Predictions 2021: Facebook, Disinformation, SPACs, Africa, and a Return to Tech Optimism
Never in my five-plus decades has a year been so eagerly anticipated, which makes this business of prediction particularly daunting. I’m generally inclined to be optimistic, but rose-colored glasses stretch time. Good things always take longer to emerge than any of us would wish. Over 18 years of doing this I’ve learned that it’s best to not predict what I wish would happen, instead, it’s wise to go with what feels most likely in the worlds I find fascinating (for me, that’s media, technology, and business, with a dash of politics given my last two years at The Recount). As I do each year, I avoid reading other folks’ year-end predictions (though I plan on getting to them as soon as I hit publish!). Instead, I just sit down at my desk, and in one rather long session, I think out loud and see where things land.
And off we go….
1. Disinformation becomes the most important story of the year. In some ways, this is foolhardy — like predicting that the election would drive 2020, only to see it overwhelmed by COVID-19. The topic of disinformation feels a bit cerebral and hard to pin down — not as concrete as a pandemic or an election cycle. But I’m convinced 2021 will be the year we all realize that our media/information ecosystem is broken — with disinformation, propaganda, and brazen falsehood its most pernicious externality. Businesses are waking up to the threat this poses to their bottom lines (and to society at large), most scholars and policymakers are already there. In the words of former Republican strategist Steve Schmidt, speaking on a recent Recount podcast: “In a society where there is no ability to distinguish between the truth and the lie, democracy will be lost.” 2021 will be a year where we search for the root causes of our failures over the past few years, and at the center of that failure is a communication system that mindlessly manufactures disinformation. A free and open democratic economy can’t run on bullshit. I’m personally devoting 2021 to exploring how we can navigate the collision of technology platforms, unfettered capitalism, broken media models, and feckless regulatory oversight. More on that soon…
2. Facebook’s chickens come home to roost. Related to #1, yes, and it’s certainly passé to beat up on Facebook. As an OG in the space (“Facebook Can’t Be Fixed,” et al), I’m reluctant to go there once more — our troubles are bigger than one company alone. And for years the company has steamed ever forward, its fortunes unaffected by endless cycles of bad PR. But in 2021, the good ship Facebook will start taking on serious water. Incoming President Joe Biden will set the tone with his distaste for the company, and company’s tone deaf approach to communications will finally fail to deliver the company a pass. (If you missed it, you must watch this insanely scripted game of dodgeball between journalist Tamron Hall and Facebook COO Sheryl Sandberg). The company’s own employees are increasingly uncomfortable with their leadership, and its consumers and marketing partners are increasingly looking for alternatives to a platform they see as toxic and unwilling to change. Toss in policymakers’ thirst for an easy target and a media industry tired of the doubletalk, false narratives, and outright lies, and 2021 will be a dismal year for Facebook — in particular in the United States, where the company will likely admit that it has failed to grow user engagement. And that, to put a fine point on it, will tank the stock, full stop.
3. AI has a mid-life crisis. The past few years have witnessed the shining resurgence of artificial intelligence — breakthrough after breakthrough has led to justifiable optimism that AI-driven innovation will solve both the mundane (Look! It can untangle corporate supply chains!) as well as the divine (Look! It can cure every disease known to humankind!). All of this and more is likely true, but humanity has yet to fully comprehend the potential negative externalities of AI, much less mitigate them. Chastened by our last bout with externality ignorance (see Facebook, above), 2021 will be the year society takes a step back and thinks hard about where this is all going. Setting up the narrative is Google’s mishandling of its relationship with leading AI critic Timit Gebru, but by year’s end, the AI narrative will be as much about hand wringing and regulatory oversight as it is about revolutionary breakthroughs.
4. Then again, a wave of optimism around tech-driven innovation takes root. This is the counter narrative to five-plus years of a “tech as bogeyman” trope. 2021’s optimism will be driven by two major factors: First, a belief that we’re on a path to correct the worst mistakes of the past decade (see #1 — #3 above). And second, a slew of long-developing and real world proofs that technology-driven breakthroughs will bring serious benefits to society at scale. Candidates include biotech and bioinformatics (the core technologies behind the COVID vaccine), blockchain (though I’m certain bitcoin will have at least one of its several crashes this year), and lithium batteries (giving us hope on climate change and driving my otherwise random prediction on gas-powered cars, below).
5. Google does in 2021 what I predicted it would in 2020. And what was that? That Google zags. I wrote: “Saddled with increasingly negative public opinion and driven in large part by concerns over retaining its workforce, Google will make a deeply surprising and game changing move in 2020.” I think this is even more likely given Google is fighting off a terrifying array of massive regulatory actions, and desperately needs to avoid looking like Facebook in the eyes of its employees, consumers, and business partners.
6. Nothing will get done on tech regulation in the US. Blame antitrust. Whether or not Biden decides to continue Trump’s FTC and DOJ actions, he will likely start his own, and keep the focus on antitrust, rather than more thoughtful legislation around disinformation, machine readable data portability, or privacy. There will be some movement — net neutrality will probably get reaffirmed and we’ll fix Trump’s H1-B messes, for example. But by year’s end folks will realize that antitrust suits are essentially kabuki, an exercise designed to go nowhere and maintain the status quo. When Facebook is aggressively calling on Washington to regulate the Internet, you know they’ve done the math and concluded nothing is really going to change. Everyone’s talking about how it’s about time for the government to step up and do something, but I’m deeply cynical about anything changing in 2021. That doesn’t mean we won’t (or shouldn’t) make progress…just that it won’t happen in a year.
7. A “new” social platform breaks out in 2021. I’ve made versions of this prediction in the past, but my timing was off. Given the handcuffs 2021 will place on the traditional players in Big Tech, this coming year presents a perfect opportunity for a breakout player to redefine the social media category. There’s plenty of VC money ready to invest here, and both Tik Tok and Snap have had their moments in the sun. It won’t be some ripoff version of what already exists (sorry, Parler). I’d either look to something like an evolved Signal, an app that already has a growing user base, or a from-nowhere startup that gets super hot, super fast because it’s fundamentally rethought social media’s traditional, serotonin-driven models for engagement and advertising .
8. The markets take a breather, and SPACs get a bloody nose. Back in 1987 I was a cub reporter covering the technology industry. One of the first stories I ever wrote involved a software startup run by a fellow I immediately judged to be a hustler. In our initial interview, he laid out how he was going to use financial engineering to take his small company public via a shell company. It struck me as dodgy then, and it strikes me as dodgy now. I have plenty of industry pals who are involved in SPAC mania now, and as far as I can tell, they’re on the up and up. SPACs can be a healthy and innovative approach to financing companies. But alas, this SPAC trend stinks of easy money and honeytraps for unsophisticated investors and shady operators. So in 2021, SPACs will lose their luster, driven in large part by several spectacular failures (or worse). Related, overall stock markets won’t crash, but by year’s end, they’ll sputter as tech stocks fall out of favor and society begins to realize how much debt needs to be worked through before true growth can reassert itself.
9. 2021 will be prove to be the last year of growth in gas-powered automobiles. There, I did it — I wrote a prediction I wish for, rather than one I can back up with my own lived experience. That said, the aforementioned breakthroughs in lithium battery technology will lead to a wave of new options for vehicle buyers, and in the long lens of history, the early 2020s will be celebrated as the period where we finally overcame our addiction to burning fossil fuels. Please, MAKE IT SO.
10. Africa rising, China…in question. A few years ago, I predicted China was going to crash, but I now realize the world needs China to counter US hegemony. With that in mind, the breakout continent of 2021 will be Africa, home to many of the fastest growing countries in the world, and the focus of years of Chinese investment and diplomacy. After four years of US neglect, the Biden administration will realize it’s dangerously close to losing Africa altogether, and announce a massive investment in the continent. Biden’s China policy will be fascinating to watch, but I’d not wager a cent on where it lands this year.
11. Everyone loses their shit, in a good way. Because we deserve one big ass party, damnit, when this pandemic finally lifts. This is the easiest one to predict, because, well….I’ll be right there with you. Until then, folks, stay safe, wear a f*cking mask when in public, and do what you can to help others get through what is still a dark damn time in our history. See you on the other side.