Top 10 Opportunities for Technology Companies in 2024Reshaping, repositioning and innovating for success in a GenAI-led worldThe rise of generative AI (GenAI) and renewed growth potential herald a brighter futureAs the sector turns the spotlight onto artificial intelligence …Technology companies worldwide are embarking on 2024 following a year in which their sector managed to elevate its future trajectory. During 2023, the industry successfully navigated global economic headwinds and rising geopolitical tensions while also generating widespread optimism, excitement and expectation around the potential of emerging technology, especially artificial intelligence (AI). Although by no means offering a panacea for all ills, advances like GenAI, large language models (LLMs) and industry-specific co-pilots are rapidly rewriting the narrative.Nasdaq index relative one-year performanceSource: Refinitiv, accessed November 2023-10%0%10%20%30%40%Nov 2022Jan 2023Mar 2023May 2023Jul 2023Sep 2023Nov 2023Top 10 Opportunities for Technology Companies in 2024 3There’s a renewed focus on growth despite increased risks.The result is an outlook that’s far brighter than 12 months before. Early in 2023, when valuations in the sector were under pressure from macroeconomic weaknesses [see chart], tech companies turned to cost savings and rightsizing to help shore up margins. As well as achieving their primary goal, these measures also freed up funds to invest in new technologies to fuel future growth. Companies saw AI as the most promising of these technologies, offering growth prospects across the entire sector, including hardware, software and services.Tech companies’ new AI-centered strategies triggered a rebound in investor confidence, despite a range of macro challenges that are continuing to affect the industry. Economic headwinds are weighing down on sales. The high number of geopolitical conflicts and trade disputes is threatening companies’ access to various markets, technologies, raw materials and components. Changes to data protection rules will also alter how companies can monetize data, while digital taxation and antitrust regulations may change the competitive dynamics overnight.Mapping out the opportunities for 2024It’s against this background that we’ve explored the opportunities for tech companies in 2024. Our overarching finding? AI tools can be applied to virtually every operational activity, including supply chain optimization, automation, risk management, customer alignment and new business development.In compiling our list of the top 10 opportunities, we’ve looked to provide a balanced view of the potential actions for tech companies across various operational processes and different subsectors. By moving decisively to seize these opportunities, tech companies will enable themselves to focus on what they do best: innovating, developing breakthrough technologies and bringi...
