TIMES.VG

BVI, Caribbeanand International News
TIMES.VG

2023 tech predictions: AI, crypto and EU regulation

2023 tech predictions: AI, crypto and EU regulation

While predicting the year ahead should be taken with a handful of salt, some indications of what could be in store for the technology sector in 2023 have emerged.

Artificial intelligence (AI) has surfaced as a big player this year, while the hype bubble over the metaverse appears to have burst. Meanwhile, cryptocurrencies have nosedived amid scandal and economic pressure and the tech sector has seen job cuts en masse.

Euronews Next takes a look at what could lie ahead for the tech and crypto sectors in 2023.


Artificial intelligence


AI has made major strides this year, especially with ChatGPT, a powerful AI chatbot from the Elon Musk-founded OpenAI foundation, which is self-censoring and generates text at a user’s request.

“I think the area that will continue to see great strides in is very much AI,” said Ajay Chowdhury, Managing Director & Senior Partner at Boston Consulting Group, adding that with ChatGPT you could even write this article on the future of the tech - and a “pretty good one at that”.

He noted the journalist’s expertise would still be needed “but as a research tool, it's absolutely astounding”.

Chowdhury told Euronews Next that we will see the democratisation of this kind of AI fundamentally changing a lot of industries, especially the media.

“The media sector is always the first to be hit by these new technologies and I think is going to really make a lot of media companies think about creativity and talent,” he said.

But AI will affect every industry as its problem-solving capabilities can speed up the time to dig into masses of data, making many business decisions cheaper.


The metaverse gamble


Last year, there was much hype around the metaverse after Meta CEO Mark Zuckerberg unveiled his big bet on the virtual reality world, which has not taken off as he had hoped.

Meta’s shareholders have grumbled about the costly change of focus and have seen the company’s stock fall more than 65 per cent this year. Meta also laid off 11,000 employees in November.

“The metaverse was the big bet that I think a lot of people in the tech sector decided to make, especially Zuckerberg,” said Chowdhury.

“The reality in tech is that stuff takes a lot longer to happen than you would expect,” he said, adding that this applies to Meta’s metaverse but that there are “other amazing virtual worlds” where consumers can go or that can be used for educational and training purposes.


The tech sector’s economic woes


Job cuts have not just hit Meta, but other tech giants such as Amazon, Twitter and Lyft.

The US tech sector in particular very much got ahead of itself in terms of hiring in the beginning, said Chowdhury, and growth and valuation have now started to plateau, resulting in job cuts.

“The markets had given them a bit of a free pass on costs because they were growing so fast and as the macroeconomic headwinds have come in, they've suddenly realised that their markets are slowing down. They want to focus on the bottom line and frankly, they had too many people,” he said.

But this could be an opportunity for smaller or niche tech companies to hire talent from the tech giants.

For Europe, war was inflicted this year in Ukraine, and the economic shock has hit the continent far more than in other parts of the world with rampant inflation and rising energy prices.

This could have an impact on venture capital funding, resulting in lower investment in start-ups and innovation.

Innovation in synthetic biology, quantum computing or advanced AI robotics is going to be far more profound in the next five to 10 years than the last two decades. But these start-ups need funding to do that. Chowdhury said if they do not, Europe could lag behind the US and China in terms of innovation.


Cryptocurrencies


The challenging economic times have also impacted the price of cryptocurrencies this year, but that is not all.

The industry has also seen the spectacular collapse of the third-largest crypto exchange FTX, run by Sam Bankman-Fried.

It comes as the entire crypto market lost more than $1.4 trillion (€1.3 trillion) in value this year amid multiple crashes, including the Terra Luna saga.

It has been a testing year for the crypto and web3 industry as the markets took a turbulent ride with the rise and fall of Terra Luna and FTX, said Samantha Yap, Founder and CEO of YAP Global, an international PR and communications consultancy focused on blockchain and decentralised finance (DeFi).

But she also said this year has seen the growth of multi-chain ecosystems, meaning users do not have to switch between networks when making transactions through several chains simultaneously.

“The promising thing about these ecosystems growing is the focus on the technology and the applications it can enable, which is the most interesting part about the crypto industry”.

“As we reflect on what will resist the bear market, we must go deeper into the fundamentals of crypto technology and figure out why we truly believe in the technology. If we don't have this conviction in the tech, then it will be hard to survive the trough of this wave,” she said.

But economic conditions will have an impact on the crypto industry, which will “be constrained by the macro conditions such as high interest rates and sluggish global markets growth,” said Danny Chong, co-founder of the decentralised finance app Tranchess.

“Investment activities will be much slower than in the past two years with investors taking a “wait-and-see” attitude. Their decisions will also be affected by the wider market environment,” he said.

“Investors will be more stringent in their selection of projects with greater due diligence of operational and governance processes, the background of team members, and balance sheets”.


EU tech regulation


Government regulation, especially in cryptocurrency, is likely to be big in 2023.

The Markets in Crypto-Assets (MiCA) Regulation, the EU’s legislation for governing digital assets across member states, is expected to come into force in early 2023.

The law aims to maintain financial stability and protect investors while also promoting the transformation in the crypto asset sector.

Meanwhile, the EU’s internal markets chief Thierry Breton has warned online platforms will have to “be ready” for September 1, 2023, when the Digital Services Act (DSA) will definitely come into force.


The DSA legislation is essentially aimed at social media companies and is intended to tackle online hate speech and disinformation, protect children and prevent consumer fraud.

Violations can trigger fines of up to 6 per cent fine of a company’s global turnover and even a ban on operating in the EU in case of serious and repeated breaches. Website users will also be able to seek compensation for any damage caused by the providers’ failure to comply with the new rules.

Newsletter

Related Articles

TIMES.VG
Close
0:00
0:00
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
Tesla reported record profits and record revenues for 2022
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Who’s Threatening Israeli Democracy?
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Tesla slashes prices globally by as much as 20 percent
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
Saudi Arabia set to overtake India as fastest-growing major economy this year 
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
UK chaos: Hong Kong emigrants duped by false prospectus
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Will Canada ever become a real democracy?
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Hong Kong to scrap almost all its Covid rules
EU calls screening of travellers from China unjustified
US imposes Covid testing for visitors from China
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
If a country is denied the right to independence by another, it is not in a union. It is in a dictatorship.
Where is Rishi? Chancellor Jeremy Hunt's excuses about the UK's economic challenges just don't make sense
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
Corruption works: House Financial Services Chair Waters doesn't plan to subpoena her donor, Sam Bankman-Fried, to testify at hearing on FTX collapse
Ronaldo's new contract...
Prince William's godmother resigns honorary royal role after exposing her/their racism
British PM Rishi Sunak pledges further action on strikes to 'protect lives'
Tax fraud verdict again exposes illusion of Trump the master businessman
Tax fraud verdict again exposes illusion of Trump the master businessman.
Double standards: UK lawmakers attack EU chief over Ireland claims
Yellen hints at ‘national security’ probe into Twitter purchase
Elon Musk reinstates Donald Trump's Twitter account.
George W. Bush and Barack Obama will hold back-to-back disinformation conferences
Mission Improbable: Tom Cruise & Queen Elizabeth
×