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Summary

This article from McKinsey Technology Council provides an outlook on the technology trends for 2023. It discusses the resurgence of enthusiasm for technology’s potential, as well as the most significant trends and the associated investment, innovation, and talent dynamics. A new trend, generative AI, was added this year. The article also discusses the importance of talent in developing a competitive edge, and the talent crunch in certain high-tech fields. It provides insights on how companies can adjust roles or upskill individuals to meet their tailored job requirements, as well as how to focus on a portfolio-oriented investment across tech trends.

Q&As

What is the McKinsey Technology Council and what is their purpose?
The McKinsey Technology Council is a group of external members that identifies and interprets the most significant technology trends unfolding today. Their purpose is to help executives track the latest developments and plan ahead by developing an understanding of potential use cases and pinpointing the critical skills needed as they hire or upskill talent to bring these opportunities to fruition.

What are the five tangible measures of activity used to assess the development of each technology trend?
The five tangible measures of activity used to assess the development of each technology trend are search engine queries, news publications, patents, research publications, and investment.

What potential does generative AI have for transformative business impact?
Generative AI has high potential and applicability across most industries and is estimated to add as much as $4.4 trillion in economic value from a combination of specific use cases and more diffuse uses.

What is the current gap between the demand for talent and available talent in the tech trend field?
There is a wide gap between the demand for people with the skills needed to capture value from the tech trends and available talent: our survey of 3.5 million job postings in these tech trends found that many of the skills in greatest demand have less than half as many qualified practitioners per posting as the global average.

How can companies capitalize on both established and emerging technologies to propel innovation and achieve sustainable growth?
Companies should focus on a portfolio-oriented investment across the tech trends most important to their business. They should also adjust roles or upskill individuals to meet their tailored job requirements and be on top of the talent market, ready to respond to notable shifts and to deliver a strong value proposition to the technologists they hope to hire and retain.

AI Comments

👍 This new report from the McKinsey Technology Council is a great resource for executives looking to stay up-to-date with the latest tech trends and understand the potential of generative AI. The research provides data on talent supply-and-demand dynamics for the roles of most relevance to each trend, so executives can plan ahead by developing an understanding of potential use cases and pinpointing the critical skills needed.

👎 While the report provides a comprehensive overview of the tech trends, it fails to address the potential misuse of these technologies and the risks that come with them. Companies should also consider the ethical implications of investing in these technologies and preparing for the potential consequences.

AI Discussion

Me: It's a report from McKinsey Technology Council on the technology trends of 2023. It's 81 pages long. They identify and interpret the most significant technology trends and analyze their quantitative measures of interest, innovation, and investment. They also include an analysis of talent supply-and-demand dynamics for the roles that are most relevant to each trend.

Friend: Wow, that sounds really comprehensive. What are some of the implications of this report?

Me: Well, the report highlights the potential for generative AI to add as much as $4.4 trillion in economic value. It also suggests that trust architectures and digital identity are growing the most out of last year's 14 trends. Additionally, the report emphasizes the importance of tech talent and that there's a wide gap between the demand for people with the skills needed to capture value from the tech trends and available talent. This highlights the need for companies to adjust roles or upskill individuals to meet their tailored job requirements. Lastly, the report suggests that companies should focus on a portfolio-oriented investment across the tech trends most important to their business.

Action items

Research the different technology trends identified in the article and assess their potential for value creation in your industry.
Develop a portfolio-oriented investment strategy across the tech trends most important to your business.
Monitor the talent market and adjust roles or upskill individuals to meet tailored job requirements.

Technical terms

Generative AI: Generative AI is a type of artificial intelligence that is used to create new data from existing data. It is capable of creating new data that is similar to the existing data, but is not identical.
Applied AI: Applied AI is the use of artificial intelligence to solve real-world problems. It involves the application of AI algorithms and techniques to solve problems in areas such as healthcare, finance, and transportation.
Industrializing Machine Learning: Industrializing machine learning is the process of using machine learning algorithms and techniques to automate and optimize industrial processes. This includes the use of AI to automate tasks such as production, maintenance, and quality control.
Trust Architectures and Digital Identity: Trust architectures and digital identity are technologies that are used to create secure digital identities and protect data. They involve the use of encryption, authentication, and authorization technologies to ensure that data is secure and can only be accessed by authorized users.
Cloud and Edge Computing: Cloud and edge computing are technologies that allow data to be stored and processed in the cloud or on the edge of a network. Cloud computing involves the use of remote servers to store and process data, while edge computing involves the use of local devices to store and process data.