Top business and tech trends set to define 2024 by Cisco
The trajectory of 2023 was distinctly shaped by remarkable advancements in artificial intelligence (AI). Over the past decade, the proliferation of AI applications has expanded exponentially, albeit often operating behind the scenes, away from the public eye. However, the recent accessibility of generative AI tools has thrust new possibilities into the spotlight, igniting a surge of interest and paving the way for continued acceleration in the upcoming year.
Looking ahead to 2024, businesses operating within the ASEAN region face a pivotal juncture as they grapple with the imperative integration of AI into their operational frameworks. Simultaneously, these enterprises must navigate a spectrum of emerging trends that are reshaping the business landscape. Bee Kheng Tay, President of Cisco ASEAN, emphasised the pressing need for organisations to adeptly incorporate AI while seizing opportunities presented by other transformative technologies.
Tay outlined key business and technological trends set to usher in a new era for companies in ASEAN, offering insights into how they can effectively incorporate these advancements into their operations.
1. AI's shift: From nice-to-have to must-have for businesses
The AI industry, poised to skyrocket from a valuation of USD 95.06 billion to an estimated 1.8 trillion by 2030, stands as a primary engine driving global economic growth in the coming decade. However, many businesses are yet unprepared to fully capitalise on this transformative opportunity. According to Cisco's inaugural AI Readiness Index, a mere 18% of organisations in ASEAN have the readiness to effectively implement and harness AI, while a significant 68% express profound concerns about the potential business repercussions if action isn't taken within the next 12 months.
Encouragingly, there's a palpable urgency among companies to embrace AI, with a vast majority already taking initial strides. A staggering 98% of organisations acknowledge an escalated urgency to integrate AI-powered technologies in the last six months, while 97% are either in the process of formulating or have established a robust AI strategy.
However, critical gaps persist across essential business foundations such as infrastructure, data management, governance, talent acquisition, and fostering a culture conducive to AI adoption. These gaps range from ensuring data readiness for AI utilisation to nurturing a proficient talent pool and implementing effective change management strategies, among other challenges.
As we step into 2024 amidst the impending waves of AI transformation, ASEAN enterprises confront the imperative task of not only addressing AI from a technological standpoint but also in terms of human readiness – acknowledging and bridging the gap between technology and the workforce's preparedness, or lack thereof, in embracing these advancements.
2. Initiating ethical AI: Governance built on trust and transparency
AI holds transformative potential, yet navigating its integration comes with inherent risks that necessitate organisations to establish robust frameworks of policies and protocols. These guidelines are crucial for steering the ethical and responsible management of both data and AI systems. While the majority of organisations in ASEAN acknowledge the significance of AI governance, there remains ample room for enhancement.
Data privacy emerges as a prominent risk area, as only 36% of respondents affirm having highly comprehensive AI policies and protocols in place. Moreover, bias poses another concern, with approximately a quarter (21%) of organisations lacking systematic mechanisms to identify data biases. As the impact of AI continues to expand, regulatory landscapes will inevitably evolve.
Consequently, it becomes imperative for companies to remain updated on pertinent local and international regulations. Timely deployment of internal policies addressing data privacy, security, and the ethical use of AI becomes paramount in this evolving landscape. This encompasses the implementation of robust cybersecurity measures, accounting for potential vulnerabilities introduced by AI systems.
Equally important is the continuous training and upskilling of employees to ensure their competence in handling associated risks. For companies engaged in AI application development, embedding security, privacy, and trust throughout the innovation lifecycle becomes a crucial consideration. This involves integrating these principles by design into products, services, and enterprise operations, ensuring a foundation of responsible and ethical AI deployment.
3. Future-proofing business security: The rise of intuitive networks
As businesses increasingly harness emerging technologies like AI to drive their objectives, the significance of their digital infrastructure becomes more pronounced. Establishing a modern and intelligent network emerges as a pivotal aspect of corporate expansion. The scalability and fusion of these networks with AI workloads or new tech developments could serve as the definitive factor in their success when it comes to leveraging AI and fostering innovation.
Recognising the necessity for cohesive security platforms, companies seek end-to-end visibility across their operations. This need intensifies as cybersecurity grows more intricate within a multi-application, multi-cloud environment, while employees operate from varied locations, using diverse connections and accessing information across multiple platforms.
At its core, the network assumes a critical role in furnishing comprehensive visibility into every user, device, or entity traversing the enterprise infrastructure. This vantage point positions it as the primary control center for detecting and mitigating security threats. Additionally, it enables the enforcement of security protocols to confine the lateral movement of threats across the network, thereby minimising the time required to isolate detected threats.
4. 2024: A year for climate action
As 2023 heads toward potentially becoming the hottest year recorded, the urgency to cap temperature rise at 1.5 degrees Celsius intensifies to avert catastrophic climate shifts. Drawing closer to this crucial benchmark underscores the indispensable role of public-private collaborations. These partnerships are pivotal in establishing consistent and precise mechanisms to gauge progress, both nationally and across industries, fostering a global understanding of advancements in climate goals.
The conversation surrounding mandatory reporting gains momentum as regulatory bodies step in to translate intentions into tangible outcomes. Companies, under mounting pressure to advance their sustainability initiatives, find technology as a key ally. Technology aids in generating visibility and insights spanning from data centers to company facilities, facilitating accurate emissions measurement and the formulation of strategies for smarter buildings and enhanced workspaces.
Service providers, equally held accountable for sustainability targets, increasingly pivot toward bolstering capacity and scalability within their infrastructures. This transformation aims to accommodate rising workloads while concurrently reducing energy consumption, aligning with their sustainability goals.
5. Adapting for success: People and digital transformation
As businesses in ASEAN advance through their digitalisation endeavors, it's crucial to synchronize talent development with this growth trajectory. Despite the burgeoning tech landscape in the region, there persists a scarcity of tech-savvy professionals, intensifying the demand-supply gap. This scarcity, however, presents a pivotal opportunity for organisations to cultivate a future-ready cadre of tech experts, armed with adaptable skill sets to navigate the dynamic technology realm.
Programs like the Cisco Networking Academy stand as pivotal initiatives, aiming to bridge this existing tech talent gap while targeting to train 6.7 million individuals in digital and cybersecurity skills across Asia Pacific by 2032. Beyond talent cultivation, organisations must also prioritise fostering purpose-driven cultures. Such cultures have proven instrumental in fostering team cohesion and corporate resilience amid intricate macroeconomic scenarios. Moreover, cultivating purpose-driven cultures cultivates stakeholder backing and enhances adaptability to ongoing transformations in an ever-evolving business landscape.