As 2022 ends and 2023 begins, the technology industry is shifting its priorities. Larger companies like Google and Microsoft maintain monopolies, while others struggle to deal with what some call a tech recession. Big ideas like the blockchain and the metaverse intrigue Silicon Valley, yet they struggle to find a meaningful presence in the economy.
Here are five trends facing the technology industry in 2023.
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The rise and fall of major social networks: The networks that we previously assumed to be pillars of the industry are facing both social and economic pressure. Twitter has struggled under all of the anxiety that comes with Elon Musk’s takeover of the company. Meta is losing billions in an effort to shape the metaverse. TikTok is facing increased regulatory pressure from lawmakers over its Chinese connections.
Semiconductors in the United States: The CHIPS Act, signed by President Joe Biden in August, authorizes $52 billion in funding to incentivize manufacturers to construct semiconductor factories in the U.S. The bill was meant to push back on Chinese dominance of chip manufacturing. A number of companies have already announced plans to invest in new plants in the U.S. following the bill’s enactment.
At the same time, the Treasury and Commerce departments have moved to restrict Chinese access to some chip tech and other key technologies, raising tensions between the two countries and escalating the rivalry in cutting-edge innovation.
Artificial intelligence in the market: Apps like Midjourney and ChatGPT have offered users easy access to AI-driven software that can create art or entire stories based on simple prompts. The devices have attracted popularity online as people have used them to create everything from fan fiction to written essays. However, others are concerned about the ethical and financial implications of the technology for those in the creative fields. Users should expect these technologies to flourish in 2023 as programmers find more unique ways to use them.
Blockchain and Web 3.0’s recovery: While stories like Luna’s collapse and FTX’s fraud may sour some consumers to the potential of crypto and the blockchain, the industry will likely continue to expand into everyday life. Congress could also enact legislation to set guardrails for crypto investors meant to prevent abuses like those alleged to be carried out by Sam Bankman-Fried.
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Big Tech scrutiny: With Republicans taking the House in January, political observers expect to see more hearings organized by the House looking into Big Tech communications regarding COVID-19 censorship and the 2020 elections. Democrats in the Senate are also interested in seeking the passage of antitrust legislation in the near term. Still, the split Congress makes compromise or the passage of controversial legislation reasonably tricky.
