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Although the global economic situation is not easy, companies strongly believe in innovative technologies and are eager to invest in them. McKinsey’s latest report, “Technology Trends Outlook 2024,” singles out today’s most important technology trends. There are 15 of them, and the fastest growing is generative artificial intelligence (gen AI), which also provides new opportunities in robotics or virtual reality.
1. Generative artificial intelligence
Generative AI has seen as much as 700% growth in Google searches from 2022 to 2023. This should come as no surprise, as this technology is changing the way content is created, as well as consumed. Based on the input provided, gen AI models are capable of creating a variety of content, such as text, images, music or even short videos. The potential of gen AI is enormous.
More and more organizations are using artificial intelligence in their operations, which often translates into financial benefits. According to a McKinsey global survey on artificial intelligence, 65% of respondents say their organizations regularly use AI in at least one business function. Using artificial intelligence has the potential to generate an annual value of $2.6 to $4.4 trillion.
However, the development of this technology raises concerns about bias, misinformation and false data generated by AI gene models. Therefore, it is extremely important to develop this technology responsibly, taking into account potential risks. Companies need to invest in appropriate solutions to mitigate them and effectively use the potential of generative AI.
2. Applied AI
The hype around generative artificial intelligence has contributed to a growing awareness of the value of applying AI. The use of AI analytics, including machine learning, image recognition and natural language processing, is growing. Companies are using the data these technologies provide to automate processes or make better business decisions, among other things.
McKinsey estimates that the use of these AI solutions could generate a global return of $11 trillion to $18 trillion annually. In the U.S. firm’s 2024 survey on the state of artificial intelligence, 67% of respondents said they expect their organizations to invest more in AI in the next three years. The survey underscores that organizations continue to see a return on investment in AI across a range of business areas.
3. Industrializing Machine Learning
As organizations move from experimenting with artificial intelligence to mass deployment, the focus is shifting to Machine Learning Operations (MLOps). This trend is about creating robust, scalable AI systems that can deliver consistent value in production environments. And the emergence of foundation model operations (FMOps) is particularly important for effectively managing large language models.
4. Next-generation software development
In 2023, there has been a significant development of AI-based tools that help with software development and DevOps automation (for example, infrastructure as code or enhanced integrated development environments). These solutions are not only revolutionizing the way engineers work across the software development life cycle (SDLC), from planning and testing to deployment and maintenance, but are also enabling less sophisticated professionals to create applications.
5. Digital trust and cybersecurity
The importance of digital trust and cybersecurity is increasing as companies implement innovative solutions (for example, cloud and edge computing, applied artificial intelligence or next-generation software development). While adopting these new technologies comes with great benefits for the organization, it also exposes the organization to cybersecurity and other risks, increasing the need for digital trust technologies. Building trust in data and technology management can also increase an organization’s productivity and improve customer relations.
6. Advanced connectivity
We live in a world of ubiquitous high-speed connectivity – 5G, satellite internet or 6G technology that is in its nascent stages. This trend is enabling the development of virtually everything from autonomous vehicles to smart cities. The challenge here is to responsibly implement these technologies and manage a complex ecosystem of suppliers and technologies.
7. Immersive-reality technologies
These technologies make it possible, for example, to add virtual objects to real spaces, or allow users to interact in virtual worlds. Industry leaders have taken a variety of approaches: from augmented reality (AR) to mixed reality (MR) to virtual reality (VR). And while consumers are converting to it at a slower pace than expected, the use cases for these technologies in enterprises are very promising, especially in training and design applications.
8. Cloud and edge computing
Enterprises are in the process of moving away from traditional data storage. The cloud enables enterprises to remotely host workloads and scale the consumption of computing and storage resources, resulting in better economies of scale, flexibility and speed of application deployment.
Edge computing provides lower latency, lower data transfer costs and better security (compared to the cloud). Cloud and edge computing strengthen AI capabilities – both for training and inference from underlying models, and will be a key driver for deployment of these technologies.
Balancing the two will allow enterprises to optimize resources, data privacy and security, thereby unlocking business value.
9. Quantum technologies
Although quantum computing is still in its early stages, it holds the promise of solving complex problems – ones that are beyond the reach of classical computers. Currently, engineers’ work is focused on achieving a practical quantum advantage and developing quantum-resistant cryptography. Advances in the development of this technology are of particular interest to representatives of the financial, pharmaceutical or logistics industries.
10. Future of robotics
Complex robotic systems are characterized by a high degree of sophistication in the automation of various physical tasks. The range of applications has increased in recent years due to both macroeconomic conditions and technological advances. Today’s robots being developed go beyond traditional applications in industry, healthcare, or even households. The development of more versatile general-purpose robots is therefore a trend to watch.
11. Future of mobility
Technological advances, combined with growing concerns about sustainability, have ushered in a new era of mobility. Autonomous and electric vehicles (AVs and EVs), urban air mobility and ACES technologies (autonomous driving, connectivity, electrification and shared/intelligent mobility) have become the focus of many organizations trying to revolutionize the transportation of people and goods while improving accessibility, safety and sustainability.
12. Future of bioengineering
Advances in bioscience and the computing power of computers have led to the development of many innovative products and services in industries such as healthcare, food production, agriculture, consumer products and energy. Bioengineering technologies could be worth more than $2 trillion in the next decade.
13. Future of space technology
The sharp decline in the cost of materials over the past decade has increased the viability and importance of space technologies. Lower costs – associated with a reduction in the size, weight and power requirements of satellites and launchers – have led to an increasing number of applications for these technologies. We have already witnessed the large-scale development of satellite Internet communications by Starlink.
14. Electrification and renewables
Electrification and renewable energy technologies are key to reducing global carbon emissions, according to the 2015 Paris Agreement. Achieving the agreement’s goals requires a 45% reduction in global CO2 emissions by 2030 and net zero emissions by 2050.
Many of the technologies required to achieve these goals already exist today and span the entire energy production, storage and distribution chain. These increasingly important solutions include renewables such as solar and wind power, clean energy sources (such as nuclear or hydrogen), sustainable fuels and bioenergy, as well as energy storage or distribution solutions.
15. Climate technologies beyond electrification and renewables
In addition to renewable energy, a number of technologies are being developed to address climate change. These include carbon capture and storage, advanced recycling technologies and engineered carbon dioxide removal solutions. Huge investments equal to about 0.1% of global annual GDP may be needed to close the gap between aspirations and commitments.
McKinsey’s full report, “Technology Trends Outlook 2024,” can be found here.
