It doesn’t matter whether you are an entrepreneur or small business owner or a consumer, if you’re eyeing for the next generation of tech startups that’s coming in 2017, it is good to know what tech startup trends to look for as we leave 2016 behind.

According to many experts, the economy of the tech industry in 2017 will be driven by Artificial Intelligence (AI) and machine learning.

Here are some of the top tech startup trends to watch out for in 2017, according to experts.

ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING STARTUPS

In the last year (2016) alone many large firms have invested resources in creating smarter and better tech products using Artificial Intelligence (AI). As the year progressed, technology also advanced enough to let smaller firms join in the AI revolution. Since universities started offering classes about AI technology, several young students got the opportunity to learn many things about AI’s possibilities.

It is widely expected that startup trends in 2017 will be based on the AI and it will become mainstream throughout the tech industry allowing smaller startups to truly innovate in the space. Previously, only a few tech companies had data scientists and access to machine learning resources but this is going to change in 2017.

Artificial Intelligence and improved machine learning will give rise to a bevy of smart devices like robots, as well as smart applications and services like virtual personal assistants.

AI is expected to play an important role in cybersecurity in 2017. According to Cisco, there are nearly 1 million job vacancies worldwide in cybersecurity space and this number is expected to increase to 6 million by the year 2019.

New startups will emerge that recognize the importance of automation in cybersecurity which requires human expertise with AI. This would be the hottest among all other startup trends of 2017.

CHATBOT STARTUPS

Chatbots are automated chat services that interact with us and offer useful information through a chat interface. Artificial Intelligence is helping to make chatbots more conventional. This trend is expected to continue in 2017 and spur even more innovation.

According to a research from Gartner and TechEmergence, chatbots will be the No. 1 consumer application of Artificial Intelligence during the next five years. In 2017, it is expected that a slew of messaging platforms to open their platforms for chatbot integration.

As the chatbot technology gains traction and AI technologies continue to advance, chatbots will become increasingly integrated with backend systems of many companies, changing the way people communicate with businesses.

CYBERSECURITY STARTUPS

Cybersecurity was the talk of the town in 2016 and many experts believe this trend to continue in 2017 as well. Firms looking to reinforce their security defenses invested in security software and other appliances. In 2017, there will be lower investments in endpoint solutions and more in managed services that enhance the existing infrastructure of the firms.

Though enterprises have invested heavily in security products and associated services, many are not getting adequate value from these cybersecurity technologies.

In 2017, there will be a higher demand for firms that provide managed security services since they assist organizations in reducing the risk of a security breach.

DIGITAL TRANSFORMATION AND CLOUD TECHNOLOGY STARTUPS

Digital transformation has picked up pace in 2016 and many firms are joining the digital bandwagon in 2016 and the same trend is expected to continue in 2017. Large enterprises will undergo a digital transformation on a massive scale, empowered by technologies like cloud, big data, mobile, and analytics.

Digital transformation is no more a project or initiative in many companies; it has become the key factor for enhancing business prospects. Each and every enterprise, irrespective of age or industry, must turn into digital in order to gain customer traction and sustain market share.

Digital transformation is happening at a much faster rate and initial competitive advantages will go to those enterprises that can keep pace with the emerging trends in digital transformation. According to IDC, cloud will be a key enabler of digital transformation, and by the year 2020, 67% of enterprise IT infrastructure expenditure will be related to cloud-based technologies.

In the years to come, almost every enterprise will be a cloud service provider to its own marketplace, making cloud technologies an IT concern and a core business operations issue.

AR AND VR STARTUPS

After the humongous success of Pokémon Go, AR (Augmented Reality) has got a big boost and several firms are working on AR related projects. Virtual Reality (VR) and Augmented Reality offer exciting potential for enterprises in 2017 and after.

In 2017, 30% of international firms are expected to experiment with AR and VR in their marketing initiatives. Both AR and VR interfaces serve as the essential gateway to customer engagement and they are progressing much faster than many have anticipated.

VR is going to be implemented by a lot more startups to collaborate with in-office personnel and remote workers. VR and AR will greatly help firms to achieve their goals.

WEARABLE TECHNOLOGY STARTUPS

We have seen wearables like fitness trackers from various brands which become popular in 2016 and the same is expected to continue in 2017 also. The success of Snapchat’s Spectacles (you can record and share videos of up to 10 seconds using spectacles) has infused momentum into the wearables category.

Smart devices are at the intersection of Artificial Intelligence and IoT. These devices include drones, autonomous vehicles and smart appliances which are predominantly in news in 2016 and there will be many startups based on this in 2017.

In 2017, several startups will be based on wearables and smart devices as VR/AR and IoT are considered to be the future of technology.