2023
The year ahead
The year ahead for
digitalisation
Half-year review: how digitalisation is leading the way to the New Normal.
"The way in which AI has landed deep into the public consciousness in 2023 has surpassed expectations. Its continued rapid development and the emphasis in the public narrative around productivity makes it the game-changing technology for digital transformation."
Raza Rizvi, Partner, Simmons & Simmons
The semiconductor industry is operating 15% above capacity to keep up with demand for microchips from new disruptive technologies (cloud computing, 5G, electrified vehicles).
Source: GlobalData, 2022
Digitalisation top tip
Protecting technology assets, data, and the supporting digital infrastructure is not a luxury. Investment in cyber security should remain a top priority.
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“Despite the anticipated ESG headwinds that have prevailed in 2023, we’ve seen an unexpected yet welcome momentum on the nature and biodiversity agenda.”
Sonali Siriwardena, Partner - Global Head of ESG, Simmons & Simmons
There have been more than 2,000 climate-related litigation cases brought globally since 2015, around one quarter were filed between 2020 and 2022.
Source: The Grantham Research Institute at the London School of Economics
ESG top tip
Horizon scan to stay ahead of the ESG regulatory agenda, and actively participate in the policy conversation to make ESG regulations applicable, relevant and achievable.
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million
American workers now describe themselves as digital nomads (up 131% on 2019).
Source: MBO Partners, 2022
Talent top tip
Consider how to build mental health awareness into corporate behaviours to better support employees.
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"The era of cheap money has held back change and covered for inefficiencies in business models. The simultaneity of stresses across markets, coupled with higher borrowing costs, will make business conditions especially challenging in 2023."
James Grand, Partner, Simmons & Simmons
77% of wealth managers are concerned about a financial market downturn.
Source: GlobalData, 2022
Economic headwinds top tip
Economic downturns create opportunity for litigation and class actions. Make sure you have contingencies to deal with this type of activity if legal budgets are cut.
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"On paper, the Edinburgh Reforms are a good opportunity for the UK to become the best-of-breed jurisdiction in terms of its rule book. But will it really happen? I think that question has now been answered emphatically, because this is the most extensive and radical package of financial services regulatory reforms that I think I've ever seen."
Darren Fox, Partner, Simmons & Simmons
By 2028, it’s expected that only 9% of payments will be made in cash, how will this affect international regulation is up for debate.
Source: GlobalData, 2022
Regulatory top tip
Engage with the regulator. Firms with operations in the UK have a once-in-a-generation opportunity to help the regulator determine what is wrong with the system and put it right.
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