Inline Insights

COVID-19 has shown us both how reliant we are on gig workers, and how vulnerable such workers are in major crises. After the crisis is over, policymakers will have to decide whether the gig economy and its ecosystem is something to be championed, or something to be managed via further regulations.

The tech sector, as all other sectors of the economy, has been heavily impacted by the COVID-19 crisis, but not necessarily in a negative way. The pandemic could in fact represent an opportunity for five key tech sub-sectors to innovate their business models and show policy makers the potential of new technologies for good during (and beyond) global crises.

The EU has set great ambitions around artificial intelligence, seeking to accelerate innovation and foster a much more competitive environment. But as the example of the copyright directive shows, much can go wrong for Europe’s AI businesses if they do not pay attention to what will be proposed.

The ongoing COVID-19 outbreak is forcing companies to turn to technology solutions, given that a significant part of their workforce has switched to working remotely. This abrupt shift in workforce and workplace organisation makes both the benefits and challenges of “people analytics” evermore relevant to business leaders and policymakers alike. 

California’s recent regulation to address perceived imbalances in the gig economy (known as AB5) has set tongues wagging about the future of companies like Uber and Lyft. Given Europe’s reputation for being tough on tech giants, is a similar intervention on this side of the Atlantic now inevitable?

The spread of tiny chips into more and more everyday items promises a cumulative leap in convenience for consumers and productivity for businesses. Yet as ever more consumer devices become hooked up to the internet and the line between hardware and software blurs, the question of consumer protection and the need for new consumer regulations will receive greater attention.

The grand-scale struggles of power between international superpowers might appear a far cry from the everyday business of a technology company. However, in reality, geopolitics has very tangible implications for corporates within the tech sector, and the tug of war taking place over the direction of industry standards is a prime example.

As Europe begins the year in a state of relative stability with the EU Commission firmly in place as well as new governments in the UK and Spain, all eyes are on how policymakers will now respond to popular demand for changes to our liberal order. The tech sector could be in for a rough ride.

Once the political decision about Brexit is settled, the focus will move swiftly to the precise nature of the new relationship between the UK and the EU. The question of regulatory alignment or divergence will then take centre stage - with an uncertain outcome and potentially far-reaching implications for the tech sector.