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2023 Predictions: Azure, AI, and Data

As we close 2022, one event dominates the conversation: ChatGPT’s November 30th launch changed everything. Here are my predictions for how Azure, AI, and Data will evolve in 2023.

The AI Revolution Accelerates

Prediction 1: Generative AI Goes Mainstream

# The AI adoption curve is about to go vertical
ai_adoption_2023 = {
    "chatgpt_impact": {
        "description": "ChatGPT reached 1 million users in 5 days",
        "comparison": {
            "Netflix": "3.5 years",
            "Facebook": "10 months",
            "Spotify": "5 months",
            "Instagram": "2.5 months",
            "ChatGPT": "5 days"
        },
        "prediction": "Every company will have an AI strategy by end of 2023"
    },

    "azure_openai_growth": {
        "current_state": "Private preview for select customers",
        "prediction": "General availability with enterprise features",
        "expected_features": [
            "Fine-tuning capabilities",
            "Private endpoints",
            "Content filtering controls",
            "Higher rate limits",
            "SLA guarantees"
        ]
    },

    "enterprise_adoption": {
        "early_use_cases": [
            "Customer service automation",
            "Code generation and review",
            "Content creation",
            "Document summarization",
            "Data analysis assistance"
        ],
        "challenges": [
            "Accuracy and hallucinations",
            "Data privacy concerns",
            "Cost at scale",
            "Regulatory compliance"
        ]
    }
}

Prediction 2: Copilot Everywhere

copilot_expansion_2023:
  microsoft_365:
    status: "Expected GA"
    capabilities:
      - Word document generation
      - Excel formula assistance
      - PowerPoint creation from outlines
      - Outlook email drafting
      - Teams meeting summaries

  github_copilot:
    status: "Already GA, expanding"
    new_features:
      - Chat interface for code questions
      - Pull request explanations
      - Documentation generation
      - Security vulnerability detection
      - Multi-file context understanding

  power_platform:
    status: "Preview expanding"
    capabilities:
      - Natural language to Power Automate flows
      - Power Apps from descriptions
      - Power BI insights from questions

  azure:
    expected_features:
      - Infrastructure as Code generation
      - Troubleshooting assistance
      - Cost optimization suggestions
      - Security recommendations

  developer_impact:
    productivity_increase: "30-50% for routine tasks"
    job_evolution: "Higher-level problem solving focus"
    skill_shift: "Prompt engineering becomes essential"

Cloud Evolution

Prediction 3: Platform Engineering Dominates

# Platform Engineering becomes the standard approach
class PlatformEngineering2023:
    """
    Predictions for Platform Engineering evolution.
    """

    trends = {
        "internal_developer_platforms": {
            "description": "Every medium+ company builds one",
            "key_components": [
                "Self-service infrastructure",
                "Golden paths for common patterns",
                "Integrated CI/CD",
                "Observability by default",
                "Security guardrails"
            ],
            "tools": [
                "Backstage by Spotify",
                "Port",
                "Humanitec",
                "Custom solutions on AKS/Container Apps"
            ]
        },

        "developer_experience": {
            "focus": "Reduce cognitive load",
            "metrics": [
                "Time to first deployment",
                "Developer satisfaction (DevEx)",
                "Lead time for changes",
                "Deployment frequency"
            ]
        },

        "azure_developer_features": {
            "expected": [
                "Azure Developer CLI (azd) GA",
                "Enhanced deployment environments",
                "Better local development experience",
                "Improved Azure Portal UX"
            ]
        }
    }

    @staticmethod
    def success_factors():
        return [
            "Start with developer research",
            "Build incrementally based on real needs",
            "Measure adoption and satisfaction",
            "Treat platform as a product",
            "Staff with senior engineers"
        ]

Prediction 4: Multi-Cloud Becomes Realistic

multi_cloud_2023:
  drivers:
    - "Regulatory requirements"
    - "Vendor negotiation leverage"
    - "Best-of-breed services"
    - "Disaster recovery"

  azure_arc_expansion:
    current: "Manage servers and Kubernetes anywhere"
    expected:
      - "Arc-enabled data services GA"
      - "Arc-enabled application services"
      - "Enhanced hybrid identity"
      - "Cross-cloud policy enforcement"

  standardization_tools:
    - tool: "Terraform"
      role: "Infrastructure abstraction"
    - tool: "Kubernetes"
      role: "Workload portability"
    - tool: "OpenTelemetry"
      role: "Observability standard"
    - tool: "SPIFFE/SPIRE"
      role: "Identity federation"

  reality_check:
    - "True portability is hard"
    - "Services that matter aren't portable"
    - "Operational complexity multiplies"
    - "Most will stay primary-cloud with edge cases"

Data Platform Evolution

Prediction 5: The Modern Data Stack Matures

modern_data_stack_2023 = {
    "unified_analytics": {
        "description": "Unified analytics platform evolution",
        "components": [
            "Azure Data Lake Storage",
            "Data Factory integration",
            "Synapse Data Engineering",
            "Synapse Data Science",
            "Power BI Premium"
        ],
        "prediction": "Continued convergence and simplification",
        "impact": "Simplifies Azure data architecture significantly"
    },

    "lakehouse_dominance": {
        "trend": "Lakehouse becomes default architecture",
        "drivers": [
            "Delta Lake, Iceberg, Hudi mature",
            "Query performance matches warehouses",
            "Cost advantages",
            "Flexibility for ML workloads"
        ]
    },

    "real_time_analytics": {
        "trend": "Streaming becomes standard",
        "azure_services": [
            "Event Hubs",
            "Stream Analytics",
            "Synapse Data Explorer",
            "Cosmos DB Change Feed"
        ],
        "pattern": "Kappa architecture over Lambda"
    },

    "data_governance": {
        "trend": "Governance built-in, not bolted-on",
        "azure_purview": {
            "expected_features": [
                "Automated data discovery",
                "AI-powered classification",
                "Lineage across Fabric",
                "Policy enforcement"
            ]
        }
    }
}

Prediction 6: AI-Powered Data Engineering

-- The future of data transformation
-- Natural language to SQL becomes common

-- User asks: "Show me the top customers by revenue this quarter
--             who have decreased their ordering frequency"

-- AI generates:
WITH customer_quarterly_revenue AS (
    SELECT
        customer_id,
        SUM(order_total) as total_revenue,
        COUNT(DISTINCT order_id) as order_count,
        COUNT(DISTINCT order_id) / 3.0 as orders_per_month
    FROM orders
    WHERE order_date >= DATEADD(quarter, -1, GETDATE())
    GROUP BY customer_id
),
customer_previous_frequency AS (
    SELECT
        customer_id,
        COUNT(DISTINCT order_id) / 3.0 as prev_orders_per_month
    FROM orders
    WHERE order_date >= DATEADD(quarter, -2, GETDATE())
      AND order_date < DATEADD(quarter, -1, GETDATE())
    GROUP BY customer_id
)
SELECT
    c.customer_name,
    cqr.total_revenue,
    cqr.orders_per_month as current_frequency,
    cpf.prev_orders_per_month as previous_frequency,
    (cqr.orders_per_month - cpf.prev_orders_per_month) as frequency_change
FROM customer_quarterly_revenue cqr
JOIN customer_previous_frequency cpf ON cqr.customer_id = cpf.customer_id
JOIN customers c ON cqr.customer_id = c.customer_id
WHERE cpf.prev_orders_per_month > cqr.orders_per_month
ORDER BY cqr.total_revenue DESC
LIMIT 20;

Security and Compliance

Prediction 7: Zero Trust Becomes Mandatory

zero_trust_2023:
  regulatory_drivers:
    - "Executive Order 14028 (US)"
    - "NIS2 Directive (EU)"
    - "Industry-specific requirements"

  azure_investments:
    identity:
      - "Passwordless authentication default"
      - "Continuous access evaluation"
      - "Cross-tenant access policies"

    network:
      - "Private endpoints everywhere"
      - "Azure Private Link expansion"
      - "Micro-segmentation tools"

    data:
      - "Confidential computing expansion"
      - "Customer-managed keys simplified"
      - "Data residency controls"

  practical_advice:
    - "Start with identity - it's the new perimeter"
    - "Implement Conditional Access policies"
    - "Use managed identities everywhere"
    - "Monitor with Defender for Cloud"

Technology Shifts

Prediction 8: WebAssembly Gains Momentum

// WebAssembly beyond the browser
// Server-side Wasm gains traction

// Example: Spin framework for serverless Wasm
use spin_sdk::http::{Request, Response};
use spin_sdk::http_component;

#[http_component]
fn handle_request(req: Request) -> Response {
    // Near-instant cold starts
    // Language-agnostic (Rust, Go, C#, Python, JS)
    // Secure sandboxing by default

    let name = req
        .headers()
        .get("name")
        .unwrap_or(&"World".to_string());

    Response::builder()
        .status(200)
        .header("content-type", "text/plain")
        .body(format!("Hello, {}!", name))
        .build()
}
wasm_2023_predictions:
  azure_adoption:
    - "Container Apps Wasm support"
    - "AKS Wasm node pools"
    - "Functions Wasm runtime"

  use_cases:
    - "Edge computing"
    - "Plugin systems"
    - "Serverless functions"
    - "Data processing"

  advantages:
    - "Sub-millisecond cold starts"
    - "Strong security sandbox"
    - "Language flexibility"
    - "Small footprint"

Summary: My Top 10 Predictions

predictions_2023 = [
    {
        "rank": 1,
        "prediction": "Azure OpenAI Service goes GA with GPT-4",
        "confidence": "High",
        "impact": "Transformative"
    },
    {
        "rank": 2,
        "prediction": "Every major software product adds AI features",
        "confidence": "Very High",
        "impact": "Industry-wide"
    },
    {
        "rank": 3,
        "prediction": "Microsoft unifies the Azure data platform further",
        "confidence": "High",
        "impact": "Significant for data teams"
    },
    {
        "rank": 4,
        "prediction": "Platform Engineering becomes mainstream practice",
        "confidence": "High",
        "impact": "Organizational change"
    },
    {
        "rank": 5,
        "prediction": "Prompt Engineering emerges as a discipline",
        "confidence": "Very High",
        "impact": "New skills required"
    },
    {
        "rank": 6,
        "prediction": "Container Apps adoption exceeds AKS for new workloads",
        "confidence": "Medium-High",
        "impact": "Simplified operations"
    },
    {
        "rank": 7,
        "prediction": "FinOps becomes standard practice",
        "confidence": "High",
        "impact": "Cost management maturity"
    },
    {
        "rank": 8,
        "prediction": "Zero Trust architectures become mandatory",
        "confidence": "High",
        "impact": "Security transformation"
    },
    {
        "rank": 9,
        "prediction": "AI coding assistants become standard dev tools",
        "confidence": "Very High",
        "impact": "Developer productivity"
    },
    {
        "rank": 10,
        "prediction": "Responsible AI frameworks get regulatory teeth",
        "confidence": "Medium-High",
        "impact": "Compliance requirements"
    }
]

What to Do Now

action_items_for_2023:
  immediate:
    - "Get access to Azure OpenAI Service"
    - "Experiment with ChatGPT for development tasks"
    - "Learn prompt engineering basics"
    - "Review Azure data platform updates"

  q1_2023:
    - "Build AI proof-of-concept for your domain"
    - "Assess current Zero Trust posture"
    - "Evaluate platform engineering maturity"
    - "Review cloud cost optimization"

  ongoing:
    - "Stay updated on AI developments (things move fast)"
    - "Invest in team learning"
    - "Build incrementally, not big bang"
    - "Focus on business value, not technology hype"

Conclusion

2022 ended with a bang - ChatGPT’s launch marked an inflection point in AI adoption. 2023 will be the year these technologies move from experimentation to production. Azure is well-positioned with Azure OpenAI Service, Synapse Analytics, and continued platform improvements.

The winners in 2023 will be those who:

  1. Embrace AI as a tool, not a threat
  2. Focus on developer experience and productivity
  3. Build secure, cost-efficient architectures
  4. Invest in data as a strategic asset

Happy New Year! Here’s to an exciting 2023.

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Michael John Peña

Michael John Peña

Senior Data Engineer based in Sydney. Writing about data, cloud, and technology.