Frugality, AI, and cybersecurity – tech trends for 2023

2023 is here. Global economic growth forecasts are quite bleak, challenges are numerous, and the business world is viewing growth opportunities with caution, even restraint. This does not mean, however, that it will stand still and wait for better times. On the contrary, overcoming these challenges will require new solutions, which is why the technology sector can expect a very active year.

Saving and digitizing

The rise in costs brought about by general inflation will encourage companies in Latvia to look for ways to save money—and not just on electricity or heating bills, but on office supplies as well. This will accelerate the digitalization of businesses and the move away from paper-based document workflows. While the movement in this direction began during the pandemic, progress here has been quite sluggish. 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 workflows. Since the Cabinet of Ministers has supported a proposal to make the use of electronic invoices mandatory for business-to-business document exchange and for cooperation with state and municipal institutions starting in 2025, businesses will have to resolve this issue over the next two years. Solutions are already available, and there will be even more to come. Since austerity measures have become a significant part of the agenda, it is safe to predict that more and more companies will emerge offering low-cost systems for electronic invoicing.

There will also be growing interest in simple, remote document approval options to facilitate document workflows within company workgroups. It is not without reason that Google Docs has already added an "Approvals" button, which can be used to signal to colleagues that changes have been approved.

Cybersecurity risks remain high

Accounting software will become increasingly diverse and offer companies more features than before. Capabilities for budgeting, forecasting, financial analysis, and the like will emerge. Moreover, these will be developed not only by local teams but also by foreign ones, which are already showing increased interest in the Latvian market. They are bringing their own solutions and looking to integrate them into existing accounting and business management systems to expand their functionality.

This year, and the first half in particular, will certainly be defined by cybersecurity risks. As long as the war continues just beyond the country's borders, businesses must be prepared to fall victim to hacker groups—even if they have not drawn any attention to themselves or "crossed anyone's path." In wartime conditions, any less-protected entity can suffer.

Therefore, businesses must improve the protection of their computer systems against hacking and safeguard themselves against disruptions to their websites or digital stores. For small businesses and organizations that cannot manage their own computer system security, the wisest path is to move critical information to a certified cloud service provider that meets high security requirements. Data will be better protected there, and in the event of an attack, it will be possible to precisely track the damage the criminals managed to inflict.

Efficiency over profit

On a global level, it can be predicted that changes will affect the much-admired startup environment. While investor interest in easy and high profits—evidenced by massive investment sums—has dominated until now, the focus will shift next year. Investors will pay closer attention to the efficiency of startups and their ability to generate money with smaller investments. As the European Central Bank continues to raise interest rates and borrowing becomes more expensive, investors are trying to hold onto some of their capital 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, secure startups, even if it means significantly lower profits.

Artificial intelligence for everyone

In 2022, the world was introduced to several truly promising artificial intelligence tools. They paint pictures just like the greatest masters in human history, compose songs, and generate photos of non-existent people that look just like portraits of real individuals. It is expected that new systems developed by OpenAI will bring a radical turning point to the field of artificial intelligence, essentially allowing anyone interested to experiment with AI and build their own solutions. Seeing the great enthusiasm for OpenAI's AI models, it is safe to predict that in 2023 we will see ever-new, surprising solutions for business. Perhaps some companies will even risk entrusting an AI program with the duties of a staff member in the hope of reducing labor costs. While people in the tech world will rejoice at such breakthroughs, a large portion of the workforce will view these developments with considerable concern. However, in the long run, the development of artificial intelligence will benefit both companies and employees, as they will be freed from routine tasks and able to focus on creative work. Furthermore, "synthetic intelligence" could, in the foreseeable future, endow companies with capabilities they have never had before and create entirely new services.