10 noteworthy enterprise technology trends of 2023

The year 2023 has been an exciting one for the enterprise technology sector, especially with regards to the potential of artificial intelligence (AI) to revolutionize various industries. The tech advancements of 2023 have seen significant progress in several areas, including generative AI, space technology, quantum computing, multicloud, and the enterprise metaverse. Additionally, there has been a growing interest in hybrid work models, sustainability, and tech upskilling, all of which are contributing to the ongoing transformation of businesses and society. In this article, TechCircle delves into some of the noteworthy enterprise technology trends of 2023. 

1. AI takes centre stage 

Until last year, AI consisted of point solutions and niche applications that used machine learning to predict behaviours, find patterns, and identify anomalies in curated datasets. This year, foundational models have become more versatile and can now code, write poetry, draw in any art style, create PowerPoint slides, write marketing copy and emails, and even discover vulnerabilities in software. There's no doubt that AI adoption has skyrocketed in 2023, with 40% of enterprises in a global survey confirming that their organizations have already made some investments in AI. Needless to say, the year began with big tech embracing generative AI. OpenAI's ChatGPT's success prompted major tech companies to release their own versions. This year may be remembered for the most AI launches, including Meta's LLaMA 2, Google's Bard chatbot and Gemini, Baidu's Ernie Bot, OpenAI's GPT-4, and several other models.  

Embedding AI into enterprise systems was already a trend before generative AI emerged. But now it has made predictions and analytics accessible to everyone, empowering them with data when and how they need it. Major AI platforms, like OpenAI, now offer APIs that allow enterprises and software vendors to quickly add generative AI functionality to their systems. Further, the use of conversational AI applications, such as chatbots, has increased significantly, and the trend of low-code, no-code AI in website and app development as well as digital twins, have gained tremendous popularity in the enterprise.  

At the same time, 2023 has been a significant year for AI policy and regulations. Earlier this month, the European Union (EU) agreed to the proposed AI Act, which would be the first comprehensive AI legislation in the world upon its enactment. Meanwhile, in India, existing laws will be stretched to cover AI applications until the enactment of AI-specific laws. The proposed Digital India Act, which would replace the Information Technology (IT) Act, 2000 upon enactment, is expected to cover AI. Similar laws are in various stages of making in most of the major economies of the globe, including the US, EU, UK, Japan, and China.

2. Quantum Takes a Big Leap 
 
Quantum technologies are bringing significant change to various industries, including automotive, finance, chemicals, pharmaceuticals, and aerospace and defense, and remain one of the top tech trends in 2023. According to Fortune Business Insights, the global quantum technologies market is expected to be valued at $928.8 million in 2023. The market is expected to reach $6.52 billion by 2030, growing at a compound annual growth rate of 32%. Alphabet, Microsoft, IBM, and Nvidia are some of the companies investing heavily in the technology. While researchers are making progress in building and optimizing quantum computers, paving the way for breakthroughs in fields like materials science, drug discovery, and AI. The move is backed by multinational corporations and venture capitalists. 

India also has bold ambitions to harness its latent quantum potential. In July, India and the US established a joint Indo-US quantum coordination mechanism to facilitate collaboration between industries, academia, and government entities. India's ₹6,000-crore quantum mission, announced in April this year, aims to catapult efforts to engineer and utilize the delicate quantum features of photons and subatomic particles to build advanced sensors that boost the value added by these enterprises and to support sustainable development.

3. Space Tech Picks Up Pace 

In 2023, space exploration reached new milestones with various countries launching successful space missions, including India's India Space Research Organisation (ISRO). India blazed a trail in 2023, as not only did it become the first nation to land on the Moon's South Pole with Chandrayaan-3, but it also launched its first dedicated sun-observing spacecraft, Aditya L1. This further solidified India's position as the 5th country with complete space research and development capabilities. To enhance capabilities and improve outcomes, major players such as ISRO and NASA are using advanced satellite systems and have embraced new technology ranging from 3D printing to quantum computing to 5G. Apart from these, new trends such as space robotics and smart propulsion are gaining significant traction this year. 

4. The Rise and Rise of Deepfakes 

As Large Language Models (LLMs) like OpenAI's ChatGPT and other AI tools exploded onto the public arena this year, deepfakes - algorithmically generated videos or images that can be used to fake an individual's likeness, mimicking real behavioor and speech — posed a looming threat to individuals and corporations alike. Recently, two new deepfake videos of Infosys founder Narayana Murthy were shared on social media, promoting a so-called investing platform 'Quantum AI', claiming that users of this new technology would be able to earn $3,000 (around Rs 2.5 lakh) on the first working day. While deepfakes are on the rise, companies have also been seen devising ways to combat the menace. For example, Google is crafting a policy to educate creators (on platforms such as YouTube) on the proper use of 'synthetic' or deepfake content, as well as how to prevent its misuse. Intel has also released FakeCatcher, which can detect deepfakes with 96% accuracy in seconds. The tech giants have also released research related to deepfake detection. According to cybersecurity company CyberArk, the financial repercussions of these attacks could be severe, potentially leading to reputational damage, loss of investor confidence, and even economic instability. 

5. Sustainability no longer a buzzword 

Sustainability is no longer just a buzzword; it is now a driving force reshaping global businesses as we enter 2023 and beyond. Enterprises are realising the need to proactively identify opportunities, collaborate with stakeholders, and continually improve their sustainability performance in order to stay ahead. Environmental, Social, and Governance (ESG) practices are gaining prominence as companies recognise the importance of integrating sustainability considerations into their decision-making processes. ESG factors include climate change, resource efficiency, labour rights, diversity and inclusion, and corporate governance. By embracing ESG practices, businesses can create value, enhance resilience, and build stakeholder trust. 
 
Furthermore, sustainability reporting has become vital for businesses to communicate their environmental, social, and governance performance to stakeholders. Global technology companies such as HPE, Dell Technologies, IBM, Meta, Nvidia, Intel, Google, and Amazon are striving to achieve net zero emissions across all operations and value chains by 2030. Most of these companies are aiming to run on carbon-free energy, 24/7, across all data centres in the next 8-10 years. They are aligning with global efforts to combat climate change, transitioning to renewable energy sources, and implementing sustainable supply chain practices.

6. Edge computing not so edgy 

Edge computing, a distributed computing framework that moves enterprise applications closer to data sources, has gained traction this year. Companies such as Amazon Web Services (AWS), Microsoft, HPE, Dell Technologies, and EdgeConneX have announced various initiatives throughout the year. These data sources include local edge servers and Internet of Things (IoT) devices. 
 
According to Dave McCarthy, research vice president of cloud and Edge infrastructure services at IDC, "Edge computing has gone mainstream." IDC forecasts that edge computing will reach $208 billion this year, a 13% increase from the previous year. The demand for better performance and shorter transaction times are driving the adoption of edge computing. Having enterprise applications close to data sources provides advantages such as reduced latency and quicker insights. The development of 5G technology is expected to play a pivotal role in driving edge applications, although it is still in the early stages. The year also saw vendors extending existing feature sets and creating new edge-specific offerings, so as to increase customers adoption.

7. Multicloud begins to soar 

While hybrid cloud has been a prevailing strategy, 2023 is shaping up to be the year of multi-cloud. More businesses are looking for flexibility, security, and redundancy, and are therefore avoiding reliance on a single cloud provider. Companies such as Amazon Web Services (AWS), Google, IBM, Microsoft, VMware, Salesforce, and Oracle are leading the pack. However, companies are under pressure to protect their data across multi-cloud environments, as there has been an increase in attackers stealing sensitive data stored across these environments. 

8. Tech upskilling — a survival strategy 

In 2023, when the job markets are already looking brutal, professionals worldwide will continue investing in skill development programs to retain their jobs and accelerate their career progression, specifically in the management, digital marketing, data science and analytics, and software development domains. Upskilling in areas such as Artificial Intelligence, particularly Generative AI, Machine Learning, and Cybersecurity, has also gained significant traction.  

Ritesh Malhotra, Enterprise Head, Great Learning believes that hiring freezes and economic uncertainty compelled organizations to rethink their talent management strategies. “Instead of relying solely on external hires, companies are turning inward, focusing on upskilling and reskilling existing employees to drive growth and innovation and this shift towards internal talent development has led to the introduction of strategic upskilling and reskilling initiatives across various industries,” he said. 

9. Hybrid work model here to stay 

The hybrid work model, which allows employees to work from home for a certain number of days in the week, has become the most prevalent work arrangement in many offices. A global study by Gallup published in November noted that in 2019, 60% of remote-capable employees worked fully on-site, whereas that figure has fallen to just 20% in 2023. Companies across sectors such as Tata Steel, Flipkart, Marico, LTIMindtree, Boston Consulting Group, Eaton, and many more have maintained the hybrid work model in 2023, offering flexibility to employees to better maintain work-life balance. Experts believe that hybrid working is here to stay. 

10. Enterprise metaverse gains momentum 

The enterprise metaverse has gained momentum in 2023, with several use cases across industries such as banking, financial services, manufacturing, telecom, media, entertainment, healthcare, and life sciences, noted Ashootosh Chand, PwC India partner, digital and emerging technologies. Indian IT firms are also embracing the metaverse. Projects related to the metaverse, AI, AR/VR, and quantum computing are attracting more deals. Apple's announcement of Apple Vision Pro has renewed industry interest in the metaverse in the second part of 2023. The growing interest in the metaverse has also had an impact on the development of Web3 technologies, such as decentralised finance platforms and NFTs. These technologies are being integrated into virtual worlds that enable users to interact with digital assets.