5 Key Trends Shaping the Tech and Startup Landscape in 2024

The tech and venture scenes experienced a whirlwind of activity in 2023, marked by the swift rise of AI and the often tumultuous journey of startups, both big and small. As we step into 2024, we anticipate a year of relative stabilization, where the fervor around AI is likely to subside, and with any luck, so will workforce reductions. The IPO markets might witness a modest resurgence, and after nearly two years of declining funding, venture investment is expected to plateau.

Here's an overview of the five trends we are closely monitoring in the coming year.

1. AI Buzz Deceleration

The trajectory of AI, particularly AI investment, will be a focal point in 2024. While 2023 saw a norm of $100 million-plus funding rounds, discussions are emerging about a potential market pullback. Soaring valuations and uncertainties about the number of successful players in the generative AI market could lead to a cautious stance among investors. Legal and regulatory challenges for AI companies, both in the U.S. and abroad, might contribute to a slowdown in the surge of funding observed in 2023. The role of major tech players, such as Nvidia, Salesforce, Microsoft, and Google, remains crucial in sustaining AI funding.

2. Venture Fund Slowdown

In contrast to the boom of 2020 and 2021, the venture capital landscape is poised for a slowdown in 2024. The aftermath of startups revising valuations downward may impact VC firms themselves. The uncertainty surrounding firms like OpenView is indicative of a trend expected to continue, where new funds become challenging to raise. Established firms, including Founders Fund and Tiger Global, have already adjusted their fundraising plans, and more such adaptations are anticipated.

3. Tech Layoffs Continue

Despite a slowdown, tech layoffs are not expected to cease entirely in 2024. With over 300,000 tech workers in the U.S. losing their jobs since early 2022, the job cuts are likely to persist. Although not reaching the scale of the mass layoffs in late 2022 and early 2023, ongoing shutdowns of startups and some large companies making cuts suggest that workforce reductions will endure. The challenging outlook for the 2024 IPO market and fundraising difficulties for startups contribute to this trend.

4. Shift from Negative to Positive Narrative

After a year of negative comparisons in 2023, 2024 is poised for a shift towards a more positive narrative. While several sectors experienced a significant decline in investment throughout 2023, the new year is expected to witness an easier crafting of positive year-over-year funding narratives. Sectors like consumer products and e-commerce, which have faced reduced investment in recent quarters, are likely to showcase a notable upturn. Overall, startup investment is anticipated to increase in 2024, especially with tech stocks showing positive momentum.

5. Cautious Optimism for IPOs

While some IPOs might make a return in the upcoming year, a robust market for new listings is not expected. Public-market investors are exhibiting selectivity, prioritizing profitability over unchecked growth. Larger, more established companies capable of sustaining substantial market capitalization are of particular interest. This cautious stance may lead some companies to delay their IPOs until 2025 or beyond. Despite the presence of numerous private companies with valuations exceeding $1 billion on The Crunchbase Unicorn Board, the IPO market may not witness a full-blown resurgence in the near term.

AI Specialized in Machine Learning: Anticipating Healthcare Trends for 2024

In the upcoming year, the healthcare sector is poised for a surge in artificial intelligence (AI) applications, prompting a closer examination of various AI processes. Industry trends suggest a shift from general AI to more specialized and contextual AI and machine learning systems in healthcare, addressing specific medical challenges like disease diagnosis, treatment planning, and patient management. The focus on purpose-built AI applications aims to streamline administrative tasks, fast-track referrals to specialists, and obtain approval for critical medications.

Trends in the healthcare industry indicate that AI's growth may lead to a skills gap, necessitating specialized IT training. The increasing demand for better work-life balance among healthcare professionals has accelerated the use of AI to handle administrative tasks. However, a significant portion of the workforce lacks training on how AI will impact their roles. Insights from historical technology adoption trends highlight potential disparities in AI adoption based on demographics, income groups, and geographic areas. To ensure equitable AI adoption, industry experts recommend targeted training programs designed to cater to diverse learning needs and backgrounds.

Anticipated trends also suggest that AI's growth will lead to increased scrutiny of processes in healthcare. This surge in AI scrutiny may result in advancements in explainable AI (XAI), which is crucial for providing clear explanations of AI-driven diagnoses and treatment recommendations. Transparency in AI decision-making is essential for building trust among healthcare providers and patients. Healthcare organizations will need to gain a comprehensive understanding of how their information and data are processed. Effective analysis of existing processes, facilitated by robust methods such as process intelligence, will be imperative. As AI continues to evolve in healthcare, industry trends underscore the importance of prioritizing training and reskilling initiatives to ensure employees are well-prepared. Various resources, including workshops, webinars, open-source tools, and online platforms, offer comprehensive coverage of relevant topics such as machine learning, deep learning, and AI applications. Proactive and inclusive training strategies are essential for the equitable adoption and beneficial impact of AI in healthcare across all demographics.