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With 2022 ending, 2023 is right around the corner, and it looks like a fight. A recent survey shows that 51% of business executives say we are already in a recession. This survey surveyed executive officers, chief financial officers, and other certified public accountants. Only 12% of the people surveyed showed a positive outlook for 2023.
All this has put pressure on the marketplace. Every year businesses wonder what trends will affect their business and whether they will be able to keep up with the rise in inflation and economic instability. Here are some trends you and your business should be aware of to stay on top in 2023.
Advancing in AI and Automation
AI is about to take over in 2023. AI aids in the creation of accurate sales projections and can automate them. It’s able to do this by looking at the historical data of each company and giving a semi-accurate depiction of what will happen. AI is not seen as something that will replace humans but rather something that will significantly support humans in menial tasks. Humans have one thing that AI will never have, common sense.
AI is most beneficial in the sectors of cybersecurity, machine learning, customer relationship management, and internet and data research and can serve as a digital personal assistant. AI is also playing a factor in the automation of many businesses. It can help in thinking of solutions to inefficiencies that a business might have or tasks such as workflow distribution.
While AI and other Automation technologies require some capital upfront to start, they reduce a business’s liabilities while also increasing its profits. Even with the occurring recession, an investment in AI or automation is your safest bet, as it will increase adaptability and help with any disruptions in your business.
AI can also help with a recurring problem that the workforce, in general, is having, which is a lack of employees.
Job Markets Fluctuation
Since 2020 and the rise of Covid, many people have left their jobs. While most of them are linked to personal reasons, the trend was set from April 2020 to March 2022, with 3% of the workforce quitting their jobs. By September 2022, more than 400 million people had quit their jobs.
Another factor that caused what some are causing “The Great Resignation” is that employees are leaving due to the causes of “high stress” and are moving towards companies that promote a sense of work-life balance. To offset these, companies have been leaning more towards “remote” work or allowing employees a “hybrid” work environment. Fast-moving companies have used this to offset these trends’ workload while allowing employees to work on meaningful and engaging projects. In 2023 businesses will likely see “The Great Resignation” slow down.
Companies, especially this year, should look to retain their employees at all costs. New employees cost more money. Plus, with inflation continuing to rise, you might be paying your new employee more than you would be to an already existing employee.
Inflation and High Intrest Rates
With the consumer price index up 7.7 percent in the year 2022, businesses are likely likely to continue with the factor of inflation. Businesses must walk on a thin line between absorbing the blow themselves or passing the cost on to their customers. While inflation is an overall negative, companies have to look inward to find a way to become more efficient and productive and create better systems to reduce a loss in profit margins.
The two best ways companies fight inflation are cutting unnecessary expenses and elevating the customer experience.
Elevating the Customer Experience
With the fear of inflation and the rise in costs, companies now more than ever need to focus on the customer experience. To keep and maintain loyal customers, businesses are going to have to have to emphasize customer satisfaction.
Businesses could elevate the customer experience by using AI to collect data to see what will benefit their customers most.
While 2023 seems to have a gloomy outlook on it, the trends explained above are what the top business’ are doing to stay on top in their sector.