2022 Year In Review
2022 is coming to an end, and the Business & Tech world witnessed a lot of changes, ups and downs
this year. Topics and major events like Cryptocurrency, Artificial Intelligence and its impacts,
Inflation and layoffs dominated 2022. In this blog, we take a look back at the major business & tech highlights that defined 2022, the impact it made and things to look forward to in 2023.
INFLATION
What is Inflation?
In simple terms, Inflation means the gradual loss of purchasing power reflected when the prices of
goods and services increase in an economy over a period of time.
Therefore inflation is measured by the percentage change in the Consumer Price Index (CPI), the price index of the average purchased consumer goods and services.
Inflation 2022
Almost half of countries worldwide are witnessing inflation rates of more than 10% this year, with
five reaching triple figures. Zimbabwe has the highest inflation rate in the world, standing at 269%.
Ukraine emerged as the country with the highest inflation rate in Europe due to war disruption.
Speaking of Ukraine War, according to Mark Zandi, Chief Economist of Moody’s Analytics, the
Russian invasion of Ukraine was also one of the leading causes of high inflation.
What are the Common Causes of Inflation?
Some of the common causes of Inflation are increase in Money Supply, Government spending, Cost
production and decrease in supply of money, decrease in the demand for goods and services etc.
LAYOFFS
Undoubtedly 2022 witnessed a staggering number of layoffs from startups. More than 50 startups laid off close to
around eighteen thousand employees this year, and these startups include 12 unicorns Unacademy,
BYJU’s, OYO, Ola, Meesho, MPL, Chargebee, Cars24, LEAD, Innovaccer, Udaan and Vedantu.
The Indian startup ecosystem also wasn’t in a smooth ride as the funding was significantly lower
compared to 2021.
Why do layoffs happen? What are some of the common reasons?
Some common reasons why companies lay off employees include:
1.) Financial difficulties: When companies go through a financial crisis or face bankruptcy, they
usually lay off employees to reduce costs and try to stay afloat.
2.) Changes in market demand: If the products or services offered by the company are no longer in
high demand, it may lay off employees to reduce excess capacity.
3.) Restructuring: Laying off employees as part of a restructuring effort to streamline operations,
improve efficiency, or shift focus to new products or markets.
4.) Mergers and Acquisitions: When two companies merge or when one company (acquirer)
takeover another company (Target), layoffs happen to avoid duplication of roles and functions.
5.) Outsourcing: Outsourcing is also one of the reasons for layoffs, where in some cases, companies
lay off employees and contract out certain functions and focus areas to 3rd parties.
Take a look at our Layoff tracker of India for the year 2022:
RESIGNATION
2022 saw a record number of employees quitting their jobs for several reasons, including career
changes, bad workplace experience, slashed salaries, overtime shifts, etc.
Also known as the great resignation, the voluntary mass resignation of employees has been a
significant concern for employers this year and soon affected India too.
The great resignation started in USA two years back, followed by a few other countries, eventually
finding its way to India. It all began when companies brought new rules to the workplace after the
COVID-19 pandemic. Also it brought drastic changes in the workplace, which negatively affected the employees leading them to take the hard decision.
What are the leading causes of great resignation?
1.) Overtime Shifts
2.) Slashed Salaries
3.) Restriction of leaves
4.) Extended work hours
5.) Employees choosing work-life balance over Salary
6.) Toxic Work Culture
7.) Increased scope in freelance and Work From Home jobs.
BUSINESS SUSTAINABLITIY
Reducing the impact of its activities on the environment and society has become a top
priority for companies this year. Consumers and investors are considering sustainability when
investing their time and money in companies.
Brands are turning towards technologies that adapt to the planet’s needs and help achieve
business sustainability. For instance, according to a survey, some of the common
sustainability initiatives brands invest in 2021 and 2022 are tracking emissions, improving
manufacturing efficiency, solutions for recycling products etc.
Take a look:
Find more statistics at Statista
What is business sustainability?
Business sustainability is a company’s ability to do business without negatively impacting
the environment, community, or society but simultaneously meeting the needs of the
present.
By adopting sustainable practices like using eco-friendly products, energy-efficient
equipment, recycling materials, installing solar panels, etc., they not only can reduce their
environmental impact but also improve their reputation, increase customer loyalty, and
reduce costs in the long run.
CRYPTOCURRENCY
What is cryptocurrency?
Cryptocurrency is a virtual currency that uses decentralized technology to secure financial
transactions without central authority or a financial institution. Moreover Cryptocurrency uses cryptography for security and a crypto wallet to securely store, send, and receive cryptocurrency.
The Ups and Downs of Cryptocurrency in 2022
The cryptocurrency was filled with ups and downs this year. The fall of the FTX cryptocurrency
exchange, price fluctuations, regulatory challenges, Crypto scams and thefts contributed to the crash
of significant cryptocurrencies this year.
Crypto Highlights in 2022:
- According to Singapore-based blockchain firm TripleA, the global crypto users went over 320 million users in 2022.
- India ranks second worldwide regarding the highest number of crypto holders, with the USA on top with 46 million crypto holders.
- 2022 was the biggest year for digital-asset heists as crypto hackers stole more than $3 billion worth of cryptos.
- One of the world’s largest cryptocurrency exchanges, FTX, shocked the crypto world and investors when they filed for bankruptcy.
- The two most popular and largest cryptocurrencies, Bitcoin and Ethereum, lost around two-thirds of their value in 2022. Other popular cryptocurrencies also saw a decline in value.
ARTIFICIAL INTELLIGENCE
Artificial Intelligence by definition:
It is the ability of a machine or computer system to perform tasks such as learning, problem-solving, and decision-making, which usually requires human intelligence.
In simple words, Artificial intelligence is the simulation of human intelligence processes by
computer systems.
How do businesses use Artificial Intelligence?
Definitely Artificial Intelligence has greatly impacted business this year, with companies of various
sectors implementing AI to automate tasks and increase efficiency.
Also Artificial intelligence (AI) is used by businesses in various ways, like Automation, Predictive
Analysis and Marketing & Sales, Customer service, Cybersecurity etc.
How Businesses Used Artificial Intelligence in 2022
Credit: Mckinsey & Company
AI in 2022 has promised endless opportunities and growth for businesses in the coming
future. Also the usage of AI capabilities in organizations has doubled from 2018 to 2022, with Natural
language generation, Deep learning, and Robotic process automation on top.
In the Finance industry, some of the main AI capabilities used this year were Trading,
Personalized banking, and Fraud prevention.
Many AI-based trading platforms and Apps have emerged this year, leading to a massive
demand for these platforms. AI is also helping in personalized banking by improving
customer relationships, creating a financial plan, understanding the risk factors of specific
policies etc. Subsequently fraud prevention has been the main AI capability used by banks and fintech,
helping detect suspicious user behaviour and spending habits.
Marketing also is one of those industries that was hugely impacted by AI, especially this
year. Marketing agencies and companies have already invested a lot of money in AI.
Marketing automation, Sales, CRM, Customer profiling, and even SEO too have benefitted from
Artificial Intelligence.
Some of the main trends of artificial intelligence in marketing for 2022 are:
AI-Powered Content:
Many AI content generation tools have emerged this year for digital marketers and SEO professionals to create website content.
Market segmentation and Targeting:
AI that segments audience using algorithms, user behaviour, and other metrics helping marketers create personalized and targeted ads.
Marketing automation:
Some of the commonly performed automated tasks like email and
chatbot automation, audience segmentation have saved a lot of time for marketers. Marketing
automation also helps in managing campaigns across channels and auto-scheduling messages.
Data Analysis and Insights:
AI can collect different data types, gain smart insights and help marketers make better campaign decisions too.
Artificial Intelligence in Logistics:
Automated warehouses were robots, and automated vehicles carry out the transportation of
goods. Companies are manufacturing fully automated warehouse replacing humans with
hundreds of robots, reducing overall costs.
Automobile:
Automobile company Tesla has already produced self-driving cars a few years back. Subsequently 2022
has seen more companies coming forward to produce autonomous vehicles and a lot of
autonomous vehicle startups.
Healthcare:
Obviously AI is being used in healthcare for diagnosis and treatment, drug discovery, patient care,
clinical decision support, etc. Also it has shown a lot of potential in transforming many aspects
of healthcare, improving its efficiency and effectiveness. Moreover the algorithms and systems that help in
chronic ailments detection and treatment and personalized healthcare have already become a
reality.
NFT
What is exactly is NFT? How does it work?
Non-Fungible token (NFT) is a digital/virtual asset built on decentralized blockchain
technology and represents ownership of a unique item or asset.
NFTs became popular earlier this year, and users often used it to represent ownership of
digital assets, such as art, music, videos, and collectables. NFT provides a secure, verifiable
way to prove ownership of digital assets. Celebrities around the world in different industries
used NFTs to sell their digital artworks and collectables for millions of dollars, and some
musicians released their music as NFTs.
The Downfall of NFT and Its Causes.
NFT started declining soon after the crypto crash in May – June 2022. According to source,
Dune Analytics, the trading volume dropped from a record high of $17 billion in January to
$466 million in September.
What Caused the collapse?
- As mentioned above, the crypto crash was one of the first and foremost reasons for the NFT collapse. The May crash affected the NFTs, too, wiping out billions of dollars from the market.
- NFT scams – The marketplace is also filled with individuals selling fake and ridiculously priced NFTs, stealing the work of others and representing it as their own.
- The industry’s failure to innovate beyond using an NFT as a profile picture on social media prevented new users from entering the market.
- No clear use cases for NFTs in the real world – NFT works well for digital arts, but the same cannot be said about digital assets. What are you going to do with a bunch of digital assets like clothes or sneakers?
- NFT is basically for the rich to become richer. Lack of diversity and inclusivity in the NFT marketplace, with many sales being dominated by a small group of wealthy collectors.
These are some of the main reasons for the downfall of NFTs. There are also other reasons,
like high transaction fees, Environmental consequences.
METAVERSE
What is Metaverse?
Metaverse, in simple terms, is a virtual shared space where people can interact with each
other and with digital objects and experiences in a way that is similar to the real world.
Obviously it is a shared immersive word created by converging virtually enhanced physical reality and
physically persistent virtual space, including the sum of all virtual worlds, augmented reality,
and the internet. Also metaverse is facilitated by the use of virtual reality and augmented reality
headsets.
However the Metaverse concept emerged in late 2021 and dominated the internet landscape
throughout 2022.
Metaverse And Its Future
The Metaverse is considered as the next evolution of the internet, where people can access
information, communicate with each other, participate in immersive experiences and interact
with digital objects and environments.
When it comes to business, Metaverse can potentially shape the future of companies in the:
Virtual Meetings/Events: The Metaverse could become a platform for virtual meetings and
events, allowing businesses to hold meetings and conferences in virtual offices where
attendees can enjoy a high-quality and similarly engaging experience.
Virtual retail: The Metaverse can take e-commerce to a different level by providing a new
platform for e-commerce businesses to create immersive shopping experiences and sell
products and services to customers too.
Virtual real estate: The Metaverse could become a platform for virtual real estate, with
businesses buying and selling virtual properties and using them for various purposes, such as
virtual offices, training facilities, and event spaces.
Virtual training and education: The Metaverse can provide interactive and immersive
learning experiences through virtual training and education to employees and customers.
CHATGPT
ChatGPT was launched by OpenAI in November this year and became hugely popular among
tech industries for its amazing capabilities and Conversational style responses to queries.
ChatGPT took the internet by storm because of its ability to accomplish various tasks and
answer any questions put forward by the users.
What is ChatGPT?
ChatGPT is an AI Chatbot developed by OpenAI that uses Natural language processing
(NPL) to generate human-like responses to queries. Also it can write and debug codes, answer
questions, solve mathematical problems, write detailed essays etc.
What are some amazing capabilities of ChatGPT?
- Write and debug Codes- ChatGPT can write codes for your websites or Apps and debug them too.
- Mathematical Calculations- It can do mathematical calculations and solve problems.
- Write essays and articles: It can write detailed essays and articles based on any topic you give
- Personal Assistance Tasks- ChatGPT can even be your AI assistant and do tasks like sending emails, suggesting ideas, creating diet plans etc.
- Create a marketing plan- Ask it to create a marketing plan or a strategy for you; ChatGPT will come up with one in just a matter of seconds.
Other amazing ways the internet uses ChatGPT are by generating AI prompts, explaining complex concepts in simple words, SEO tasks, etc.
ChatGPT received positive responses from the tech world, but it is important to note that it also has a few limitations, which the creators mentioned. ChatGPT can create a lot of impact not just in the tech world but also in other domains like marketing in the future. The AI tool is currently free to use, so make sure you try the tool out before it gets monetized.
SOCIAL MEDIA
Social Media in 2022
The Social Media landscape is everchanging, but 2022 was no different. A lot of new trends
emerged in 2022 across several social media platforms too.
Short form videos
Instagram reels and short videos on other platforms are still the most preferred and engaging
format in 2022. It is equally important with influencers and brands prioritizing it in their social media strategy.
Because of the high engagement rate, almost all major platforms have their own short video
format.
Brand Invest More in Social Commerce
Buying and selling products or services on social media platforms is called Social Commerce.
More than 70% of brands have already committed to social commerce, including small
businesses and enterprises. People purchasing products and services from social media have
seen huge numbers this year and are expected to grow next years, inspiring the major social
networks to invest in social commerce.
Livestream shopping
The livestream shopping e-commerce trend is becoming quite popular on social media. One
of its reasons was the ongoing pandemic that fueled its growth since brick-and-mortar
shopping wasn’t as available as before. Apparel and fashion, Beauty, and Consumer
electronics are the top categories in Livestream shopping. Livestream shopping is already
hugely popular in China.
The way Livestream works is that brands and influencers go live through an app, describe the
model and its features, and test various products for their audiences. People who watch these
live shows get to share any concerns they might have regarding the product and have the
option to purchase the products from the platform itself.
Livestream is very effective because it creates a sense of urgency among the audience,
tempting them to buy the products immediately. Several leading e-commerce platforms have
already started working on this feature, with Amazon recently rolling out a Livestream
shopping feature in the US.
AI in Social media
AI is taking over social media, too, as many AI-powered features are emerging on several
social media platforms.
AI tools like ChatGPT and Jasper are helping content creators and influencers curate content
and strategy ideas, while AI art tools like Midjourney are used to create stunning visuals for
social media.
We will see more of AI in the coming years, and it indeed will create a lot of impact on social
media.
Read blog on Union budget 2023 of India and their major announcements made by the Union Minister of Finance.
