Despite a downturn in technology investment and hiring in 2023, frontier technologies have a promising future.
For business leaders seeking greater growth and efficiency, McKinsey’s latest research identified the most important global technology trends for executives to pay attention to. In a recent McKinsey Live, senior partner Lareina Yee and partner Roger Roberts discussed the fourth annual Technology Trends Outlook, which grouped the 15 top trends into the following five categories: the AI revolution, building the digital future, compute and connectivity frontiers, cutting-edge engineering, and a sustainable world.
Unsurprisingly, the star trend is generative AI, with unprecedented growth from 2022–23 in equity investment (up 660 percent), jobs (up 111 percent), interest (Google searches are up 700 percent), and innovation.
However, the true value lies in combining gen AI with other tech trends to unlock new possibilities. For example, in robotics—a trend new to the list—gen AI is ushering in a new generation of capabilities and flexibility. Because a robot can improve its own performance, a company’s robotics investment can increase rather than depreciate over time.
An organization that is prepared to move quickly when a new technology (or multiple technologies) is ready to be implemented and scaled will lead the pack. Among other challenges, the organization will need to be ready with a new tech ecosystem, a newly skilled workforce, and the ability to mitigate the risks of the new technology.
Q&A from the session
1. What strategic partnerships should we prioritize to leverage cutting-edge technologies and innovations, and how can we ensure these collaborations align with our long-term business objectives?
Which partners, when to engage them, and how to effectively collaborate are key questions on the pathway to tech trend readiness. Leaders should begin by selecting the use cases that will drive the most value for their business, and what technological developments are required to unlock value. For many trends, including generative AI and next-gen software development, a technology ecosystem model can underpin innovative and quick deployment of new technologies. This requires understanding strategic issues and where proprietary relationships or in-house capabilities drive advantage, building an orchestration layer that integrates services, and establishing governance and product and platform architectures that are sufficiently effective, efficient, and secure.
2. As technology advances, how can organizations mitigate risks to ensure their operations remain safe and efficient?
Organizations must establish the right processes and practices to manage technological change. One trend highlighted in the 2024 Tech Trends Outlook is digital trust and cybersecurity, which organizations must consider as they adopt emerging and maturing technologies (for example, cloud and edge computing, applied AI, and next-generation software development). This trend includes technologies that enhance trust such as digital identity and privacy enhancing), cybersecurity capabilities, and Web3 technologies. Organizations must carefully develop their digital trust and cybersecurity capabilities, as the Tech Trends Outlook highlights that the demand for crucial skills like information technology, computer security, and risk analysis far exceeds the supply.
3. Which industries are poised to benefit the most from these emerging technologies?
All industries will feel the effects of technological advancements. Trends such as the AI revolution, the digital future, and the compute and connectivity frontier will continue to reshape how companies across industries operate. For example, some mining companies like Freeport McMoran are embracing the AI trends to unlock new incremental production equivalent to a new processing facility, without new capital deployment. Leaders should adopt technological readiness as a pillar of their 5–10-year business strategy, ensuring they are able to embrace new opportunities and benefit from disruption.
* * *
The report Technology Trends Outlook 2024 is available on McKinsey.com.
The contents of this site, including any statements, articles, graphics, charts, checklists, and other materials (“Content”) are for informational purposes only. The Content is not intended to be a substitute for professional advice.