Emerging tech- what to expect in the year ahead
By Francois Candelon, Managing Director and Senior Partner, BCG
A wide range of emerging technologies have taken to market for some years now, yet for a long time there seems to have been some apprehension towards adopting such tools.
It’s only been more recently that business leaders have begun to look to AI technology and the likes to solve their business problems, yet with little to no knowledge of where they belong.
The idea that businesses can only generate value from AI at the expense of their employees is outdated. Rather, what needs to be considered is the value that employees can gain using AI.
In fact, studies have shown companies whose employees gain value by using AI are almost six times as likely to generate significant financial returns from the technology than organisations that don’t.
This shows that there is significant value to be found when using AI and other advanced technologies – when deployed correctly. 64 percent of employees admit to seeing personal benefits from using AI in their jobs.
So, if organisations want to experience and benefit from this kind of business value, it is essential to consider them as tools for transformation. Here we consider three areas of emerging tech: AI, quantum and synthetic biology.
AI is a transformer
What does a tool for transformation look like? Once incumbents have understood that AI will pave the way for any substantial business growth in the years to come, they will look to AI players – or ‘transformers’ – that help them overcome the barriers that usually prevent adoption. These are:
- Technology – Bridging legacy gaps to customised AI
- Talent – Overcoming the AI skills deficit
- Change management – Reinventing ways of working.
Traditionally, companies have faced challenges when nurturing meaningful collaborations to maximise the kind of support they need to effectively put AI technology to good use. Only 1 in 5 have been able to find an AI provider that offers access to custom technology, along with additional support for talent, training around such technologies and change management.
The also generally prefer mature AI products, with 43% of early-stage incumbents naming lack of product readiness a roadblock to engaging with AI partners. In addition, the actual level of experience a business has with AI adoption presents different challenges – depending on whether they’re at the start of their AI transformation journey or are fairly advanced.
Organisational behavioural shifts at each stage are therefore necessary to transform the business in the best way possible. AI transformers must be seen as allies, not adversaries. From there, the business can begin to adopt a mindset of collaboration which will maximise the benefits around the deployment of emerging technology.
Quantum computing at the forefront
The quantum computer is ever closer to becoming a reality. It’s unclear exactly when the new dawn of quantum computing will break, but it could be within this decade.
Research from BCG finds that approximately 75 percent of the $1.3 billion private equity investment in quantum computing since 2018 has been on hardware development. Perhaps unsurprisingly, then, the speed at which we’ve made quantum hardware breakthroughs has accelerated.
So, what exactly should we expect in the coming years? The development of quantum computers enabling hackers to decipher public keys and break through the security of almost any encrypted device or system will no doubt present the next big cybersecurity threat – so the demand for post-quantum data security will skyrocket accordingly from both B2B and B2C customers, and time is running out (the ‘Years to Quantum’ or Y2Q countdown) for companies to be ready.
It’s vital that businesses act but acting too fast without proper planning could lead to setbacks rather than progress. Business leaders are advised to manage the complexity of trade-offs between the risks of not doing enough pre-emptively and the costs of spending too much to insure against a potential threat in the future.
Syn-bio is what’s next
Syn-bio applications, otherwise known as synthetic biology, are likely to disrupt industries that have accounted for as much as a third of global output in 2022, according to BCG studies.
As scientific development of the technology faces continuous transformation, it becomes equally difficult for businesses in multiple industries to adopt and experiment with syn-bio strategies amidst ever-changing industry dynamics.
An understanding of the processes and the strategic choices they need to make will mark out frontrunners, and businesses cannot rely solely on buying and selling relationships to find answers.- start-ups and industrial incumbents have to work together in harmony. The domain knowledge of industry giants coupled with start-up agility and knowledge of emerging technology will provide the magic formula to scale and commercialise syn-bio tech.
Like the adoption of AI, collaboration is key to deploying the right strategies. Some factors to consider include:
- Identify the constraints or challenges that syn-bio can help tackle.
- Complement their capabilities and assets by joining focused consortiums.
- Decide whether to enter into joint ventures.
- Decide the scale of their syn-bio M&A.
Overall, as with other technologies businesses should consider where their level of expertise lies and be open and willing to collaborate with expert talent with the skills to operate digital technologies.
This kind of collaborative approach is at the heart of adoption of any technology – and is a prerequisite for any business wanting to act strategically and see a return on investment in some of the most exciting areas of emerging tech.
Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.