Savings, AI, and Cybersecurity – 2023 Technology Trends

2023 is here. The global economic development forecasts are rather bleak, challenges abound, and the business world is cautiously, even modestly, looking at growth opportunities. However, this does not mean it will stagnate and wait for better times. Quite the opposite – overcoming challenges will require new solutions, so the technology sector is expected to be very active this year.

Save and Digitize

The cost increases brought by general inflation will prompt companies in Latvia to look for ways to save. Not just on electricity or heating bills but also on office supplies. This will accelerate the digitalization of companies and the abandonment of paper document circulation. Movement in this direction began during the pandemic, but it is still progressing rather slowly here. A survey conducted at the beginning of the year revealed that 93.7% of Latvian companies still print accounting documents on paper, while only 6.3% have transitioned to fully digital document circulation. Since the Cabinet of Ministers has supported the proposal to introduce mandatory use of electronic invoices in intercompany document circulation and cooperation with state and municipal institutions starting in 2025, businesses will need to resolve this issue within the next two years. Solutions are already available, and more will emerge. As cost-saving measures take a significant place on the agenda, it can be fairly confidently predicted that more companies will appear offering affordable systems for ensuring electronic invoice circulation.

Interest will also grow in simple, remote document approval options to facilitate document circulation within company workgroups. No wonder Google Docs already includes the Approvals button, which allows signaling to colleagues that changes have been approved.

Cybersecurity Risks Remain High

Accounting software will become increasingly diverse and offer companies more functions than before. Budgeting, forecasting, financial analysis, and similar features will emerge. Moreover, these will be developed not only by local but also foreign teams, which are already showing increased interest in the Latvian market. They come with their solutions and aim to integrate them into existing accounting and business management systems to expand their functionality. 

This year, especially the first half, will undoubtedly be marked by cybersecurity risks. While war continues near the country's borders, businesses must be prepared for the possibility of falling victim to hacker groups. Even if they have not attracted attention or crossed someone's path. Simply put, in wartime, anyone less protected can suffer. 

Therefore, businesses must enhance the protection of computer systems against hacking and ensure against disruptions to the operation of websites or digital stores. For small businesses and associations that cannot independently manage computer system security, the wisest path is to transfer critical information to a certified cloud service provider's server that meets high security requirements. There, data will be better protected, and in the event of an attack, it is possible to accurately trace the damage caused by criminals. 

Efficiency Over Profit

Globally, it can be predicted that changes will affect the much-admired startup environment. If so far investor interest was dominated by easy and large profits, as evidenced by huge investment sums, next year the focus will shift. Investors will pay more attention to startups' efficiency and ability to make money with small investments. As the European Central Bank continues to raise loan interest rates and borrowing money becomes more expensive, investors are trying to hold onto some money and invest it in less risky projects. They are well aware that in the event of an economic recession, invested money could be lost, so preference will be given to more stable, safer startups, even if it means significantly lower profits. 

Artificial Intelligence for Everyone

Already in 2022, the world witnessed several truly promising artificial intelligence tools. They paint masterpieces like the best artists in human history, compose songs, and generate photos of non-existent people that look just like real portraits. It is expected that radical breakthroughs in artificial intelligence will be brought by new systems developed by OpenAI that essentially allow anyone interested to experiment with artificial intelligence and build their own solutions. Seeing the great interest of enthusiasts in OpenAI AI models, it can be fairly confidently predicted that 2023 will bring more new, surprising solutions for businesses. Perhaps some company will even risk entrusting an AI program with the duties of a staff member, hoping to reduce labor costs. While technology enthusiasts will rejoice at such breakthroughs, a large part of the workforce will view such developments with considerable concern. However, in the long term, AI development will benefit both companies and employees, as they will be freed from routine tasks and can focus on creative work. Moreover, "synthetic intelligence" could also endow companies with capabilities they have never had before and create completely new services.