Humans created technology to introduce innovative products into the market. The relentless cycle of technological innovation has now impacted humanity, redefining the essence of being human.

This transformative change is influencing business priorities and is expected to continue doing so in the future. C-level executives consider digital transformation, artificial intelligence (AI), the Internet of Things (IoT), and cybersecurity as crucial tech investments.

Additionally, mobile and blockchain technologies are designed to promote financial inclusion, given the increasing global usage of mobile phones and the success of mobile banking in developing countries. 

What Is The Role Of Technology In The Investment Industry?

Below we will discuss tech for business and its impact on the investment landscape in more detail.

1. AI

Occasionally, a groundbreaking technology emerges that has the power to revolutionize everything in its path. Cloud computing was the most recent example of such a technology. Much like cloud computing, AI has been in existence for quite some time. AI, machine learning, and deep learning are rapidly catching up with their initial promises, and this progress will become increasingly evident in the future.

Business intelligence, task automation, and predictive analysis using historical data will be the most prevalent applications of AI and machine learning. Increasingly, businesses are investing in AI-driven decision-making systems, building upon the previous use of AI for data analytics. Another application that will become more commonplace is digital identity verification for online businesses.

Generative AI programs like ChatGPT, which launched in November 2022, have generated significant interest. The adoption of AI by businesses has more than doubled since 2017, with McKinsey’s ‘The State of AI in 2022‘ report indicating that 50% to 60% of organizations leverage AI. AI empowers companies to enhance productivity, anticipate customer needs, and deliver customized services, driving new ways of doing business.

2. Cybersecurity

GlobalData estimates predict that the global cybersecurity industry will experience significant growth, reaching $198bn in 2025 from $261.1bn in 2023, with a compound annual growth rate (CAGR) of 8.7%.  While we are thinking about how technology can affect investments, cybersecurity concerns arise. The greater the share of business and investment markets that move to the digital environment, the more painful the consequences of hacking accounts or corporate networks will be.

One of the available solutions is VPN and the flagship VeePN. If you download VeePN, you can protect yourself from phishing, DDoS attacks, man-in-the-middle attacks, data interception, malware, and several other attacks. Another important aspect, a VPN can protect intellectual property. Plus VeePN has a free trial version. Investing in cybersecurity can save hundreds of times more money than it costs. Why is it not a profitable investment?

3. Metaverse and Web3

Investment opportunities in ‘web3’ and the ‘metaverse’ can revolutionize lives by creating a decentralized and immersive world. Banks, for instance, can host customers in virtual offices, showcase metaverse property models, provide mortgage and insurance advice, facilitate blockchain-based transactions, and offer tailored products/services. Embracing web3, metaverse, AI, and blockchain technology enables businesses to deepen customer relationships and realize significant time and cost savings.

4. Quantum Computing

Quantum computing, currently in the research and development phase, holds the promise of revolutionizing computation-intensive problem-solving. Google’s substantial investment in quantum research and development is anticipated to fuel further growth, attracting researchers to shift their focus from AI to the quantum realm. Moreover, the quantum research industry is expected to experience a significant surge with the advent of 5G technology.

5. Cloud

Companies in various industries are turning to technology to optimize internal functions like enterprise resource planning (ERP) and human resources (HR). Cloud deployment is a major trend in ERP, where software is hosted on vendors’ servers and accessed through a web browser. Typically this approach implies a lower cost compared to on-premises software installed locally.

As cloud-based ERP continues to expand, smaller businesses are likely to adopt these solutions, but vendors must demonstrate preparedness for security risks, including data access control and potential data theft by malicious actors. Also, priority is given to the VPN iOS app and other forms of VPN for cybersecurity. Another significant theme is the application of AI to identify and learn from data patterns. This provides wide-ranging benefits for forecasting, modeling, supply chain tracking, and customer service.

6. Blockchain

The $840bn cryptocurrency industry faced a challenging year in 2022, with the collapse of the leading FTX platform sending shockwaves across the global financial system. However, this incident is expected to drive substantial progress in 2023-2024 towards a US regulatory framework that aligns with the EU’s Market in Crypto-Assets regulation. In the upcoming year, the focus will be on implementing regulations to protect clients’ funds, such as requiring proof of reserves and preventing asset co-mingling. With the establishment of robust crypto-asset regulations, the market is poised for increased growth and widespread adoption.

7. Internet of Things

According to GlobalData, the global enterprise IoT market is projected to reach $925 bn by the end of 2023. Smart cities will account for $315bn of this market, while the industrial internet will contribute $335bn. Despite the economic climate, the sector is expected to continue growing in 2023-2024 as enterprises focus on streamlining their IoT spending and maximizing returns on investment.

In 2023-2024, consumer IoT, which includes automated homes, connected cars, and wearable tech, is forecasted to generate 27% of global IoT revenue. GlobalData predicts that wearable tech will be the largest and fastest-growing segment by revenue, followed by connected cars and automated homes.

Final Thoughts

All forms of investment have been transformed to one degree or another by the technological revolution. Somewhere this brought great progress as more people were able to access financial markets. There are some concerns in other areas, particularly around the use of AI and cybersecurity vulnerabilities. However, you can protect yourself from negative consequences, and positive technological trends provide several advantages for everyone who is in one way or another connected with the investment segment.

What role do you think technology should play in shaping our future?

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