throughout 2023.
- They will also prioritize investments in 5G networks, blockchain, and green technologies.
- This article explores the investment plans of enterprises post the dominance of AI in Q1 and Q2 2023.
In the first quarter of 2023, AI continued to experience significant advancements and played a crucial role in driving innovation across industries. As enterprises recognize the immense potential of AI technologies, they are expected to make strategic investments in various AI-related applications to drive innovation, enhance efficiency, and gain a competitive edge. In addition, many organizations have placed significant emphasis on investing in 5G networks, blockchain-based applications, and green technologies.
Let’s delve into some key areas where enterprises are likely to invest:
1. AI-powered automation
Enterprises will continue to invest in AI technologies to automate processes and tasks that are repetitive, time-consuming, and rule-based. Robotic process automation (RPA) will see increased adoption, enabling organizations to automate mundane tasks traditionally performed by humans. RPA software bots can streamline workflows, improve efficiency, reduce errors, and handle high-volume data processing.
By investing in RPA, enterprises can optimize resource allocation and enhance productivity. According to a February 2023 report by ‘Fortune Business Insights,’ the global RPA market stood at $13.86 billion in 2023 and is estimated to reach $50.50 billion by 2030.
2. Natural Language Processing (NLP) and conversational AI
The advancement of NLP and conversational AI technologies will continue driving investments in 2023. NLP focuses on enabling machines to understand and interpret human language, facilitating communication between humans and computers. Enterprises will invest in NLP to develop sophisticated language models like ChatGPT, sentiment analysis algorithms, and text summarization techniques.
Conversational AI, powered by NLP, will see investments across industries. Enterprises will develop chatbots, voice assistants, and virtual agents that can engage in natural language conversations with users. These conversational AI solutions will find applications in customer service, support, and information retrieval, allowing businesses to automate interactions, provide quick responses, and enhance customer satisfaction.
According to an April 2023 report by ‘Research Nester,’ top players in the NLP market include Apple, Amazon, Google, Meta, IBM, and so on. The report also reveals that North America will be the largest contributor to the market by the end of 2035, with a share of about 36%.
3. 5G networks
Another significant investment opportunity in 2023-2024 will be the adoption and utilization of 5G networks. The rollout of 5G networks provides faster speeds, lower latency, and increased network capacity, opening up new possibilities for enterprises.
The enhanced network capabilities of 5G will enable seamless integration of emerging technologies like IoT, augmented reality (AR), virtual reality (VR), and autonomous vehicles. Enterprises will invest in upgrading their networks to 5G, leveraging the technology’s potential to transform industries, improve productivity, and enable innovative applications.
As per a recent report by GSMA in February 2023, it is projected that over 30 countries will implement 5G deployments in 2023. The growth of 5G networks has been remarkable, with a recorded 229 commercial 5G networks globally as of January 2023.
Additionally, users have access to a wide range of options, as over 700 5G smartphone models are available in the market. Looking ahead, with the upcoming deployment of new 5G networks by countries worldwide, the number of 5G connections may substantially increase, potentially doubling within the next two years.
4. Sustainability and green technologies
Enterprises will invest in sustainable and green technologies as environmental concerns become more prominent. In addition to their corporate social responsibility, organizations recognize the importance of adopting energy-efficient infrastructure, renewable energy sources, and sustainable practices.
Investments in energy-efficient data centers, smart buildings, and green supply chains will increase. Enterprises will strive to reduce their carbon footprints, optimize resource utilization, and contribute to a greener future.
According to a June 2023 report by ReportLinker, the market for green technology and sustainability is projected to grow substantially, reaching an estimated value of $47.8 billion by 2028. Moreover, this market is anticipated to grow at a stunning rate of 21.9% from 2023 to 2028.
5. AI-enabled cybersecurity
In response to the growing sophistication of cyber threats, enterprises will invest in AI-driven cybersecurity solutions. AI algorithms can analyze vast amounts of data, detect anomalies, identify patterns, and provide real-time threat detection and response. Investments will be made in AI-powered security tools such as intrusion detection systems, behavior analytics, and threat intelligence platforms.
Enterprises will leverage AI to enhance their defense mechanisms against cyberattacks, including malware, phishing, and ransomware. By investing in AI-enabled cybersecurity, organizations can proactively identify and mitigate risks, reduce response times, and enhance overall security posture.
According to Statista’s January 2023 survey of cybersecurity experts working in companies across the U.K., Australia, and North America, 82% of respondents said that they plan to invest in AI-driven cybersecurity within the next two years, while 48% revealed that they would be implementing such measures by the end of 2023.
6. Blockchain-based applications
Enterprises will explore the potential of blockchain technology for enhancing transparency, security, and efficiency in various domains. For instance, DeFi, also known as decentralized finance, has emerged as a groundbreaking trend in blockchain technology. By leveraging blockchain’s capabilities, DeFi endeavors to offer traditional financial services in a manner that eliminates the necessity of intermediaries like banks.
In addition to DeFi, Blockchain-as-a-Service (BaaS) is witnessing an upward trend. With BaaS, companies can seamlessly integrate blockchain into their operations, enjoying a cost-effective and hassle-free approach. In an exciting development, Google is collaborating with Coinbase to enable the acceptance of cryptocurrency as a form of payment for its cloud services, further embracing the growing influence of digital currencies.
Moreover, Alphabet, the parent company of Google, has strategically invested in prominent blockchain companies such as Fireblocks, Dapper Labs, and Digital Currency Group through its venture capital arms.
In 2022, BlackRock initiated a service where its clients could directly invest in Bitcoin, marking a significant step into the world of cryptocurrencies. Additionally, BlackRock has assumed a significant role as the primary manager of reserves for the stablecoin known as USDC. This demonstrates BlackRock’s active involvement in digital assets and its recognition of the growing importance of cryptocurrencies in the financial landscape.
7. AI in healthcare
The healthcare industry will continue to witness substantial investments in AI technologies. AI can revolutionize healthcare by improving diagnostics, drug discovery, patient monitoring, and personalized medicine. AI algorithms can analyze medical images, electronic health records, and genomic data to aid in the early detection of diseases, recommend tailored treatment plans, and improve patient outcomes.
Investments in AI will be directed toward developing advanced medical imaging analysis tools, predictive analytics models, and AI-driven clinical decision support systems. These technologies will assist healthcare professionals in making accurate diagnoses, optimizing treatment strategies, and delivering personalized care to patients.
According to an October 2022 report published by GlobalData, the pharma sector is channeling its investments into digital media, AI, social media, big data, cloud computing, and cybersecurity. As the health sector emerged from the pandemic, digital transformation has been viewed as a tool to support business continuity. This is followed by AI-based innovations that are key to quick patient care.
8. AI for data analytics
Enterprises will invest in AI-driven data analytics to extract actionable insights from large volumes of data. Machine learning algorithms can analyze complex data patterns, identify correlations, and make predictions, enabling organizations to make data-driven decisions and optimize business processes. Investments will be made in AI-powered data analytics platforms, tools, and infrastructure.
Industries such as finance, marketing, supply chain management, and risk assessment will continue to benefit from AI-driven data analytics. Organizations can leverage AI to uncover hidden patterns, identify trends, and gain a competitive advantage in the market. Investments in AI for data analytics will empower enterprises to extract meaningful insights and drive business growth.
9. Edge computing
With the proliferation of IoT devices and the rise of edge computing, enterprises will invest in AI technologies that can process and analyze data at the edge. Edge AI enables real-time decision-making and reduces latency by processing data locally on edge devices, reducing the need for sending data to the cloud for analysis.
Investments will be made in AI models, algorithms, and hardware acceleration technologies that can be deployed at the edge. This will enable enterprises to leverage AI capabilities in industries such as manufacturing, transportation, smart cities, and remote monitoring. By investing in AI at the edge, organizations can unlock the potential of IoT devices, improve operational efficiency, and enable real-time insights and actions.
With the rising volumes of digital data, organizations are moving towards a decentralized computing model (i.e., edge computing), which allows analytics and decision intelligence to be built into edge applications.
In a recent Future Compute conference hosted by MIT Technology Review, corporate professionals emphasized the need to collect, process, and simulate data closest to where it’s being generated. For instance, it may include smart buildings, factory sites, automated cars, etc. This would allow the AI models to execute their processes directly on data at the edge rather than waiting for the data to be moved to the cloud, which could lead to latency and increase overall costs.
10. AI ethics and governance
As AI becomes more prevalent, enterprises will prioritize investments in AI ethics and governance frameworks. The responsible development and deployment of AI systems will be crucial for building trust, ensuring fairness, and mitigating biases. Investments will be made in tools, technologies, and processes to promote AI transparency, accountability, and ethical practices.
Enterprises will focus on developing AI governance frameworks, establishing data privacy and security guidelines, and implementing auditing mechanisms to assess AI system performance. By investing in AI ethics and governance, organizations can demonstrate their commitment to responsible AI use and build public trust.
Recently, more than 1000 AI experts from companies like Amazon, DeepMind, Google, Meta, and Microsoft appealed to temporarily pause AI development for at least six months. The call echoed the need for new AI ethics standards to keep a check on the risks posed by emerging powerful AI systems.
See More: European Union Drafts Law To Regulate Artificial Intelligence
Takeaway
To summarize, enterprises will maintain their investments in AI across diverse sectors in the latter part of 2023 and beyond while also giving prominence to investments in 5G networks, blockchain applications, and sustainable green technologies. These strategic investments will fuel innovation, enhance operational efficiency, elevate customer experiences, and ensure competitiveness in the dynamic realm of technology.
Where do you think enterprises will invest in the latter half of 2023? Comment below or let us know on Facebook, Twitter, or LinkedIn. We’d love to hear from you!
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