COVID-19 is changing the way we work and live. With the increase of remote working and reliance on screen-time for entertainment and social interaction, the digital industry is said to be booming. The Financial Times reports, “Tech companies are still hiring feverishly as they move to take advantage of a world shifting increasingly to digital as a result of the coronavirus, despite mass lay-offs elsewhere and growing concerns over plummeting global markets.”

Companies with existing online infrastructure are seeing new subscribers, more time spent on digital platforms and increased reliance on e-commerce. According to The Economist, “Alphabet, Google’s parent, saw sales rise by 13% in the first quarter compared with the year before, and profits reached $7bn.”

But will this digital trend last?

Although we expect an eventual return to in-person activities, COVID-19 is expected to have a long term impact on digital engagement. For example, “tech phobia” is commonly cited as a reason why some, particularly those over 65, may avoid new technology. However, with no alternatives, this age group are embracing new technology. In addition, younger family members are taking the time to help them get set-up and familiar with these new apps and services. What this means, going forward, is that mobile and digital offerings will have a much wider audience, beyond tech-savvy customers and digital native millennials.

MckInsey recently highlighted the post-pandemic trends beginning to emerge in China. For example, there has been a 55% increase in customers planning a permanent shift to online grocery shopping and an increase of 3-6% percentage points in overall e-commerce. Once people overcome the initial barriers, this data indicates that customers may permanently switch or significantly increase their use of digital services.

These behavioural changes are being supported by rapid transformation of digital infrastructure. On an individual company level, businesses are investing in digital strategy – for example, Hotel Chocolat recently announced a multi-million pound investment plan. There is larger scale investment from business – Alibaba Cloud will be putting $28 billion into developing their infrastructure over the next three years. Further government support will be available for UK businesses driving innovation and development.

Finally, an internet connection is now essential for information regarding the pandemic and accessing vital goods and services for those self-isolating. The Human Rights Watch have emphasised the importance of achieving equal access to digital services (and particularly a good quality internet connection, which thousands are currently struggling with). It is clear that we can expect further investment in digital infrastructure in our future.

Who will thrive in the post COVID-19 world?

Evidently, those with a strong existing digital service will be well placed to retain their position once the pandemic has subsided. COVID-19 has created a form of ‘digital Darwinism’ according to Mary Meeker, author of the annual Internet Trends Report, whereby businesses with a clear digital strategy will leave behind those without. In a recent report, McKinsey outlined several actions that should be taken to meet customer needs and prepare for the future. These actions include:

Focus on care and concern: prioritise employee needs and the wider community by reaching out and staying true to company values.

Meet your customer needs: adapt or create digital services and models that meet remote and social distancing requirements.

Reimagine the post-COVID-19 world: plan for economic cuts, changes to brick and mortar stores and increased uptake of digital channels.

Build agile capabilities for fluid times: utilise resources such as social media and ‘ear to the ground’ insights to respond to fast-moving customer signals.

It is these companies, who support customers through the crisis by providing efficient digital services, that will retain customer loyalty in the post COVID-19 world. Those who look further ahead, to develop exceptional experiences and utilise developments in infrastructure, will thrive in our digital future.

Times of crisis have often sparked innovation. The Second World War, for example, brought us the forerunner of modern-day computer, advances in radar, the basis of microwaves and mass production of penicillin. COVID-19 is having a similar effect on digital development. Ideas that might have seemed far-fetched (such as the rapid scale-up of online grocery shopping and other e-commerce) are promoted by a crisis-inspired culture of experimentation. Here are five examples of how technology is developing in response to extraordinary demands.

1. Data Analysis Tools

Finding data is easy, understanding it is hard. To this end, the pandemic has inspired several AI tools to help us make sense of the large amount of available information. Data analytics company, Arria NLG, are involved in two projects helping to transform data into an easy-to-understand narrative – the COVID-19 Live Report and the COVID-19 U.S. Tracking Report. AI analysis is also being used by a group of Northwestern University researchers to identify which research will return reliable, usable results that will help aid the search for COVID-19 treatments and vaccines.

2. Blockchain

The power of blockchain was recently demonstrated in a $12 million cross-continent commodity trade transaction of wheat. Usually, a transaction of this kind can take up to a month. However, using dltledgers’s blockchain platform, this was reduced to just five days. More and more businesses are expanding their reliance on blockchain – such as Nestle, who recently extended their use of the IMB Food Trust blockchain platform to their Swedish coffee range. The implications for keeping supply chains running seamlessly – something the coronavirus has highlighted as a serious challenge – are remarkable.

3. Natural Language Processing

With varied applications, such as helping customers navigate online platforms or as efficient medical tools (such as those used by Providence St. Joseph to offer coronavirus-related information), chatbots are proving useful during the pandemic. Chatbots are most commonly used to increase efficiency by answering simple queries, while forwarding more complex requests to a human operator. However, natural language processing, which refers to the deep learning that allows the chatbot to extract meaning from human conversation, improves with increased data. With some custom-made chatbots already proving useful in advanced interactions (such as Replika’s virtual friends, helping some people cope with the effects of social isolation), the uptake in chatbot use may enable the AI underpinning them to become vastly more sophisticated in the years to come.

4. Automation

At their recent virtual event, IBM announced a new range of AI-powered services, designed to support businesses in automating their digital infrastructure. According to Verdict, the new offering will “use automation to detect, diagnose and respond to IT anomalies and will integrate with other products such as those from Slack and Box.” Developments such as these will allow businesses to successfully adapt to a more digital future.

5. Robotics

Many companies have reported that they are looking to increase use of robotics for food service, warehouses and cleaning operations. Blue Ocean Robotics have responded to this increased demand by creating a cleaning robot, able to destroy viruses, bacteria and other harmful microorganisms with concentrated UV-C ultraviolet light. It can sanitise environments such as hospitals, offices, shops and schools without the need for chemicals, meaning that people can be present during the cleaning. Production was quickly accelerated due to coronavirus-related demand, and it now takes less than one day to create a robot. The general public have often been uncomfortable with the idea of robots (and the issue of replacing human jobs with robot labour remains). However, with social distancing likely to be in place throughout 2021, robot labour may become more acceptable, stimulating demand for and development of robotic technology.

This article has showcased a small handful of the exciting innovation occurring during the pandemic. Given that there is expected to be a permanent shift towards use of digital services and practices such as remote working, these developments could have far-reaching implications for the technology industry for years to come.

Our Technology Market Insights Report & Salary Guide 2020 provides the latest insights on the market collated by our Technology Recruitment Teams, and from data collected from surveying our clients and candidates.