The Banking Executive Magazine - January 2023 Issue

Technology Outlook 2023 and future economic prosperity. Central banks have key role in ma- nipulating interest rates. • China reopening: For almost three years, the Chinese government has limited the spread of Covid-19 using centralized quarantines, mass testing and rigorous contact tracing. The imminent reopening of China, the world’s second- largest economy could spur growth. But it also carries risks. • Energy: Russia war in Ukraine con- tinues to add uncertainty to fore- casts, especially for countries in Europe. According to the Interna- tional Energy Agency, Europe could face a natural gas shortage in 2023 if Russia cuts off all gas ex- ports to the region and the weather turns colder. DIGITAL TRANSFORMATION OUTLOOK 2023 Every step toward digital transforma- tion will yield real-world gains, and in the recessionary market that will define 2023, will have great impact on organization’s health. The new phase of digital transformation will be led by smart connectivity and net- works. Resilient and agile supply chains can be a weak link or great competitive advantage. Predictive technologies move us away from using isolated data analysis to real- time decision making. Multi-cloud models are designed to be elastic and scalable to complex regulatory and service-level requirements. Smart connectivity and networks help organizations anticipate and re- spond to global trade issues, work- force changes, and other unexpected events. Enterprises and logistics providers will increasingly utilize In- ternet of Things (IoT) to bring greater visibility into their supply chains in 2023. IoT and other technologies will not only play a larger role in bringing better resiliency and effi- ciency into supply chains but can also help to improve network man- agement. As a result, organizations will start to reconfigure supply chains around predictive and prescriptive models including smart contracts and distributed ledgers. This is a major transition toward more sus- tainable business practices and cir- cular supply chains. In the year ahead, the network will become more experience-centric with increasing capabilities to pre- dict end user experience issues and provide problem-solving options. Predictive networks will be powered by predictive analytics that are gath- ered from myriad telemetry sources. As deglobalization and issues around data sovereignty accelerate, there will be a shift in how companies leverage multicloud architectures. BMC Software identified six trends to watch for digital transformation in 2023 1) The Future of Work: how we work is constantly evolving, and technology will continue to be key to enabling work flexibility. 2) Economic Growth Shifts: the tur- bulence of the financial markets is becoming normal, and the na- tions driving global growth are shifting, and geopolitical chal- lenges is altering how business is conducted. 3) Supply Chains, including pro- curement, manufacturing, distri- bution, inventory and last-mile delivery, have changed in ways where data and insights are criti- cal. 4) Cybersecurity: Cybersecurity is everybody’s job and not only the job of the technical team. 5) The Value of Data: Immense data is created and this creates big op- portunities if we can capture, an- alyze, and apply it for better business results. 6) Social responsibility in the organ- isation: this creates an opportu- nity when right decisions are taken in respect of climate change, diversity, and inclusion. ARTIFITCIAL INTELLIGENCE AND ROBOTICS OUTLOOK 2023 According to CISCO, the cloud and Artificial Intelligence (AI) are no longer frontiers. The digital economy is the new tech green space. Nearly eight out of every ten companies have experienced at least one cloud data breach. The transition to net- zero will be as disruptive as the in- dustrial revolution. Businesses need to separate the trends from the hype to capture competitive value. On the other hand, Euronews pre- dicted that Artificial Intelligence will be a big player in 2023. AI will con- tinue to grow and become more de- mocratised changing a lot of industries, especially the media. In- novation in synthetic biology, quan- tum computing and advanced AI robotics is going to be far more pro- found in the next five to 10 years than the last two decades. TechNewsWorld sees that 2023 will be a huge year for AI and robotics. 2023 will be the year when AI-driven personal robotics expands well be- yond the initial wave of the robotic vacuum cleaner. One area that will see a massive increase in the use of artificial intelligence is the health care industry. E-week forecasts indicate a signifi- cant expansion of AI beyond robotics to intelligent automation. Enterprises will seek out AI solutions that can de- liver on objectives. AI will com- pletely transform security, risk and fraud. Healthcare AI will soon move from a reactive to a proactive state. CLOUD COMPUTING OUTLOOK 2023 As deglobalization and issues around data sovereignty accelerate, in the year ahead we will see a discernible shift in how companies leverage multicloud architectures. While 89% of enterprises are adopting a multi- cloud strategy for a variety of reasons (geopolitical, technical, provider di- the BANKING EXECUTIVE 10 ISSUE 169 JANUARY 2023