The pace of technological change is accelerating, reshaping every aspect of our lives, work, and leisure. Small businesses are no exception, as they seek to leverage emerging technologies for success. In a recent report by Xero, a leading provider of accounting software, several trends and predictions for small businesses in 2024 were highlighted.
According to the report, approximately 69% of small business owners already use cloud-based technology, citing its flexibility for remote work and its ability to streamline operations, enhance collaboration, and improve financial processes. This embrace of the cloud is expected to continue as small businesses recognize its benefits and efficiency.
Furthermore, the report reveals that small business owners are willing to invest in technology skills, with 86% allocating resources to online or in-person training courses. This focus on knowledge enhancement and improved tech skills demonstrates the commitment of small business owners to stay ahead in the rapidly changing technological landscape.
Looking ahead to 2024, the report identifies five key technology trends that may impact small businesses. Firstly, there is anticipation for an AI-augmented creativity boom, where AI models go beyond statistical similarity to generate new designs and products. This development could significantly assist business owners in manufacturing processes, automation, reporting tasks, and idea filtering. However, it is essential to address ethical concerns surrounding AI systems, such as misinformation, copyright, and bias.
The rise of conversational chatbots powered by large language models is also expected in 2024. These chatbots will have real-time interaction capabilities and can revolutionize human-computer interaction. For small businesses, this technology offers new opportunities in handling customer inquiries and expanding into new markets.
While a full-fledged metaverse may not mature in 2024, advancements in augmented and virtual reality indicate a significant step toward immersive, blended, and connected experiences. Small businesses are likely to explore this space further, introducing new concepts of digital asset ownership.
In the critical decade of climate action, carbon emission reporting could become mandatory for businesses in 2024. The International Sustainability Standards Board’s standards on sustainability may require small businesses to integrate carbon accounting software into their existing platforms, making it an extension of financial accounting. This move will help small businesses contribute to global sustainability efforts.
Lastly, the report highlights the interconnectedness of financial services through a super ecosystem, powered by connectivity. Global platforms like Xero, Apple, Amazon, Google, and Microsoft are expected to enhance the payments ecosystem, facilitating seamless data transmission between banks and third-party providers. This integration will reduce the burden of late payments and unlock the potential of small businesses.
It is important for small businesses and their advisors to monitor these technology trends as they continue to evolve. While the full impact may take years to materialize, understanding and adapting to these trends will be crucial for small business success in the future.
In conclusion, small businesses are embracing emerging technologies and investing in tech skills to navigate the rapidly changing technological landscape. With an anticipated AI-augmented creativity boom, advancements in conversational chatbots, augmented and virtual reality, sustainability reporting, and interconnected financial services, small businesses must stay informed and adapt to these trends to thrive in 2024.
