The 2030 Digital Economy

A transformative shift in commerce and communication will redefine global economic landscapes over the next decade

17 min readNov 1, 2024

Jack Statza is a Partner with Alumni Ventures’ Blockchain & Fintech Fund. Jack brings deep-tech venture investing expertise across sectors and stages to his work at Alumni Ventures. He was previously an early-stage investor at Allstate Strategic Ventures, the venture capital arm of Allstate Insurance Company, primarily focusing on AI/ML, Blockchain, and Enterprise SaaS.

Adam Mastrelli is a Venture Scout for Alumni Ventures. As a Partner with Woodstock Fund, he is focused on Infrastructure, DeFi, and Gaming applications. Adam also sits on the advisory board for Outerlands Capital, a systematic digital asset manager. Previously, Adam spent 10 years with IBM, launching digital asset initiatives and cultivating relationships across public-private institutions, state and local governments, and emerging markets.

The Digital Economy marks a transformative shift in how humans have conducted commerce and communication over thousands of years. Essentially, it refers to the economic activities and the direct connections between people and technology across digital platforms, bypassing traditional intermediaries.

Exploring the depths of this shift reveals a myriad of technologies at play, including the internet, mobile technology, big data, the Internet of Things (IoT), software, blockchain, artificial intelligence (AI), augmented and virtual reality (AR/VR), fintech, e-commerce, and semiconductors, among others. These technologies represent a diverse and rapidly evolving toolkit that underpins the digital economy.

In this blog, we will hone in on nine pivotal Digital Economy trends and technologies poised to reshape the economic landscape by 2030. Our goal will be to clarify the profound implications and opportunities these technological advancements hold for the future.

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1. Generative AI for Innovation

2030 Is Only a Few Years Away

Generative AI will be increasingly used to co-develop digital products and services, enabling companies to innovate faster and gain a competitive edge. AI is projected to become a $207 billion market by 2030 as organizations aim to optimize operations and drive efficiency.

Across various sectors today, companies are already harnessing generative AI to innovate and maintain a competitive edge by co-developing digital products and services. For instance, Autodesk’s generative design software transforms product design by enabling engineers to input goals and constraints, with AI generating numerous design alternatives, speeding up the design process while fostering innovation. Similarly, OpenAI’s GPT-3 powers content creation from articles to marketing copy, significantly cutting development time and allowing for scalability. In gaming, firms like Electronic Arts and Ubisoft use AI to craft immersive experiences with unique environments and dialogues, enhancing gameplay.

In the fashion industry, Stitch Fix employs AI to customize offerings based on customer data, optimizing inventory and improving satisfaction. The automotive sector sees companies like Ford using generative AI for component design, enhancing efficiency without sacrificing quality. In healthcare, AI advancements by DeepMind in protein folding prediction with AlphaFold are fast-tracking drug discovery, potentially lowering development costs. Financial services, including JP Morgan Chase and Goldman Sachs, leverage AI for market analysis and automated trading, boosting efficiency and profitability.

This widespread adoption of generative AI is revolutionizing how industries operate, streamlining processes, and leading to groundbreaking advancements already today. One could imagine what revolutionary developments will occur by 2030.

Relevant AV Portcos:

Cohere is making natural language AI accessible to all developers and businesses, even those without massive compute resources or machine learning knowledge.
Dataminr’s AI platform detects the earliest signals of high-impact events and emerging risks from hundreds of thousands of public data sources and offers real-time alerts for clients.
Precision Neuroscience’s goal is to provide breakthrough treatments through Brain-Computer Interfaces (BCI) for the one billion patients worldwide suffering from neurological illnesses.
Unstructured converts data from multiple sources into a large, secure, central repository that is “AI ready.”
Rewind is a personalized AI powered by everything you’ve seen, said, or heard.

2. AI Democratization and Ownership

Putting AI Power in the Hands of the People

There will be a rise in user-friendly tools and platforms that democratize AI development, allowing non-technical users to more easily create AI solutions. This will foster broader collaboration and faster time-to-market for AI applications.

For instance, have you seen Sora? Insane right? Others agree and not just via narratives and platitudes, but via actions. For example, Tyler Perry put an $800 million studio expansion on hold due to Open AI’s Sora. This will happen more and more ,and Hollywood is in big trouble.

Here are the top Sora videos for you to watch. And remember, all of these are AI generated. With another looming Hollywood strike, the incentive to disrupt the entertainment industry is higher and moving faster than ever.

In addition, one of the most interesting court cases of this this year comes from the NY Times suing Open AI and Microsoft. Essentially, stating that if OPEN AI is trained on the NY Times proprietary data and writing, they should be paid for the use of their IP. This is going to get very, very interesting. Way too much to cover here, but absolutely worth a rabbit hole of your time. Ben Thompson writes lucidly about this in Stratechery, The NY Times AI Opportunity.

Relevant AV Portcos:

Replikant (fka DNABlock) is a 3D animation platform that enables users to create 3D avatars and cinema-quality animated content, plus mint the NFT.
Anything World is an AI-enabled middleware platform that helps developers build interactive 3D experiences for games, images, and video production — at lower costs and speeds 40% faster than alternatives.
Massless is a virtual reality-enabled development platform designed for creative professionals.
Patlytics offers a comprehensive, AI-powered patent platform, streamlining patent discovery, analytics, comparison, and workflow.

3. Global Extended Reality

AR/VR Apple v Meta and More

The global extended reality (XR) market — encompassing virtual reality (VR), augmented reality (AR), and mixed reality (MR) — is projected to reach $1.35 billion by 2030, transforming how businesses operate and interact. [9]

We’ll also include e-commerce in this category, including personalized shopping experiences, social commerce, and the integration of augmented reality (AR) and virtual reality (VR) into the online shopping experience. The battle between AR and VR will rage between Apple and Meta. There’s no clear winner and, on some level, one could argue that these headsets do very different things. Apple embraces AR, while Meta embraces VR.

It’s heating up. Look no further than Zuck doing a seemingly off-the-cuff teardown of the Apple Vision Pro. You really get the feeling that he’s just playing around with the hardware and sharing what he likes and doesn’t like. In reality, there are simply certain things that both of these devices will be used for. And they may not necessarily overlap. It will be up to the individual.

Relevant AV Portcos:

Light Field’s high-resolution holographic display platform enables digital objects to accurately move, refract, and reflect in the physical world without the use of headgear.
StatusPRO creates sports video games featuring 3D player simulations experienced through a VR headset.
Looking Glass Factory has developed holographic light field displays that enable enterprises and individuals to create and showcase 3D designs.
Anzu is an advertising platform and analytics tool for the gaming industry.
Jadu is an AR game studio known for creating a cutting-edge multiplayer AR fighting games for mobile devices, emphasizing rivalries and competitions.
Playtron is developing a next-generation mobile operating system to play AAA games with Web3 features and the same fidelity that you’d expect from your TV or computer.

4. The Return of Crypto

Since Jan 11, 2024, we’ve seen record inflows into Bitcoin ETFs that, for the most part, are putting the doldrums, near death moments of FTX , and the rest of the disruptions in the 2022 crypto ‘altverse’ in the rear-view mirror. Valuations are up, new use cases are emerging (DEPIN, RWAs), and crypto ecosystems are definitely sensing a return to a bull market.

We have to look at crypto and the last 15 years as a nascent asset class and see that we’re still in the early days of understanding what having a sovereign currency on the internet means for society. Chris Dixon’s book Read, Write, Own is arriving at just the right time for another wave of crypto curious folks to understand a bit more deeply the importance of ownership and truth on the internet. And as we continue to explore not only the currency and value aspects of Bitcoin (for governments and citizens alike), but also the emergence of AI, we wonder if there’s a need for a critical layer of infrastructure that determines what’s real or not that lives on a decentralized ledger for all to see. We’re betting there is.

Relevant AV Portcos:

Mysten Lab provides developers with a scalable, secure, low-cost, and high-performance Layer 1 blockchain — the foundational “operating system” for Web3.
Subspace Labs is integrating GPT-based AI into its network to simplify user interactions with Web3 technologies, focusing on AI-driven identity verification and digital payments. They aim to democratize access to technology with a human-centric approach, developing Semi-Autonomous Personal Intelligent Assistants (Sapials) and an autonomous identity framework.
Babylon solves security issues for Proof-of-Stake (PoS) blockchain-based algorithms that secure many cryptocurrencies.
Quai Network is building a blockchain that combines the best features of foundational blockchain architecture (Layer 1) such as Ethereum and overlay (L2) networks like Polygon to improve performance and scalability while maintaining security and decentralization.
Aurora is a next-generation Ethereum-compatible blockchain and ecosystem that runs on the NEAR Protocol, and powers the innovations behind Aurora Cloud — enabling Web2 businesses to capture the value of Web3.

5. 5G and the GPU Powers That Be

Watch for the rollout and adoption of 5G technology, enabling faster internet speeds, lower latency, and greater connectivity, with implications for sectors such as IoT, autonomous vehicles, and augmented reality. And while 5G is growing, it’s slower due to the complexity of the rollout. It requires more investment, and the foundation is being laid out.

Right now, the data to look out for in 2024 will be NB-IoT devices. You’ll know this as your connected fitness app trackers or improvements to the supply chain with edge devices being tracked in real time. We’re already excited by the prospect of this as now we’ll know our bags are when we board a flight. Huge upgrade! GPS trackers, smart utility meters, agricultural sensors, and remote health monitors are among the technologies that benefit from the increased deployment of 5G networks.

But let’s not forget the computing and storage infrastructure side needed to support a more robust telecom network. As more devices leverage our 5G networks, larger data centers will be built that require stronger chipsets (such as GPUs) to process the data to train AI. One thing we can be sure of is that as AI emerges as a necessary component, the need for GPUs will only increase. Don’t take it from me, take it from Elon Musk, who said “The GPUs at this point are harder to get than drugs.”

Relevant AV Portcos:

Lambda is a hybrid AI cloud infrastructure provider that offers on-site and cloud-based GPU computing infrastructure, along with a software stack for AI engineers and deep learning operations.
Enfabrica designs networking chips, systems, and software for AI computing workloads.
Nova Labs’ disruptive approach combines wireless technology with blockchain. The result: A connectivity system that’s inexpensive to build, highly accessible, and quickly scalable.
Epicore Biosystems is a digital health company developing advanced sweat-sensing wearables that provide real-time, personalized health insights for hydration, stress, and wellness.
Movandi has developed an innovative technology for 5G mm wave deployments that removes many of the barriers to the adoption of 5G.
Finwave develops high-performance Gallium Nitride (GaN) power electronic chips to solve energy-efficiency challenges and enable the potential of 5G.
Edgescale AI is addressing the need for scalable AI implementation in operational systems, particularly in sectors like manufacturing, with its cloud-rooted, AI-driven 5G network.
Groq’s single core chip, with its tensor streaming processor architecture, seeks to unleash the potential of AI by driving the cost of compute to zero.

6. The Metaverse Is Already Here and We’re Playing.

Hi Roblox!

For those of you with children and if you’ve been wondering where your credit card is? Your kids have it, and they’re buying virtual goods on Roblox. There are of course bulls and bears on both sides of this argument. Bears will state the fact that Roblox isn’t profitable, has over $1B in long-term debt, and needs to reduce its net losses and leverage. Bulls love their first-mover advantage, 70+M DAUs, and the fact that it does not face any meaningful competitors.

With this aside and knowing this isn’t investment advice, we’re most interested in the fact that the future metaverse we’re anticipating is already here — with a robust economic system (Roblox) and no signs of slowing down. Take the time to watch some gameplay over the weekend. And with increasing use of AI tools, whether Roblox or future environments like this, we expect the cost to produce games will only decrease. We’re in for a bright future with games, and over time, true ownership of digital goods (NFTs).

Relevant AV Portcos:

Hadean Supercomputing provides the essential computing infrastructure needed to power the scalable building and staging of Metaverse / Web3 applications.
PIXELYNX builds technology designed to transform the way music is consumed in the metaverse, while also building a network of complementary businesses.
Stadium Live Studios is a consumer social company building an authentic, unique metaverse for the next generation of sports fans to create, connect, and play with others around the world.
Upland is a virtual property strategy game that’s mapped to the real world, where users have fun while earning real world value.
Barnyard Games is pioneering the development and publishing of innovative, social, and high-quality game experiences in the user-generated content market, starting with the Unreal Editor in Fortnite platform, co-founded by veterans from the Borderlands and DC Universe Online franchises.
GigLabs provides two tools — a CMS platform and a 3D environment to experience digital art and collectibles — to help brands build successful NFT experiences.

7. The Modular Enterprise

Everything as a Service (XaaS) at Your Fingertips

Businesses are increasingly adopting a composable enterprise strategy, utilizing modular applications and services to craft flexible and adaptable digital capabilities. This approach allows for swift responses to changing market demands. In addition, the XaaS (Everything-as-a-Service) model is gaining momentum, offering cloud-based subscriptions that enable businesses to easily access digital capabilities on-demand and scale operations efficiently.

The landscape of software development is also experiencing significant changes, with a vast array of tools now available to developers. This evolution marks a departure from past practices, such as those we witnessed at IBM in the last decade, where the costs associated with approved versions of ‘open source’ software — not to mention proprietary software licenses — were exceedingly high. Today, enterprises and developers are leveraging AI and enhanced developer tools, propelling a shift towards a DIY strategy in corporate software development. This shift is likely to challenge the traditional SaaS (Software-as-a-Service) business models, as companies become more self-reliant and agile in their software development efforts.

Relevant AV Portcos:

Ethena is a compliance training software platform aiming to reinvent how companies manage required employee training.
Replicant uses AI to help large, B2C enterprises automate their most common customer service calls while empowering agents to focus on more complex and nuanced customer challenges.
Integrate is a marketing automations and tech company, as well as a hub for managing and measuring demand-generation programs.

8. Cybersecurity

Who You Gonna Trust?

Cybersecurity and establishing trust in digital ecosystems will be crucial with increasing digitalization. The “trust economy” trend focuses on implementing robust security measures, data privacy, and promoting transparency and responsibility.

Cybercrime is so massive and misunderstood because of its technical complexity. Often, we mere mortals (non devs) throw our hands in the air and place cybercrime in a bucket of “ah well, there’s only so much data we can protect.” And while there’s some truth to not being able to protect all data at all times, the importance of protecting data is more important than ever.

Cybercrime also has a massive financial impact, with the largest threats (ransomware, et al.) driving losses of 100M+ and the average cost of a data breach increasing by 15% over the last three years. And the bad guys are getting smarter and faster, which means larger companies are snatching up competitors and going on an M&A spree. Be on the lookout for much more activity in this space.

Relevant AV Portcos:

Logz.io is a cloud-native observability platform providing unified monitoring, troubleshooting, and security for modern DevOps teams and engineers.
TripleBlind provides digital privacy as a service, driving data collaboration by automatically de-identifying data.
HYPR is a password-less, dual-authentication cybersecurity solution for enterprise employees and customers.

9. Circular Platforms

Reduce, Reuse, Recycle Was so Yesterday

Digital platforms will play a role in supporting the circular economy by enabling repair, redesign, recycling, and sharing of assets, contributing to sustainability goals and reducing waste.

Several companies are at the forefront of integrating digital platforms to champion the circular economy, thereby enhancing sustainability and minimizing waste. Patagonia, through its Worn Wear program, promotes the repair, reuse, and recycling of its outdoor clothing, emphasizing longevity and reduced environmental impact. IKEA encourages customers to participate in its buy-back and resell program, aiming to extend the life of furniture items and lessen waste. Fairphone stands out in the electronics industry by offering smartphones designed for durability, repairability, and upgradability, tackling the issue of electronic waste directly.

Moreover, by streamlining transactions and enhancing connectivity, digital platforms make it easier for consumers and businesses to engage in circular economy activities, such as sharing, leasing, reusing, and recycling goods and services. For instance, digital payment solutions of the Digital Economy can simplify the process of buying and selling used goods, making it more attractive for consumers to participate in secondhand markets. This not only extends the lifecycle of products but also reduces the need for new resources.

Relevant AV Portcos:

Mycocycle is training mushrooms to eat trash, sustainably diverting industrial waste such as asphalt shingles and rubber from landfills and turning it into usable, recycled products.
Arrive Platform enables brands and retailers to manage their non-salable returns by identifying, refurbishing, grading, and managing order fulfillment.
Cambium Carbon’s circular economy model works with cities and other partners to save fallen city trees from landfills and decomposition. It reroutes this wood to local businesses (e.g., mills, furniture manufacturers, etc.) for reuse and subsequently channels revenues into planting projects.
Swaplanet offers a “recommerce” marketplace that allows parents to resell gently used children’s clothing, earning them money while giving usable items an extended life and buyers a bargain.
Good Goods is a marketplace solution that brings together producers and retailers to accelerate the adoption of reusable consumer products.
For Days is a recycling and rewards platform on a mission to end clothing waste by plugging customers and retailers into the financial benefits of circularity.

Redefining the Global Economy

By 2030, the digital economy is set to redefine the global economic landscape through a fusion of cutting-edge technologies and innovative digital platforms, heralding a new era of commerce and communication. With generative AI leading the charge, companies across various sectors are already harnessing its power to co-develop digital products and services, driving unprecedented levels of innovation and efficiency. This trend is anticipated to grow, with AI becoming a cornerstone of corporate strategy, fostering agility and a competitive edge. Furthermore, the democratization of AI will empower even non-technical users to create sophisticated AI solutions, accelerating collaboration and innovation across industries.

The digital economy will also witness the expansion of the Everything-as-a-Service (XaaS) model and modular enterprise strategies, enabling businesses to adapt swiftly to market changes with scalable, on-demand digital capabilities. Moreover, the advent of global extended reality (XR) technologies will revolutionize business operations and customer interactions, blurring the lines between physical and digital worlds.

Crypto’s resurgence, marked by a renewed interest and innovation, will further enrich the digital economy, hinting at the burgeoning potential of decentralized finance and blockchain technologies. The rollout of 5G will amplify this transformation, enhancing connectivity, reducing latency, and enabling a myriad of IoT applications, from autonomous vehicles to advanced healthcare solutions.

Amidst these technological strides, cybersecurity will remain paramount, with the trust economy emerging as a critical theme to ensure safe and secure digital interactions. Simultaneously, digital platforms will catalyze the shift towards a circular economy, promoting sustainability through the efficient use of resources and reduction of waste, thus aligning economic growth with environmental stewardship.

In conclusion, as we approach 2030, the digital economy is poised to become more inclusive, efficient, and sustainable, fueled by technological advancements and innovative business models. This era will not only redefine how businesses operate. but also offer profound opportunities for societal transformation, highlighting the digital economy’s role as a pivotal driver of the future.

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