The concept that defines the year 2023 is generative AI, or gen AI. This technology is rapidly sweeping through the business community, with new developments constantly making headlines. However, it is important for business leaders to not be distracted by the excitement around gen AI and to focus on other core business imperatives. Some underlying ideas that are shaping the modern business landscape include the importance of rewiring companies, the rise of builders who use software to create value, the dominance of scalers in the market, the compounding value of digital and AI, the need for continuous digital and AI transformations, the significance of data for generating value, the impact of gen AI on the workforce, the agile functioning of businesses, the shift towards IT as a service, the focus on creating value in digital and AI transformations, and the importance of testing and adaptability in the face of constant change. Overall, 2023 is a year of transformation and integration of digital and AI technologies into businesses.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Generative AI (gen AI) | Impact on how we live and work | AI advances, lower costs for innovation | Technological advancements and cost reduction |
| Builders are eating the world | Cost of building new products | More citizen builders, faster and cheaper | Easier-to-use tools and lower costs |
| Innovators dominate headlines | Importance of scaling | Focus on specific processes for scale | Focusing on scaling, not just innovation |
| Leaders master the digital ‘More law’ | Creates competitive advantage | Distance between leaders and competitors grows | Integrating digital and AI for value creation |
| Digital and AI leaders must be forever transformers | Continuous evolution | Incorporating technology quickly | Evolving with technology, blurring distinctions |
| Data is knowledge | Requirement for AI strategy | AI and business strategies built on data | Harnessing and leveraging data |
| A workforce with gen AI ‘superpowers’ | Human development breakthrough | Focus on learning and upskilling | Human adaptation to gen AI and technology |
| Every company will become a ‘neural business’ | Agile expansion | Agile operating model for speed and growth | Small teams connected for innovation and adaptability |
| IT as a service | Innovation and digitization | Distributed IT, automated services | Tech shift from control to innovation |
| The name of the game is the same | Building value | Digital initiatives with significant value | Focus on value, not just technology |
| The best companies will be the best testers | Adaptability and testing | Quicker, cheaper, and more frequent testing | Technological advancements and easier tools |