What To Take Away From 2023
With 2023 drawing to a close, we look back on the topics that resonated most to reflect on what we learned and what we’ll take forward into 2024.
Generative artificial intelligence is coming in house?
Creating internal generative AI tools allows for a low-cost yet secure environment for problem solving and experimentation. Key to the creation of Marsh McLennan’s own tool — LenAI — was a long-standing focus on managing risk. Close collaboration between multiple groups from across the firm were able to deploy this technology quickly because of the security standard that was already foundational to Marsh McLennan's business. Among a growing list of applications, LenAI is assisting employees by summarizing meetings, extracting key data from documents, and writing drafts of emails and presentations.
Aviation takes off again, but buckle your seatbelt?
We estimate that the worldwide commercial aviation fleet will expand 33% to over 36,000 aircraft by 2033 — a compound annual growth rate of 2.9%. Aviation’s global aftermarket, which provides the maintenance, repair, and overhaul services to keep the fleet flying, is also expected to grow to $125 billion by 2033 — a compound annual growth rate of 2.9%. And despite rising air fares and a year of delays and cancellations in many of the world’s biggest markets, travelers seem undeterred.??
Deposit tokens are changing the digital money ecosystem??
The possible adoption of blockchain for payments and complex commercial transactions at scale, including sophisticated institutional activity, raises questions as to what forms of digital money will be best suited to support the transfer of value on blockchain systems. Deposit tokens — the equivalents of existing deposits, held by a licensed depository institution such as a commercial bank, but recorded on a blockchain — are a promising, emerging form of digital money.??
Generative artificial intelligence will reinvent insurance??
Generative AI is ushering in new opportunities for insurers across the value chain — from strategy and product design, marketing and distribution, pricing and underwriting to claims and operations, and governance. Three illustrative case studies — of a life insurance agent, a commercial underwriter, and a policyholder — show the impact leveraging AI can have on operational efficiency. ?
Sustainable transformation requires fundamentally changing how organizations work
In our survey of 240+ C-suite executives in the Americas we found that companies that led successful transformations focused on tangible impact to create value for clients, shareholders, and other stakeholders; changed how they worked to make their transformations sustainable in the long term; and rallied the organization behind the need to change. Those that fully achieved their transformation objectives created headroom in their cost structure to fund their future growth, which will be critical in an uncertain market.?
Exchange-traded funds are fueling market opportunities?
The growth in exchange-traded funds (ETFs) has been the single most disruptive trend within the asset management industry over the last 20 years. Historically, ETFs have been predominantly associated with passive investments — most often replicating performance of broad equity indices. We believe the ETF landscape is just embarking into a next stage of growth — this time fueled by the rise active ETFs. We expect a significant part of this growth to come from active ETFs, creating a revenue opportunity for the industry that asset managers cannot ignore — irrespective if they are active in the ETF space today or not.??
Five megatrends will shape the future of airports??
The state of travel — and the way people move around the world — will change dramatically in the coming decades as global priorities shift and new technologies become available. Airports will be core drivers of industrywide change, while themselves being transformed in the process. Achieving net zero, technological innovation, intermodal connectivity, a changing workforce, and the passenger experience revolution will shape how airports look in the next 10, 20, 30 years.??
Read through our previous editions of Now You KnOW and stay subscribed for more insights in 2024.?
Thank you for adding on Now You KnOW to my what I already know list of several key trends that have shaped 2023: All the best to you and Team, keep up the great work 2024.