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Innovation and Technology

Tariff Pause Hits Tech Budget

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Tariff Pause Hits Tech Budget

Tariff hikes are no longer just background noise. They’re putting real pressure on CIOs’ technology budgets. Despite Wednesday’s news that Trump issued a 90-day pause on reciprocal tariffs for most countries, the high tariffs Trump announced last week are set to resume when the pause expires. Universal 10% tariffs are still in effect, and Trump increased Chinese tariffs to 125%.

Understanding the Immediate Impact

While no one knows how long the tariffs will last — or what they will look like after the 90-day pause — their impact is immediate. CIOs can’t afford to wait. They need short-term strategies to reduce exposure, manage costs and align with business priorities.

Strategies for CIOs to Stay Ahead

Here are three ways CIOs can stay ahead amid the tariff turbulence.

Hardware Refresh Delay

Delaying hardware refresh cycles is a fast way to ease short-term budget pressure. Stretching the life of existing equipment can help soften the financial blow. But if you go down this path, plan for it. Technology departments should start storing critical spare parts now for older systems. If something breaks later, you’ll avoid delays and inflated replacement costs. This is a tough decision, especially when delaying upgrades, because it might mean higher maintenance costs and limited capabilities in the future. CIOs must weigh savings against potential performance risks.

Expect Cost Increases And Plan for Trade-offs

Rising hardware and infrastructure costs will force trade-offs within existing projects’ IT budgets and scope. If you don’t adjust, your IT spending will quickly increase. Review active projects while staying on course. Essential projects tied to compliance, regulatory mandates, risk mitigation or supply chain stability should stay on track. Delaying those initiatives could backfire and increase long-term exposure. Project evaluation shouldn’t be a one-off. CIOs can take advantage of the situation by using the tariff hike to make project reviews part of a regular cadence with senior leadership. Business priorities may shift as tariffs evolve, and your IT roadmap needs to stay in sync. If tariffs threaten to delay key initiatives, map the downstream effects immediately. A delay in one system implementation could ripple through dependent projects and compound risk. Build tariff scenarios into your total-cost-of-ownership models so leadership understands the full financial impact.

Rethink Your Partners and Their Strategy

CIOs can reduce the risk by reassessing where and how their technology partners operate. Start with logistics: Can you change shipping models or deployment schedules to minimize costs? Then, look at geographic exposure. Are you relying too heavily on hardware from one region? Diversifying your supplier footprint can help cushion the blow from regional tariffs. CIOs must now ask their partners the hard questions: What’s their strategy for dealing with tariffs? What parts of their supply chain are exposed? CIOs will need answers before the costs hit their profits and losses. Renegotiating contracts can help hedge against volatility. CIOs may want to negotiate and add “not-to-exceed” clauses to keep their budgets stable regardless of tariff movement. If you’re revisiting terms, this is also a chance to reset some vendor agreements. Look for ways to improve flexibility and lock in value.

Conclusion

Gartner forecasts a 9.8% increase in global IT spending for 2025, hitting $5.61 trillion. But that growth isn’t driven by tariffs. Tariffs may be temporary. However, how CIOs respond now in the short term could shape their tech strategy for years.

FAQs

  • Q: What are the immediate effects of tariff hikes on CIOs’ technology budgets?
    A: Tariff hikes immediately increase pressure on CIOs’ technology budgets, necessitating short-term strategies to manage costs and reduce exposure.
  • Q: How can delaying hardware refresh cycles help?
    A: Delaying hardware refresh cycles can help ease short-term budget pressure by stretching the life of existing equipment, but it requires planning, including storing critical spare parts for older systems.
  • Q: Why is it important to review active projects and prioritize them?
    A: Reviewing active projects and prioritizing them based on compliance, regulatory mandates, risk mitigation, or supply chain stability can help CIOs make informed decisions about which projects to continue or delay, thereby managing costs and minimizing long-term exposure.
  • Q: How can reassessing technology partners and their strategies help mitigate tariff risks?
    A: Reassessing technology partners can help CIOs reduce risk by evaluating logistics, geographic exposure, and diversifying supplier footprints, as well as by negotiating contracts that include “not-to-exceed” clauses to stabilize budgets.

Innovation and Technology

The Impact of Edge Computing on the Workplace: What It Means for Your Business

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The Impact of Edge Computing on the Workplace: What It Means for Your Business

Emerging tech trends in workplaces are revolutionizing the way we work, and edge computing is at the forefront of this transformation. With the increasing demand for faster data processing and analysis, edge computing is poised to change the face of business operations. In this article, we’ll delve into the world of edge computing and explore its impact on the workplace.

What is Edge Computing?

Edge computing refers to the processing and analysis of data at the edge of a network, closer to the source of the data. This approach reduces latency, improves real-time processing, and enables faster decision-making. By minimizing the need for data to travel to a centralized cloud or data center, edge computing enhances the overall efficiency of business operations.

Key Characteristics of Edge Computing

Edge computing has several key characteristics that set it apart from traditional computing methods. These include reduced latency, improved real-time processing, and enhanced security. With edge computing, data is processed and analyzed in real-time, allowing for faster decision-making and improved business outcomes.

Benefits of Edge Computing in the Workplace

The benefits of edge computing in the workplace are numerous. Some of the most significant advantages include improved efficiency, enhanced security, and increased productivity. By processing data in real-time, edge computing enables businesses to respond quickly to changing market conditions and make data-driven decisions.

Improved Efficiency

Edge computing improves efficiency by reducing the need for data to travel to a centralized cloud or data center. This reduces latency and enables faster processing, allowing businesses to respond quickly to changing market conditions. With edge computing, businesses can automate tasks, streamline processes, and improve overall productivity.

Enhanced Security

Edge computing also enhances security by reducing the amount of data that needs to be transmitted to a centralized cloud or data center. This reduces the risk of data breaches and cyber attacks, protecting sensitive business information. With edge computing, businesses can implement robust security measures, such as encryption and access controls, to protect their data.

Applications of Edge Computing in the Workplace

Edge computing has a wide range of applications in the workplace, from industrial automation to smart buildings. Some of the most significant applications include real-time analytics, artificial intelligence, and the Internet of Things (IoT).

Real-Time Analytics

Edge computing enables real-time analytics, allowing businesses to analyze data as it is generated. This enables businesses to respond quickly to changing market conditions, identify trends, and make data-driven decisions. With edge computing, businesses can analyze data from various sources, including sensors, machines, and devices.

Artificial Intelligence

Edge computing also enables the use of artificial intelligence (AI) in the workplace. By processing data in real-time, edge computing enables businesses to use AI algorithms to analyze data, identify patterns, and make predictions. With edge computing, businesses can implement AI-powered chatbots, virtual assistants, and other AI-powered tools.

Challenges and Limitations of Edge Computing

While edge computing offers numerous benefits, it also presents several challenges and limitations. Some of the most significant challenges include data management, security, and scalability.

Data Management

Edge computing requires effective data management, including data storage, processing, and analysis. Businesses must implement robust data management strategies to ensure that data is accurate, complete, and secure. With edge computing, businesses must also ensure that data is properly backed up and recovered in case of a disaster.

Security

Edge computing also presents security challenges, including the risk of data breaches and cyber attacks. Businesses must implement robust security measures, such as encryption and access controls, to protect sensitive business information. With edge computing, businesses must also ensure that devices and equipment are properly secured and monitored.

Best Practices for Implementing Edge Computing

To implement edge computing effectively, businesses must follow best practices, including assessing business needs, developing a strategic plan, and implementing robust security measures.

Assessing Business Needs

Businesses must assess their business needs and identify areas where edge computing can add value. This includes analyzing business processes, identifying bottlenecks, and determining the types of data that need to be processed and analyzed.

Developing a Strategic Plan

Businesses must develop a strategic plan for implementing edge computing, including identifying the types of devices and equipment needed, developing a data management strategy, and implementing robust security measures.

Conclusion

In conclusion, edge computing is revolutionizing the workplace by enabling faster data processing and analysis. With its numerous benefits, including improved efficiency, enhanced security, and increased productivity, edge computing is poised to change the face of business operations. By following best practices and addressing challenges and limitations, businesses can implement edge computing effectively and achieve significant benefits.

Frequently Asked Questions (FAQs)

What is edge computing?

Edge computing refers to the processing and analysis of data at the edge of a network, closer to the source of the data.

What are the benefits of edge computing?

The benefits of edge computing include improved efficiency, enhanced security, and increased productivity.

What are the applications of edge computing in the workplace?

The applications of edge computing in the workplace include real-time analytics, artificial intelligence, and the Internet of Things (IoT).

What are the challenges and limitations of edge computing?

The challenges and limitations of edge computing include data management, security, and scalability.

How can businesses implement edge computing effectively?

Businesses can implement edge computing effectively by assessing business needs, developing a strategic plan, and implementing robust security measures.

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Innovation and Technology

Instilling Clear-Headed Leadership With AI

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Instilling Clear-Headed Leadership With AI

Introduction to AI Leadership

Don’t fret, and don’t fight, the artificial intelligence wave. Instead, be an educator. Get out ahead of it and make it work in a positive way for everyone around you. The good news is you don’t have to be a techie to take a leadership role with AI.

The Need for AI Advocates

That’s the word from Ab DeWeese, a venture capitalist and consultant, who explains, in his latest book, Essential AI: Your All-in-One Quickstart to Using AI in Business and the Workplace, that the rise of AI is demanding clear-headed leadership. “Be the change – become an AI advocate," he urges. As AI has massive potential, "the more we each take responsibility for understanding it and sharing our knowledge, the better off we will be,” he says. AI advocates can not only make their jobs more future-ready, but also add value to the worlds around them.

The Role of an AI Advocate

“Whether you’re just AI-curious or you’re an AI enthusiast and early adopter, you have a unique opportunity to act as an educator, champion, and agent of change, helping others see the immense value and potential of AI as you leverage them yourself,” DeWeese observes. The role also provides "a chance to share the vital nature of AI guardrails and how to avoid AI risks.” “In our AI future, power, career success, and compensation is going to concentrate among those with AI skills and knowledge,” he adds. By bringing AI to the workplace in a fair and effective way, one can become an agent of positive change, “the go-to guru showing others how to work less to produce more, freeing up their creativity and productivity.”

Designing an AI Advocacy Role

DeWeese makes several recommendations for designing an AI advocacy role:

  • Start with education. “Provide clear, straightforward information about what AI is, how it works, and how it can enhance productivity and efficiency. Use simple language and relatable examples to demystify AI. Get them working with AI yourself and invite them to engage them immediately with your help. Or sit next to them and show them what it looks like and how to get started. As you’ve seen yourself, once you become familiar with it, it becomes easier immediately.”
  • Demonstrate the tangible benefits of AI. "Show, don’t just tell. Use real-life examples and case studies to illustrate how AI solves specific problems or simplifies tasks. The more concrete and relevant your examples, the more compelling your case will be."
  • Share examples of where AI has been successful. "Stories are powerful—they make the abstract concrete and the unfamiliar familiar. Show co-workers “what a productive, problem-solving AI session looks like. These examples can motivate and reassure those who are hesitant about change.”
  • Choose a complex task co-workers may have and help work it with them. For example, a customer service representative may have an idea for a process improvement they’d like to demonstrate to their manager, DeWeese advises. “Show them how they can use AI to articulate a concept they may still be struggling to get clear. This process isn‘t just for people with highly developed skills and jobs. It’s incredibly helpful for people at any level with ideas they want to develop.”
  • Help co-workers develop prompt development skills. "Work the task with them by helping craft a prompt for AI that might look like this: ‘I am proposing a new process improvement to my boss. Please help me develop this idea into a clearly articulated, benefit-and result-oriented proposal.’ Work with AI iteratively to develop this idea until it’s in a compelling, coherent form."
  • Address concerns head-on. "Don’t shy away from tough conversations. Acknowledge fears about job security and explain how AI can augment, rather than replace, human capabilities. Point out the benefits you’ve seen and learned about, like saving time and producing interesting new results. Explain how a highly developed AI understanding will set them apart in our AI future. Explain how humans are critical, especially those who can manage AI technology."
  • Encourage hands-on experience. "The most effective way to convert skeptics is to let them experience AI firsthand," DeWeese states. "Invite colleagues to collaborate with you and see the benefits for themselves. This practical, hands-on experience can demystify AI and demonstrate its value in a way that words alone cannot."
  • Have fun with it. "If you don’t have a specific work task to work on together, use AI to research something fun, like activities you can do together, an upcoming vacation, or writing a song."

Conclusion

Ultimately, humans matter more than machines ever will. The key is to impress this upon co-workers – and be the change.

FAQs

  • Q: What is an AI advocate?
    A: An AI advocate is someone who educates and champions the use of artificial intelligence in the workplace, helping others to understand its potential and benefits.
  • Q: Why is it important to become an AI advocate?
    A: Becoming an AI advocate can help individuals make their jobs more future-ready, add value to their organization, and become a leader in their field.
  • Q: What skills do I need to become an AI advocate?
    A: You don’t need to be a techie to become an AI advocate, but you do need to be willing to learn and share your knowledge with others.
  • Q: How can I get started as an AI advocate?
    A: Start by educating yourself about AI, then share your knowledge with others, and encourage them to get hands-on experience with AI.
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Innovation and Technology

5 Game-Changing Quantum Computing Use Cases

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5 Game-Changing Quantum Computing Use Cases

Quantum computing is no longer a futuristic dream; it’s being used right now to optimize finance, discover new drugs, secure networks, and even build better batteries. We’re going to hear a lot about quantum computing in the coming years. Once real-world mainstream use cases start to appear, it will become one of the hottest topics in tech, up there with AI.

The Current State of Quantum Computing

Things are moving steadily towards that point. The investment pouring into quantum service providers and startups shows that industry understands its significance. And a growing number of real-world use cases are emerging to demonstrate its value outside of the laboratory. Quantum computers harness the properties of quantum mechanics to perform some tasks millions of times more quickly than classical computers. This will make them hugely transformative in fields including finance, cybersecurity, medicine and material sciences.

Real-World Applications of Quantum Computing

So, let’s take a look at what quantum computers are actually being used for today to understand how they are already pushing the boundaries of what’s possible.

Optimizing Transactions In Financial Services

A collaboration between IBM, Quantinuum, Banca D’Italia and several universities has produced a quantum computer system capable of tackling highly complex optimization tasks. It’s thought that this technology could save financial institutions millions of dollars by reducing delays in settling payments on the TARGET2-Securities platform used to manage stock trades. Quantum computers are great for solving these kinds of mathematical problems, involving finding the best combinations of numerous complex variables. In this case, the optimization involves finding the most efficient methods of processing transactions as quickly as possible. The World Economic Forum believes that applying quantum computer technology to financial services optimization problems in this way will unlock $2 trillion in economic value by 2035.

Drug Discovery

Quantum computers are especially good at simulating the real world because the real world follows the rules of quantum physics — something traditional computers, which rely on simple binary logic, struggle to replicate accurately. In fact, Nobel Prize-winning physicist Richard Feynman once said, “Nature isn’t classical, dammit! And if you want to make a simulation of nature, you’d better make it quantum mechanical.” Quantum computing pioneers Qubit Pharmaceuticals leverage this ability of quantum computing to more accurately model and predict the interactions between medicinal particles and disease targets in the human body. According to their founder, 70% of these interactions are too complex to model on classical computers. This means that quantum computers are far more likely to identify potential candidates for new drugs and treatments. Google and IBM are also building quantum computing technology optimized for this task.

Quantum-Secured Networks

Network security protocols developed using quantum techniques have been rolled out in high-stakes environments, including telecommunications and government communications infrastructure. Samsung has built quantum key distribution (QKD) into its Galaxy Quantum range of smartphones, and the technology has been used by Hyundai and Toshiba to create quantum-secured networks. China Telecom is planning to launch the first quantum-secured global telecommunications network by 2027. QKD works because of the quirky quantum principle that observing a particle changes its state, meaning any attempt at snooping can instantly be detected and shut down.

Better Batteries

Batteries are usually the most expensive component of electric vehicles. The need to generate a large amount of energy from a device of the minimum size, weight and manufacturing cost creates a tough engineering challenge. A partnership between Hyundai and IonQ, however, has resulted in technology that can better model the properties of lithium compounds used in battery cathodes. This enables researchers to quickly test candidate materials via simulation and vastly speed up the discovery process. The result is batteries that hold power for longer, charge quicker and can be made from a wider range of materials.

Truly Random Numbers

Banking giant JPMorgan Chase has been a leading investor in quantum computing research for some time, and it could now be starting to pay off. The bank’s research division, working alongside academics from the University of Texas and other leading institutions, has developed methods of generating truly unpredictable numbers. Classical computers, by comparison, use deterministic methods of generating “random” numbers, so they aren’t truly random and, in theory, can always be cracked or traced back to a seed by sufficiently powerful computers. It’s believed that random numbers generated in this way will form the basis of the more secure cryptography techniques of the future.

Towards Commercial Quantum Computing

Everything covered here is happening in the real world now, even if it is all being built on bespoke architecture by companies with very deep pockets. However, Google’s head of Quantum, Hartmut Neven, believes it will be as little as five years before commercial off-the-shelf quantum applications are available. This will be the real game-changer as the power of quantum becomes accessible to a far wider range of businesses and organizational users, further accelerating innovation. While quantum computers won’t replace classical computers for every task, the tasks they do excel at are high-value and often business-critical. Everyone involved in fields that will be directly impacted should prepare immediately for dramatic transformations that will occur when this technological revolution fully begins.

Conclusion

Quantum computing is no longer a futuristic dream, but a reality that is being used to optimize finance, discover new drugs, secure networks, and build better batteries. With its ability to perform tasks millions of times more quickly than classical computers, quantum computing will have a significant impact on various industries. As commercial off-the-shelf quantum applications become available, the power of quantum will become accessible to a wider range of businesses and organizational users, leading to further innovation and transformation.

FAQs

  • What is quantum computing?
    Quantum computing is a type of computing that uses the principles of quantum mechanics to perform tasks that are beyond the capabilities of classical computers.
  • What are the current applications of quantum computing?
    Quantum computing is currently being used in finance, drug discovery, network security, and battery development, among other fields.
  • What is the potential impact of quantum computing on various industries?
    Quantum computing has the potential to unlock $2 trillion in economic value by 2035, and will have a significant impact on various industries, including finance, healthcare, and technology.
  • When will commercial off-the-shelf quantum applications be available?
    Google’s head of Quantum, Hartmut Neven, believes that commercial off-the-shelf quantum applications will be available in as little as five years.
  • How will quantum computing change the way we work?
    Quantum computing will enable businesses and organizations to perform tasks that are currently impossible or impractical with classical computers, leading to increased efficiency, innovation, and transformation.
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