If 2020 was the year of an “unexpected” pandemic and lockdowns, then 2021 was unquestionably the year of the vaccine. But people are always adapting, which is why this year we are seeing burning issues such as climate change, artificial intelligence control and the dangers of digital transformation occupying an increasing share of public debate.
Trust Economics (https://trusteconomics.eu), the leading company in the field of economic research, business strategy and consulting, presents its forecasts for the new year and analyzes how they will affect societies and businesses.
1. Ethical artificial intelligence
In April 2021, the President of the European Commission, Ursula von der Leyen, presented the new EU plan. to set up artificial intelligence programs. No longer a surprise – artificial intelligence is everywhere and will become more and more important in the coming years. Nevertheless, the important issue of conscientiousness in artificial intelligence and the ethical issues arising from its development, such as the risk of integrating racial and sexist biases into algorithms and face recognition, remain.
The artificial intelligence regulatory framework is an opportunity for the EU. to advance the trial agenda to establish a leading position in the global digital market and to set another global standard, as it has successfully done through the GDPR.
New regulations, such as those promoted by the EU, are transforming the concept of ethical artificial intelligence from a framework of regulations into the creation of credible and “transparent” business models. During 2022, the adoption of more responsible artificial intelligence practices will be a major part of many companies’ innovation strategies and programs and the most important topic of discussion with customers. Companies that have already adopted more responsible procedures will gain a competitive advantage.
In a more general context, artificial intelligence enables greater personalization on multiple levels, from personalized customer service offerings to personalized patient therapy based on factors such as genes, environment and lifestyle.
2. The challenges of supply chain normalization
The effects of the COVID-19 pandemic have caused a huge upheaval in the global supply chain, making everyone aware of the criticality of the retail situation. Shortages in all areas are becoming increasingly worrying.
In retail we expect an even greater decline in inventories, high demand and “out-of-stocks” for the whole of 2022. Traders who will properly use data analytics to receive and interpret information from the supply chain and Consumer demand, are those who will succeed in this new regularity of 2022, as they will be able to respond quickly to supply chain malfunctions and changing customer preferences.
3. Scammers are taking advantage of supply chain problems
It is a fact that the COVID-19 pandemic has led to an increase in fraud, as there are far fewer physical checks on stocks and stores. Businesses have stopped giving equal importance to risk management in the supply chain and fraudsters and circuits do not miss the opportunity to take advantage of this situation. Data analytics guides the digital transformation of the supply chain, as they emphasize procurement processes, such as detecting fraudulent bids and adhering to contract terms.
For the above reasons, indirect cyber attacks are on the rise and fraudsters, in order to gain access to information, are increasingly taking advantage of the relationships of trust that have been established between companies and their suppliers. Although supply chain fraud is not new, in 2022 this issue will be a major global challenge.
4. User Experience and complete removal of cookies
Smart technologies, powerful experiences, digital trust, automation and deliveries. The COVID-19 pandemic has accelerated change to a digital-first economy, where consumers expect truly personalized experiences – all powered by consumer data. In 2022, the advanced data analytics offered through the use of artificial intelligence and automated marketing decision making will play an even more important role in shaping proactive rather than reactive customer-centric strategy, while those companies that have not moved in this direction by 2030, they will be left behind.
As third-party cookies no longer exist, marketers must now rely on the data they have: Their own primary data. It is now certain that ambitious data strategies will prevail.
5. Climate change and its impact on lending and investments
Climate change also has a significant impact on lending and investment. The European Central Bank (ECB) published on September 22 the clear and unequivocal results of the first climate stress test, which was conducted for the first time for the whole European economy and mainly concerned banking institutions. The conclusion is sad: Climate change could cause the financial system to collapse, creating a “domino” if a major banking player goes bankrupt.
2022 will be the year of action for most businesses and financial institutions in Europe, as new climate and sustainability data disclosure requirements are implemented. At the same time, special regulations will be set for banking institutions and climate risk, including even climate stress tests at EU level. Financial institutions need to significantly strengthen their data analytics processes to address all of the above issues. Securing a lot of new data, developing new models, generating new reports, and implementing new simulations for new, future scenarios are just some of the elements needed to support compliance and strategic planning processes.
6. A new, more flexible work environment
It is now a given that in 2022 the work environment will be more flexible than ever. Flexibility at work is now the rule. Also, two new values appeared and came to stay: Curiosity and the accompanying learning.
Curiosity helps businesses meet critical challenges – from improving work experience to creating workplaces that drive innovation. Literacy is the acquisition of the necessary knowledge to achieve the goals of innovation. Curiosity and literacy will be the most sought after professional skills in 2022, because employees with curiosity and literacy contribute to and enhance employee retention, even in today’s complex work environment.
Companies should be prepared to take full advantage of the opportunities of a flexible working environment and minimize the risks involved, such as employee fatigue and distancing. They need to prepare and transform their processes into a hybrid work model, cultivate long-term staff resilience, with benefits related to their health and not just performance, and strive to achieve diversity and inclusion goals faster through accountability for these goals and to support the development of a hybrid, human-centered, working model that promotes collaboration.
In conclusion, the pandemic continues and significantly affects societies and businesses, bringing rapid developments in technology. The digital transformation is taking on new dimensions – as evidenced by the great NFT debate. Artificial intelligence and data analytics can offer solutions to a multitude of problems that until now seemed complex and intractable.
