McKinsey advisory council highlights huge impact of tech on business –

Research from McKinsey has highlighted the massive impact that technology is having across all industry sectors. Its latest Technology trends outlook 2022   report identifies 14 significant tech trends, based on research among McKinsey partners and more than 70 leading scientists, entrepreneurs and researchers who make up the McKinsey Technologies Council.  

Applied artificial intelligence (AI) and advanced connectivity feature highly in the analysis associated with tech styles, while areas such as quantum computing and next-generation software development have scores with lower adoption rates and authorities members are unsure of the business impact such technologies will make.

“When we look at these trends, what impresses us more than anything else is the massive effect that technology will have on every sector, ” the report’s authors said. They predicted that over the next few decades, technology development is likely to progress ever a lot more quickly through science to engineering in order to impact – at scale, and around the world.

“We also expect to see the multiplying effect associated with ‘combinatorial innovation’ as different technologies come together in creative ways, ” they said.

Looking in advanced AI, McKinsey partner Jacomo Corbo said: “The biggest shift affecting AI’s broad adoption is tied to more mature tooling and the emergence of a canonical tech stack that is drastically simplifying how AI solutions are usually engineered plus integrated with other digital applications. AI is quickly becoming more consumable, and solutions that use AI are accessible even to organisations with few to no AI engineers of their own. ”

According to McKinsey, barriers to adoption of sophisticated AI include the availability of resources, such as talent plus funding and cyber security concerns, notably those related to data risks and vulnerabilities. “Companies may also face questions from stakeholders about the particular responsible, trustworthy use of AI, touching on this kind of issues because data governance, equity, fairness and ‘explainability ’, ” stated the report’s authors.

“Those questions may prompt policy-makers to establish regulations and compliance requirements that affect AI research plus applications. ”

In terms of superior communications, the report’s authors pointed out that new protocols and improvements within bandwidth offer improvements in order to user experiences and increase productivity in industries such as mobility, healthcare plus manufacturing. In the report, McKinsey noted that will companies have been quick to adopt advanced connectivity technologies that build upon existing standards. However , the particular report’s authors also mentioned newer technologies like low-Earth-orbit (LEO) connection and private 5G networks have seen less uptake to date.

McKinsey believes that will ongoing ownership of innovative connectivity will depend in part on the level of capital investments inside networks supporting some systems, for example high-band 5G and LEO satellites, and on the development of business ecosystems capable of providing services plus solutions. “Operators also need to find viable company models for some online connectivity technologies, ” it said.

McKinsey believes next-generation software development promises to benefit nearly each industry. The report’s writers said the particular sectors that are adopting these technology share similar qualities – process-heavy operations, significant needs for custom software solutions, and rapid innovation cycles. However, they noted that the cost–benefit balance of low-code and no-code development platforms is not yet apparent and may not really favour almost all types associated with software application.

Another factor that could limit adoption of next-generation software program development tools concerns intellectual property and code quality. “Applications depending on auto-generated code could be less secure, defects plus inefficiencies might escape automated code reviews, and there could end up being intellectual property issues regarding AI-written program code, ” the report’s authors warned.