10 predictions for digital in 2018

In my role at Digital McKinsey, I am fortunate to be able to spend time meeting with digital leaders across sectors and markets. Based on the trends I am observing, here are a few personal thoughts on what 2018 may hold from a digital point of view. They are broadly in order of confidence (i.e. the further you read the more speculative it gets!). I would appreciate feedback on these so please comment or share, thank you.

1. Digital and analytics investment will continue unabated, especially in B2B. Unexploited digital potential remains substantial, especially in the B2B world. Firms will continue to invest heavily in upgrading all aspects of digital capability. Investments in data science capabilities in particular will accelerate.
2. Cyber will dominate the board agenda. A few firms suffered heavily in 2017. More will suffer in 2018. Boards will spend increasing time worrying about how to manage a risk that is hard to measure and continually shape-shifting.
3. Cloud will become the default infrastructure choice for corporates. As the cost and risk of cloud vs. on-prem. alternatives shifts, corporates will adopt cloud by default. The risk to each individual corporate will decrease, but systemic risks will increase, causing regulators to take note.
4. Automation will finally impact productivity...but also employment. Improved technologies (e.g. cognitive, RPA) are making automation very cost effective. Job losses due to automation will accelerate, despite mounting social pressures.
5. Disruption will accelerate in digitally-susceptible sectors. 2017 saw incumbents starting to fall by the way side in sectors such as retail that are susceptible to digital attackers (typically sectors with high automation potential, low regulation and low loyalty). More 'Toys-R-Us' type events can be expected in 2018.
6. AI will continue to amaze and terrify, but real-world impact will remain modest. Deep Mind et al. will continue to demonstrate extraordinary leaps forward in 'narrow' AI. But AI will remain a niche discipline during 2018 as few firms will have built the capability to implement real-world solutions.
7. Blockchain will struggle to find mainstream application. Difficulty agreeing standards, and concerns over environmental impact will hamper at-scale adoption, outside of mandated applications by states or regulators.
8. 'Tech-lash' will intensify. Concerns over market power, privacy, taxation, hate-speech, psychological impact etc. will intensify. Some technology firms will struggle to adapt to rapid shifts in regulatory stance and customer sentiment.
9. Digital, analytics and IT will converge under common leadership. A new generation of technology leaders will emerge with experience that spans digital, analytics and IT. This will facilitate converge of Chief Digital, Data and Technology Officer roles.
10. Balkanisation of the internet will begin. Nation states will become increasingly concerned by the national security risks posed by an open global information infrastructure. Some states will begin to replicate 'the great firewall of China' and seek greater control over their domestic technology sectors.