Inflation was a major problem in 2022 and its effects were felt widely. However, the year 2022 has also shown the world how people can work together. This was the case, for instance, when new environmental protection agreements were made, when aid was provided to individuals who had been compelled to flee their homes because of the conflict in Ukraine, and when nearly 2 billion doses of COVID-19 vaccine were shipped to areas of the world in need.
The year 2022 has proven that the obstacles may get more daunting with time, but they are not insurmountable. LinkedIn has presented an analysis that does double duty by looking back at the year 2022 and looking ahead to major ideas that will define 2023.
Future entrepreneurs will launch a slew of new companies with a mission to change the world.
Many of the most successful businesses in the world had their start during the Great Depression. It was during the 1970s recession that Apple and Microsoft took action, and it was during the 2008-2009 recession that Airbnb and Spotify did the same. As we can see from the cases presented, economic downturns can actually be fertile ground for new ideas and a fresh perspective.
Entrepreneurship is more accessible than ever before thanks to widespread availability, cloud computing, inexpensive data storage and software solutions, the growing number of digital natives entering the workforce, and years of research into Silicon Valley's success.
A possible global recession will not be like 2008
We have reached a tipping point in the world economy. The world's three largest economies—the United States, China, and the European Union—are "slowing substantially," the World Bank says. The World Trade Organization predicts a bleak future for 2023. According to the IMF, "the worst is yet to come." Global CEOs are in agreement: a downturn is imminent, with 86% expecting one within 2023.
Whether it is due to unwavering faith that the pandemic will soon end or to the unshakeable conviction that central banks will relax their tight control over borrowing costs, the forthcoming downturn is not expected to constitute an economic turnaround. When asked about the approaching recession, 58% of CEOs from around the world in the same survey predicted that it would be light and relatively brief. So, it's not 2008 anymore.
Some of the most powerful people in the world today—the central bankers of the United States and the European Union—are all that stand between the economy and a recurrence of the worst recessions in history. When central bank leaders like US Federal Reserve Chairman Jerome Powell and European Central Bank President Christine Lagarde speak about combating rising inflation with aggressive and speedy interest rate hikes, investors listen closely.
AI will gain multiple 'sense'
By combining the processing of acoustic, visual, and linguistic input, artificial intelligence will be able to acquire a broader understanding of its environment. DALL-E is one such technology that can create unique artwork in response to text commands.
The next few years will see the rise of multimodal AI in a variety of new settings, where it will perform nuanced analyses of data and the surrounding environment. One use of multimodal AI is in medicine, where it may analyze multiple data sources at once, including imaging, medical records, and biosensor readings. This allows it to generate diagnoses and suggested therapies.
Crypto will face its biggest hurdle
The use of cryptocurrencies has been on the rise in recent years, despite a few hiccups. Ten percent of all internet users worldwide are cryptocurrency holders, per a recent poll. Crypto, however, has a ways to go before it is universally accepted.
In order to become the mainstream, cryptocurrencies must develop from risky investments to trusted means of payment. This growth was hampered by the November demise of crypto exchange FTX, as well as by security flaws that allowed for breaches, speculative trading, and the final demise of a semi-ponzi coin.
The current economic climate favors enterprises with sound business strategies, which will gradually establish the groundwork to mainstream crypto without endangering crypto. Authentication for crypto transactions and crypto-optimized offers for small businesses are on the horizon, and it's possible that more businesses are beginning to accept cryptocurrency for payments, swaps, and settlements. Additionally, businesses are investing in advanced payment and subscription billing capabilities, which paves the way for the sale of digital assets.
With all the crypto-related failures in 2022, why would any company want to invest in the sector now? Given the potential for the cryptocurrency sector to expand, these features will be of interest to a much broader audience than simply crypto devotees. It's good for business, too.
Fashion brands will enter the second-hand market
The market for pre-owned garments is enormous. In just two years, the secondhand clothes business has grown from $40 billion to roughly $120 billion, representing 3–5% of the entire apparel, footwear, and accessories market. The Boston Consulting Group (BCG) has speculated that the global used clothes market could reach 40% of the market in the near future.
To bring these lucrative sales in-house and win over young, environmentally conscious consumers, more fashion firms will launch their own clearing and reselling activities. Many brands will instead work with the increasing number of organizations that specialize in complex back-end logistics and e-commerce interfaces rather than implementing these projects in-house.
Sellers who don't have the time to take pictures and market their gently worn clothing on various sites can find a far more convenient alternative in secondhand programs established by companies.
Hybrid operation will be permanent
Many CEOs will continue to urge workers to return to the office in force well into 2023, when the great return-to-office discussion is expected to reach a fever pitch. The hybrid strategy, however, appears to be the winner.
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