As the level of modernization increases, companies are investing more in new technologies for improving production efficiency, market expansion and new product innovation. These technological advancements will provide new growth opportunities in the world of business.
While technological advancements like artificial intelligence and cloud computing are expected to dominate the business space over the coming five years, these will be accompanied by various social and economic trends that will boost business growth.
According to a report by the World Economic Forum, over the period from 2018 to 2022, trends like the adoption of new technologies, expansion of wealth in developing economies, expansion of education, along with progress in new energy technologies are expected to drive business growth.
Over the same period, factors like protectionism, cyber threats, climate change, ageing societies, changes in government policy, talent migration laws and global macroeconomic growth are likely to have negative impacts on the business environment.
Factors like shifts in national economic growth and advances in artificial intelligence can go either way in terms of their impact on businesses depending on the situation.
In terms of adoption of technologies by businesses, 85% of the companies that responded to the survey undertaken for the report are likely to adopt big data analytics. A large number of companies are likely to adopt app and web-enabled markets, Internet of Things, machine learning and cloud computing.
The report indicates that while one set of jobs will become more important over the next five years, another set will become dispensable. The 10% decline in employment across the second set of jobs is expected to be offset by an 11% increase in employment across the first set of jobs. This would translate into a loss of 0.98 million jobs and the creation of 1.74 million jobs.
Despite the job gains outweighing the losses, the report specifically states that there will be a significant shift in the quality, location, format and permanency of new positions. Jobs such as AI, machine-learning and big data specialists, digital transformation and new technology specialists as well as innovation professionals are expected to gain more prominence.
Positions that are likely to become redundant include data entry clerks, accounting and bookkeeping clerks, assembly and factory workers and cashiers. Managerial and advisory roles such as chief executives, human resource specialists and financial advisers are expected to remain stable.
The stability and demand for positions such as operations managers and big data analysts are likely to fluctuate depending on the industry. Based on the shifts in the industrial space, companies will have to take stock of the situation and make the necessary investments in automation and reskilling.