The trend: While the rest of the US economy rallies, tech is going through a recession.
Collectively, Apple, Microsoft, Amazon, Alphabet, and Meta have lost more than $3 trillion in market value this year, per Bloomberg.
Blinded by power: No tech leader knew that consumer priorities would shift and a war in Ukraine would exacerbate inflation and supply chain disruptions after the industry’s explosive pandemic growth.
Yet part of the industry chaos is the result of its growth in power, creating a disconnection between companies’ leadership and average consumers and rank-and-file workers.
Repeating mistakes: The sector’s wave of investment in advancing AI has strong potential for lucrative returns to help it recover. Yet its social disconnect could continue to be a pitfall. Case in point: Meta’s Galactica AI model that only survived three days.
Consumers and businesses are showing that they aren’t automatons who’ll just spend money on things because they’re programmed to, whether it’s virtual worlds, the cloud, or AVs. Making products and services successful requires understanding evolving demand and relationship-building.
For example, generative AI has revenue potential from advertisers and content creators.
With investors, governments, and individuals seeking solutions for pressing problems like cyberattacks and climate change, the industry could devote more resources to meeting real-time demands.
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