McKinsey’s latest Technology Trends Outlook 2024 report highlights the key tech advancements shaping industries worldwide. Applied AI takes center stage this year, with significant growth in machine learning models being used for analytical and predictive tasks. The report delves into early successes across industries as businesses increasingly adopt these AI technologies.
Along with AI, McKinsey outlines emerging opportunities in quantum computing, cloud tech, and cybersecurity, urging companies to leverage these trends for competitive advantage and growth in 2024. With tech evolution driving change, companies must keep pace with innovation to stay ahead in the marketplace.
In this year’s Technology Trends Outlook, McKinsey identify opportunities and early triumphs in applied AI, which leverages machine learning models for analytical and predictive tasks.
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Discover the top 15 tech innovations that matter most for organizations today.
“Despite challenging overall market conditions in 2023, continuing investments in frontier technologies promise substantial future growth in enterprise adoption. Generative AI (gen AI) has been a standout trend since 2022, with the extraordinary uptick in interest and investment in this technology unlocking innovative possibilities across interconnected trends such as robotics and immersive reality. While the macroeconomic environment with elevated interest rates has affected equity capital investment and hiring, underlying indicators—including optimism, innovation, and longer-term talent needs—reflect a positive long-term trajectory in the 15 technology trends we analyzed.
These are among the findings in the latest McKinsey Technology Trends Outlook, in which the McKinsey Technology Council identified the most significant technology trends unfolding today. This research is intended to help executives plan ahead by developing an understanding of potential use cases, sources of value, adoption drivers, and the critical skills needed to bring these opportunities to fruition.“ – McKinsey
McKinsey Technology Trends Outlook 2024
McKinsey Technology Trends Outlook 2024
“As technologies gain traction and move beyond experimenting, adoption rates start accelerating, and companies invest more in piloting and scaling. We see this shift in a number of trends, such as next-generation software development and electrification.“
– McKinsey
McKinsey Technology Trends Outlook 2024
The process of scaling technology adoption also requires a conducive external ecosystem where user trust and readiness, business model economics, regulatory environments, and talent availability play crucial roles. Since these ecosystem factors vary by geography and industry, we see different adoption scenarios playing out. For instance, while the leading banks in Latin America are on par with their North American counterparts in deploying gen AI use cases, the adoption of robotics in manufacturing sectors varies significantly due to differing labor costs affecting the business case for automation.
As executives navigate these complexities, they should align their long-term technology adoption strategies with both their internal capacities and the external ecosystem conditions to ensure the successful integration of new technologies into their business models. Executives should monitor ecosystem conditions that can affect their prioritized use cases to make decisions about the appropriate investment levels while navigating uncertainties and budgetary constraints on the way to full adoption (see the “Adoption developments across the globe” sections within each trend or particular use cases therein that executives should monitor). Across the board, leaders who take a long-term view—building up their talent, testing and learning where impact can be found, and reimagining the businesses for the future—can potentially break out ahead of the pack. -McKinsey
McKinsey Unveils 2024 Technology Trends: 15 Key Innovations Shaping the Future
This report lays out considerations for all 15 technology trends.
McKinsey’s Technology Trends Outlook 2024 groups 15 pivotal technological developments into five key categories, offering valuable insights into how businesses can leverage these innovations to drive growth and efficiency.
For easier consideration of related trends, McKinsey grouped them into five broader categories:
1 – The AI revolution,
2 – Building the digital future,
3 – Compute and connectivity frontiers,
4 – Cutting-edge engineering, and
5 – A sustainable world
THE AI REVOLUTION
Generative AI, Applied AI, and Industrializing Machine Learning continue to transform industries, offering powerful tools for automation, creativity, and prediction.
- Generative AI
- Applied AI
- Industrializing machine learning
BUILDING THE DIGITAL FUTURE
Advancements like Next-generation Software Development and Digital Trust & Cybersecurity are critical to modernizing infrastructures and securing digital environments.
- Next-generation software development
- Digital trust and cybersecurity
COMPUTE AND CONNECTIVITY FRONTIERS
Emerging technologies in Advanced Connectivity, Quantum Computing, and Immersive Reality are pushing the boundaries of interaction and computational power.
- Advanced connectivity
- Immersive-reality technologies
- Cloud and edge computing
- Quantum technologies
CUTTING-EDGE ENGINEERING
The Future of Robotics, Mobility, and Bioengineering signal a revolution in automation, transport, and healthcare innovations.
- Future of robotics
- Future of mobility
- Future of bioengineering
- Future of space technologies
A SUSTAINABLE WORLD
Electrification, Renewables, and novel Climate Technologies lead the charge in building an eco-friendly and resilient future.
- Electrification and renewables
- Climate technologies beyond electrification and renewables
McKinsey urges organizations to adopt these trends strategically to stay competitive in an increasingly digital and sustainable global economy.
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SOURCE – McKINSEY
