2023 Predictions: What could be in store for US and international business?

The European business environment is changing rapidly as are the legal implications for US businesses. Many US businesses are finding themselves in a state of flux as they try to keep up with the changes in the legal framework. This can be a difficult task when the rules and regulations across Europe vary greatly.

What are the most important areas of focus that US businesses should be looking out for in 2023? Our US-based experts give their insights into 10 crucial business sectors and their emerging themes for the new year, including: global compliance; data privacy; international expansion; cross-border M&A; fintech; international HR; environmental, social and governance (ESG); life sciences and healthcare; patents and intellectual property (IP); and retail and consumer.

• We expect to see significant enforcement of the EU's New Deal for Consumers,? Felix Hilgert ?says, covering consumer protection, contracts on digital products, and the safety and fairness of digital services. Companies will also need to take more responsibility for compliance within their supply chains and protect whistleblowers. Privacy and ESG will remain a major area of focus in 2023 – for these, we've put together separate sets of predictions.
• Major data privacy updates in 2023 are likely to be of a global scale,? Emily Barwell ?explains. US and EU business eagerly await a new form of Privacy Shield, which has made significant progress in 2022, whilst the UK (no longer in the EU), may also be working towards a version of this framework. In addition, data privacy will continue to be a focus point for artificial intelligence and new technologies.
• Despite global economic uncertainty, international expansion is still an important strategic business priority for many organizations as they resume their growth plans following disruption due the pandemic, says? Christina Nordin . International expansion continues to offer companies a way to gain a foothold in new markets, secure access to new revenue potential and increase its market share. US companies will likely continue to make the most of international opportunities; however, they may take a more cautious approach due to economic uncertainty over the coming year. Expansion plans will have to be re-evaluated and revised, and businesses will have to adapt to new market conditions.
• 2022 was marked by a decline in global M&A activity as a result of geopolitical volatility and economic uncertainty, which was born in part out of rising interest rates and lower equity valuations that created an unwelcome increase in financing costs.? Steve Wilson ?and? Yeliz Atak ?explain that, while 2023 will likely evidence a slow recovery, there will be ample opportunity for international deals, particularly in technology, media and communications. The global energy crisis stemming from Russia's invasion of Ukraine will also propel new activity in the energy sector with investors looking at alternative sources. Finally, a solid US dollar will provide investors with an opportunity to take advantage of the economic downturn in Europe.?
• Yeliz Atak ?and? Kelly Harlick ?predict that 2023 will be a significant year for the fintech industry. It will be the year of increased regulations with the introduction of landmark crypto regulations and increased protection of buy-now-pay-later consumers as well as more technological disruption such as growing investment in embedded finance. The EU continues to lead the regulatory and technological landscape, and its major changes are likely to be replicated internationally and more closely by the US market. With changes in the financial landscape coming in at a rapid pace and competition increasing, fintech needs to find its own space in the digital world and to differentiate itself through user-centric value propositions.
• HR is faced with a constant challenge to foresee, adapt and respond to the new ways in which people want to and expect to work – and 2023 will be no different, say? Rachael Oakley ?and? Alexander Schlicht . Along with the immediate need to respond to concerns about the economic slowdown – and the global restructurings and reductions in forces that it spurs – HR teams are required to meet "business as usual" demands to retain and attract talent that is loyal and the best despite the difficult conditions. This means responding to the technological advances in work and the workplace with artificial intelligence, addressing the potential of the metaverse, balancing demands for flexibility and fairness in a hybrid and remote working environment, and creating an inclusive, purposive, sustainable and representative working environment that employees demand.
• 2023 is likely to be a turning point for environmental, social and governance (ESG) approaches as the business world moves from talking to action, and in some cases, into enforcement, says? Malcolm Pobjoy . Companies are putting details on plans to achieve their ambitions for carbon neutrality and net zero. Governments are dictating specific disclosure requirements. Authorities are taking action including the application of fines to examples of "greenwashing". It is clear that there is still a long way to go for many to embed the objectives of ESG into their core businesses. However, 2023 is the year that action needs to be taken to avoid falling behind or, even worse, falling foul of upcoming regulation.?
• Capital investments in the life sciences industry will continue to be stringent during the economic downtown, explains? Jonathan Cheng (he/him) . Innovation through collaboration will be more prominent between biopharma, digital therapeutics, and medical devices. Artificial intelligence will continue to play an integral role within early-stage drug discovery, diagnostics, patient monitoring technology and more. As hybrid and remote working and a general move to digital consumerism become the norm, old brick and mortar offices and retail buildings are retrofitting into new lab spaces. The EU Medical Device Regulation will continue to be enforced to modernize regulation for safety and risks posed by medical devices, particularly with a new emphasis on "non-medical products".
• A significant shake-up is expected in patent practitioners' approach to intellectual property in 2023,? Caroline Gal ?says. The European patent landscape will shift with the launch of the European patent system. Similar to 2022, the metaverse, artificial intelligence, sustainability, and greenwashing will continue to be areas of focus and development. Additionally, the EU and its Member States seem ready to take measures to tackle political and influencer advertising.
• Retail and consumer businesses will continue to experience disruption in 2023, says? Kelly Harlick . Over the past year, retailers faced challenges across the supply chain, increased pressures of sustainability, and economic uncertainty including high levels of inflation. As retailers adjust to this "new normal", a seamless customer experience and different ways to shop will shape the future of retail.

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