a wide range of technological and business online activities

Dejan teŠić Co-Organizer of Adria Summit

boris VujiČić Co-Organizer of Adria Summit

Adria Summit, Future of Digital Commerce is a regional business conference designed with the aim of becoming a leading platform for the exchange of ideas, experiences and contacts in the field of digital commerce. For the second year in a row, we are gathering leading leaders and experts from the Adria region and beyond, who will discuss global trends that have an impact on the business climate in these areas in the wonderful Kempinski Savudrija hotel, during a 2-day conference and weekend get-together. If last year’s event was dominated by topics such as post-pandemic recovery of the economy, problems in the global supply chain and unexpected growth in inflation, this year we expect topics related to the impact of artificial intelligence on digital business, further innovations in market and business models, the possible banking crisis and its consequences on the liquidity of companies, as well as the challenges faced by young and more experi- enced entrepreneurs in local markets. We will try to give answers to some of the burning questions, and even if we don’t have all the answers, at least we want to start the conversation...

As a global phenomenon, digital trade is certainly not immune to the consequences of geo-political trends and conflicts. The ques- in general, but are these increased volumes of business here to stay or are we already sensing a dramatic decline...

The new regulation regarding ESG (Environmental, social, and governance) operations is increasingly affecting the business decisions, both of the companies participating in the value chain, and of the new regulation regarding esg (environmental, social, and governance) operations is increasingly aFFecting the business decisions, both oF the companies participating in the value chain, and oF the banks that Finance their business tion is how tensions in Southeast Asia and the decline in consumer spending power will impact the global supply chains. It is interesting to note that the price of a cargo container that transports goods from China to Europe reached over 20,000 euros 2 years ago, and today it can be obtained for a tenth of that amount. The pandemic, which, we hope, is now behind us, had a great impact on the growth of the number of transactions and trade the banks that finance their business. Given that our region today plays a role in the production chain of European products and services, how did countries and companies from this region prepare for the new EU ESG regulation?

In the last few months, US IT companies have laid off over half a million experts and it doesn‘t end there... Is this a consequence of preparations for a new wave of artificial intelligence development or an announcement of the coming recession? How are IT companies in our region preparing for the next business period, given that many provide services in those markets?

Will the historically record-high reference interest rates manage to bring down the inflation, but also increase unemployment and lead to a longer period of recession in developed economies? If banks do not increase interest rates on savings, will money continue to migrate to more attractive financial products? And if they raise interest rates, what impact will that have on the already weakened profitability and financial situation.

Does the volatility accompanying cryptocurrencies limit the faster development of the application of blockchain technology in business in some way? Will the announced regulation of cryptocurrencies lead to a greater number of institutional investors and new ways of using them in everyday life, or is it just the preparation of central banks for the introduction of digital national currencies (CDBC)?

ChatGPT solution of the company OpenAI became the next big thing only 4 months ago, and some are already worried about the survival of the human race...

Is this fear justified or is it just fear of the unknown? New versions of ChatGPT can already create music and video from given text, which will represent a serious blow to the creative industry by raising serious questions about intellectual property rights. According to Elon Musk, things are „moving in a strange direction, and very quickly,“ so there are increasing calls for regulation of advanced artificial intelligence. Is this a step in the right direction or will it lead to information control?

The Italian regulator has already announced the ban on some AI solutions, referring to the EU GDPR regulation..

How can advanced AI lead to new channels of sales and customer service, as well as a new level of efficiency in the use of business applications and technologies, resulting in reduced business costs.

Are all these developments in the IT and banking sector predominantly limited to the American market, or is there a danger of the crisis spilling over into European and even markets in our region?

Nowadays, the term ‘Digital Commerce’ means a wide range of technological and business activities that are carried out online. And while ‘eCommerce’ is a term that basically implies the sale of material (brick&mortar) goods through the Internet and other online channels, along with the logistics processes related to the delivery of those goods, ‘Digital Commerce’ additionally includes the exchange of digital intangible goods and content, such as : software, telco services, streaming video and music content, gaming, cryptocurrencies and crypto tokenized assets, design solutions, educational content and much more that shapes the so-called metaverse. This economy, which almost did not exist until just twenty years ago, today accounts for more than 70% of all economic flows and transactions that are carried out through the Internet.

The evolution from Web2 to Web3 has moved the Internet from centralized models of creation and control over data and various contents, to more democratic decentralized models in which even smaller participants get more significant roles, and the possibility of concluding ‘smart contracts’ without the need to involve a ‘trusted third party’ fundamentally changes business models and established banking financial services.

It is clear today that crypto blockchain technology as an essential element of the metaverse will be very present in the years and decades to come. Despite all doubts and ups and downs of the market, the use of digital assets and the number of diverse applications of the technology is constantly growing, both in small innovative companies and in the largest companies and financial institutions in the world. At the same time, an increasing number of countries are working on the introduction of digital currencies - ‘Central Bank Digital Currencies’.

The banking industry, which still hasn’t completely recovered from the consequences of the 2008 crisis and the weight of non-performing loans that burdened their capital structure continues to be under constant pressures to reduce the costs of doing business and the challenges placed before them by new tech companies. Despite the fact that investments of banks and the banking sector in the digitization of business models are significantly higher than in other industries, which still makes them the most attractive consumers of ICT sector services, and despite the fact that the capital base is concentrated in the banking sector, agile fintech companies and other challengers in the conditions of liberalized financial markets, are increasingly occupying spaces traditionally occupied by banks. In addition, the pandemic and its consequences, and then the coming inflation, opened up new challenges in managing the balance sheet positions of banks, and created an environment that led to the recent collapse of several institutions. That banks and the banking sector are faced with a massive redefinition of business models is clearly shown by the historically low market valuations, as well as the obvious processes of consolidation in the banking sector with the disappearance of a significant number of traditional players.

How the financial sector will adapt to the new conditions, and in what ways it will represent reliable and crisis-resistant support for the development of digital commerce in the future, will be among the central topics that will be discussed at the upcoming Adria Summit.

Adria Summit was conceived as a platform that connects business leaders and experts of the region from different areas of industry, and aims to exchange knowledge, positive and negative experiences that brings accelerated technological development. In addition to the usual panel discussions, the program will also include specialized interactive presentations, workshops and sessions, with additional formal and informal forms of discussion. In addition, a special masterclass on the fintech industry was organized, prepared according to one of the first accredited academic programs in this field in the UK.

The Summit pays special attention to innovative entrepreneurship as the driver of all changes. A special segment of the program has been organized where a number of selected innovative companies from the region, which have overcome initial challenges and reached the stage of accelerated growth, will have the opportunity to share their experiences with other participants, and in the presence of representatives of the investment community, from business angels, via venture funds and private capital, to large institutional investors. The intention of the organizers is to point to good examples and to influence the improvement of the environment for the development of innovative entrepreneurship with a shared vision of a more advanced and humane society through open communication between the startup community, technological development centers, professional investors and state institutions.