AI industry booming amid ‘tech recession’

The Great Resignation is an economic trend that we have seen in 2022. However, with a recession approaching, many are concerned about the future of hiring. Large, profitable technology companies have reported laid off this year, with more job cuts expected. But while this trend may seem daunting, the undercurrent is actually quite promising.

Within the many sectors of technology, some market segments, including artificial intelligence (AI), are rapidly expanding and looking for new perspectives. Times like these are usually tense, but there are companies looking at the bright side of things to come and planning for expansion.

Expansion of the tech industry through advancement and hiring

While there are reports of downsized teams and lack of funding, this is not the case with artificial intelligence. As we’ve seen in recent years, AI has been a continuing hot spot, and the market is expected to grow $76.44 billion by 2025, with an accelerated growth rate of more than 21% per year.

With the sheer amount of great technical talent around the world and the growth of AI, there is no doubt that there are plenty of opportunities available for workers in the industry. That’s especially true as they begin to shift to new areas of the industry as companies pull back on hiring. This timing gives AI a huge opportunity to expand. Some of the world’s largest companies have been benefiting for years from the transformative power of AI in areas such as search, ad targeting and recommendations.

As the technology has matured, new use cases have opened up worlds of opportunity for startups and Fortune 500 companies alike. No longer a niche market, AI is growing incredibly fast and bringing jobs to the table.

The transformative power of AI is enormous and we have seen a turning point in recent months. The advancements have marked a seismic shift in technology – away from traditional development and towards something entirely new, changing technology as we know it.

AI offers opportunity amid layoffs in other technology sectors

AI is currently the light at the end of the tunnel in technology. Companies, including Meta, no longer support projects that lose money; instead, they’re making room for growth in their AI research and VR labs. While the rest of the industry may be downsizing, it’s important to look at how far AI has come and see the opportunities available in this ever-changing market. With the amount of great technical talent around the world, individuals should shift their focus to see what the AI ​​industry has to offer.

Future of the tech industry

We may not know what the future holds in terms of layoffs and the labor force, but based on past events and economists’ insights, it is likely that the technology market will change in a coming recession. AI will undoubtedly change, but it will continue to make positive advancements, including language translation, conversational AI, facial recognition, targeted ads, and much more.

It will be interesting to see how the tech industry emerges from the recession. While there are some recession-resistant companies, the recession can still hit them in one way or another. On the other hand, a handful of creative and evolving technologies will be put to the test in the coming months; we’ll see if they can withstand the recession and what’s to come.

The sense of security that the technology industry once had is also beginning to wane as workers lose confidence in the reliability and stability of their jobs. As some of the world’s largest tech companies are already laying off workers, many are wondering what will happen when the recession hits.

Staying hopeful in an evolving industry

There is no shortage of funding in AI right now, but when choosing a funding partner it is vital to ensure that the partner embraces and supports the same long-term plans as the company, such as leveraging advances in AI and being strategic when it comes to hiring plans.

Adhering to first principles and being pragmatic about how we execute on this vision in a time of extreme uncertainty is undoubtedly the right thing to do now more than ever. It’s good to go back to the older and more realistic realities of valuing revenue, people, customers and cost awareness. While no industry will survive a recession unscathed, the technology industry is extremely dynamic and will have no problem adapting.

Nick Lynes is co-founder and co-CEO of Flawless