Disruptive technology, or disruptive innovation, refers to innovation that upends traditional methods of industry, creating new markets that change the way consumers and companies operate. Like the first smartphone or today’s online streaming platforms, these goods and services introduce novel approaches that promise to challenge the status quo, completely overturn existing business models and entirely reshape industries.
What Is Disruptive Technology?
Disruptive technology refers to novel innovations that transform an industry’s landscape, either serving overlooked customers within existing markets or creating new markets entirely.
What Is Disruptive Technology?
Disruptive technology is any innovation that impacts consumer, company and industry behavior to the point of generating new markets, transforming conventional business operations and sometimes displacing established markets altogether. Disruptive technology can replace an existing industry system or staple when it’s considered higher quality, more efficient or more valuable to customers than current innovations. It often emerges from risk-taking companies looking to target new markets and fulfill unmet needs within certain industries.
The term ‘disruptive technology’ was coined by professor Clayton Christensen in a 1995 Harvard Business Review article, identifying it as a strategy small startups could use to eventually displace major players by addressing the needs of overlooked consumers. Once these entrants move upmarket and gain mainstream adoption, established companies must adapt or risk shuttering completely.
“Disruptive technologies bring about substantial change, rendering previous methods or technologies obsolete,” Iu Ayala Portella, CEO and founder at Gradient Insight, a data science consultancy that specializes in artificial intelligence, told Built In. “Incumbents often scramble to catch up, and new entrants emerge,” he said, noting that the shift in market leadership can lead to regulatory changes, ethical discussions and even changes in consumer behavior.
12 Examples of Disruptive Technology
Without going as far back as the wheel, the following list includes the latest innovations that are changing the game.
1. Generative AI
Generative AI is a type of artificial intelligence that uses generative models to create content. Using massive amounts of data, these machines learn how to generate new content — spanning text, images, audio and video — by way of complex algorithms and neural networks. By identifying patterns and structures from an existing data set, these systems are able to answer prompts inputted by a user, predicting one word or pixel at a time.
Why it’s disruptive: AI has already demonstrated the ability to master specific tasks like handling legal paperwork, making trading decisions and automating email marketing campaigns. Now, leading AI chatbots like ChatGPT, Gemini and Claude AI possess multimodal capabilities, meaning they can process various types of data. All of this is building up to agentic AI, or the use of AI agents to perform a broader range of tasks without any human assistance.
The rapid rise of generative AI has sparked ethical discussions around issues like AI safety, copyright protections and job loss. But that hasn’t stopped its use in technologies like facial recognition, chatbots and virtual assistants. In fact, the push to make AI open source and the Trump administration’s hands-off approach will likely cause the industry to grow even more in the coming years.
2. Edge Computing
Edge computing is a distributed computing framework that brings data processing and analysis closer to where it’s generated, rather than relying solely on centralized cloud servers.
Why it’s disruptive: By processing data right at the ‘edge’ (closer to where it’s needed), edge computing reduces latency, which is crucial for applications that operate in real-time, like autonomous vehicles and augmented reality. When paired with observability, edge computing can also speed up processes and boost productivity. These benefits make the technology a must-have for any sector that handles data or data analysis.
For example, edge computing allows for real-time patient monitoring in healthcare, making data more immediate and accessible. In manufacturing, it improves automation and quality control by minimizing delays. It’s also playing a significant role in the development of smart cities, where it manages traffic, security, utilities and the distribution of energy in smart grids.
And as AI continues to play a larger role in society, edge computing can help fiber optic networks manage the increasing power demands of AI technology. In tandem with AI, edge computing also enables the real-time processing required for tasks like facial recognition, language processing and object detection.
3. Virtual, Augmented and Mixed Reality
While virtual reality is a fully immersive, computer-generated and interactive digital environment that simulates the experience of being in a totally different place, augmented reality simply overlays real-world surroundings with a sort of digital filter. And, as you may have guessed, mixed reality is a blend of the two. These digitized experiences are typically delivered through a device, like a wearable headset, glasses, contact lens or smartphone, and have developed beyond the game room.
Why it’s disruptive: These immersive tools can help healthcare professionals practice complex surgical procedures via a digital test run or foster empathy by virtually experiencing a patient’s symptoms. In retail, stores like IKEA and Sephora are using AR apps to help customers visualize furniture or test makeup virtually before making a purchase. This same tactic is being used in design, real estate and architecture, where clients may walk through digital, 3D models before breaking ground. In education, bringing interactive textbooks and educational apps to life with immersive, virtual lessons and field trips can improve retention rates among students.
Businesses are beginning to realize the upsides of VR as well, using it to train employees, aid in product design and boost engagement with marketing campaigns. The technology promises to enhance employee productivity overall, setting the stage for it to become a more prominent workplace tool.
4. Blockchain
Blockchain is a public, digital ledger that records transactions in a secure and transparent way, making it virtually tamper-proof. By using a peer-to-peer network, the decentralized system removes the need for intermediaries, like banks or notaries, and enables people to transact directly with one another. Blockchain is reimagining how data is stored, verified and transferred — making it a useful application across various industries.
Why it’s disruptive: In the financial sector, blockchain authenticates faster and cheaper cross-border payments while reducing the risk of fraud. And industries like supply chain management use blockchain to ensure validity and traceability of products, while the healthcare sector uses it to encrypt and safely transfer patients’ medical records and track the outbreak of diseases.
Although scandals like the FTX fallout caused the blockchain industry to slow down, the industry is poised to make a comeback. The technology remains crucial for cybersecurity efforts, leading governments to turn to it for tasks like managing voting during elections. This is on top of the impact blockchain has already had on sectors like food, music, marketing and education. And blockchain will likely gain more significance and wider applications following the Trump administration’s move to deregulate the cryptocurrency industry.
5. Internet of Things
The Internet of Things, or IoT, refers to a digitally connected network of smart devices. These items, like your Alexa or smart TV, are embedded with sensors, software and connectivity, which is how they collect and exchange data over the internet.
Why it’s disruptive: IoT transforms industries through collecting, analyzing and utilizing data from a multitude of devices and sensors that foster greater automation and efficiency. In agriculture, IoT fosters more sustainable and productive farming practices with smart sensors that monitor soil conditions, weather, and crop health. Smart cities use IoT to manage resources more efficiently and improve public services, while reducing the environmental footprint. From healthcare with wearable devices and remote patient monitoring to logistics with real-time asset tracking, IoT is revolutionizing the way we live, work, and interact with our environment.
The main challenge to the growth of IoT is the security concerns that come with a proliferating number of connected devices. That said, IoT remains vital in an increasingly interconnected world, and equipping it with artificial intelligence will only raise the expectations and excitement around the technology.
6. Robotics
Robotics is where engineering and science meet to design, construct and apply mechanical robots. These programmable machines are typically equipped with sensors, artificial intelligence and the autonomy to carry out tasks.
Why it’s disruptive: The power of robotics as a disruptive technology is in its ability to produce mechanized systems that can consistently and precisely perform dangerous tasks. Employing a robot in place of a human alleviates safety concerns, boosts productivity and efficiency while cutting labor costs.
Industrial robotics have stepped onto assembly lines while others assist in surgical operating rooms, making procedures more precise and less invasive. Robot bees have supplemented waning bee populations, helping pollinate crops and monitor hive health, while social robots aid social-emotional learning, provide customer service and general companionship. Other models explore space, offering a cheaper, safer and more efficient substitute for human-led missions.
The future of robots is closely tied to the future of AI. As AI advances, it can support more intelligent robots that can take on a variety of roles. In particular, the development of collaborative robots, or cobots, and humanoid robots hint at even more applications. Because cobots are designed to work alongside humans, employees may find themselves working in tandem with robots on a regular basis. In addition, companies like Tesla are refining their humanoid robots, bringing us closer to a human-robot workforce.
7. Green Tech
Green tech, short for green technology, is a diverse set of innovations and practices aiming to promote sustainability and reduce environmental impacts. Also known as cleantech, its goal is to curb or reverse the effects of human activity on the planet through things like carbon emission reduction, electric alternatives or responsible waste disposal.
Why it’s disruptive: Green tech, poised to surpass $105 billion by 2032, qualifies as a disruptor since it challenges established norms, unveiling new opportunities for business and industry as the byproduct of a transition to cleaner alternatives. The eco-conscious shift is supported by both a global demand for ethical consumption as well as a widespread regulatory framework combating climate change.
One example of green tech is vertical farming — an indoor, tech-assisted alternative to farming that produces crops in a stacked fashion to reduce water use and the need for vast tracts of land. While combating air pollution with zero tailpipe emissions, electric cars are agitating conventional automotive companies to figure out how to stay competitive as more resources pour into longer-lasting batteries and implementing charging infrastructure and techniques.
The fate of other technologies also rests on greentech, adding to its potential for disruption. When it comes to AI and data centers, energy consumption is a major problem. Approaches like green computing offer ways to reduce the environmental impact of AI, and more greentech solutions will be needed to ensure new tech doesn’t do lasting damage to the planet.
8. 3D Printing
3D printing is a process that uses specialized equipment to create physical objects from a digital file, one thin layer at a time. This additive manufacturing method provides a pathway to rapid and cost-effective prototyping, allowing designers and engineers to physically render one-of-a-kind concepts via computer-generated designs.
Why it’s disruptive: In the medical field, 3D printing can be used to design functioning organs, enhancing patient care and outcomes. The aerospace and automotive industries benefit from 3D printing’s ability to craft lightweight and complex parts, improving fuel efficiency and performance. (It’s even built a rocket from scratch.) The food industry is testing out ways in which it can apply 3D printing for aesthetics, automation and sustainable purposes, while construction startups use this tech to build housing with little human oversight and in record times.
At large, 3D printing is reshaping the manufacturing landscape, giving rise to decentralized and on-demand production, which reduces waste, lowers costs and undercuts traditional supply chain flows. It’s also allowing manufacturers to 3D-print metal, resulting in lighter-weight materials that can be used for various structures.
9. 5G
5G, the fifth generation of wireless technology, is the latest standard for mobile communication and connectivity. It’s a leap forward in terms of data speeds, latency, network capacity and connectivity compared to its predecessor, 4G, performing 100 times faster on average and peaking at 20 gigabits per second. Being able to transmit data at incredibly high speeds, with low delays, means that more devices can connect to a network simultaneously without error.
Why it’s disruptive: This level of instantaneous connectivity will fundamentally change the way we communicate, both with each other and with technology, and set the stage for large-scale disruption across various sectors. In healthcare, 5G delivers fast and stable connections to support telemedicine, allowing doctors to perform remote surgeries and share medical data in real time. Autonomous vehicles rely on 5G’s low latency and high bandwidth to provide instantaneous communication between its sensors and the surrounding environment in order to execute urgent decision-making and respond to unpredictable circumstances or behaviors.
The logical next step for 5G is to develop faster speeds until it is succeeded by 6G. Improved speeds mean more efficient IoT networks that can support technologies like light fidelity and vehicle-to-everything infrastructure within a connected world.
10. ‘As-a-service’ Models
‘As-a-service’ models refer to a paradigm shift in how products and services are delivered, where instead of traditional ownership, you access them on-demand, often through subscription-based or pay-as-you-go schemes. Cloud computing, connectivity and application programming interfaces — which allow different software systems to interact — make ‘as-a-service’ platforms possible.
Why it’s disruptive: No longer bogged down by closed systems and hardware, this disruptor creates ease and flexibility in the ways brands do business and how a customer experiences a product or service.
For example, in the software industry, software-as-a-service (SaaS) alters how businesses use and pay for software, reducing upfront costs and increasing accessibility. Other players in the tech sector now offer infrastructure-as-a-service (IaaS), where companies can outsource their IT infrastructure, alleviating data storage and cloud computing pain points. Platform-as-a-Service (PaaS) is another cloud-based service that lets developers focus on coding, while the platform manages the rest.
Other iterations include data-as-a-service (DaaS), which leverages data sets for decision-making; function-as-a-service, which involves a cloud provider managing infrastructure so developers can focus on coding; database-as-a-service, which uses a third party to manage infrastructure while teams build applications; and mobility-as-a-service, which combines different types of transportation under a single app for quicker access.
11. Quantum Computing
Quantum computing uses quantum mechanics to solve mathematical problems that are too complex for traditional computers to handle. This type of computing runs on a unit known as a qubit, which relies on superposition to remain in multiple states at once. In contrast, traditional computers use binary, alternating between ones and zeroes. With qubits, quantum computing can simultaneously encompass ones, zeroes and everything in between, making them much more powerful than their classical counterparts.
Why it’s disruptive: Quantum computers possess far greater capabilities than their predecessors, promising to solve problems that take traditional computers years in a matter of hours. While quantum has yet to experience a breakthrough moment, the increasing reliability of quantum computers is establishing them as a viable option for a range of industries.
Among its varied applications, quantum computing is being used to improve weather forecasts, accelerate drug development and create more realistic video games. At the same time, there are fears that quantum computing could be used for nefarious purposes like cracking passwords. This won’t stop quantum computing from becoming more widespread, but different stakeholders may need to carefully consider their priorities as the technology enters the mainstream.
12. Nanotechnology
Nanotechnology refers to creating or modifying objects by initiating changes at the molecular level. Altering an object’s atoms can result in new chemical, physical and visual properties. For example, tweaking a material on the nanoscale can increase its conductivity, durability and robustness.
Why it’s disruptive: Nanotechnology has already left its mark on a number of industries. In the fashion industry, nanoparticles can be used to make fabrics water-repellant and resistant to odors. Nanotech can also produce more durable car coatings and stronger sports equipment.
Looking forward, the future looks bright for nanotechnology. Ultra-tiny sensors known as smart dust could be deployed in different settings to monitor air quality, gather information on farm soil levels and track patients’ vital signs. Nanorobotics is another emerging area where robots built on the nanoscale could be used for situations like safely releasing a drug into a patient’s body. While these applications remain theoretical, the realization of smart dust and nanorobotics would open up a whole new world of possibilities.
Advantages of Disruptive Technology
Disruptive technologies are often creative solutions to age-old problems. They’re smarter than what’s readily available and benefit both the company and consumer in the following ways.
1. Innovative
By definition, disruptive technologies change the game. The term is reserved for breakthrough products, services and solutions that fundamentally change the way in which one or several industries operate. For example, consider how we can gather information on the internet instead of from libraries or newspapers, or how we can watch shows on streaming services rather than cable television.
2. Accessible
When undercutting existing markets, it’s important to launch a product or service that’s easily accessible to the masses. Attracting a sizable audience is a common feature of disruptive tech, as they often hold cross-sectional appeal.
“[Disruptive technology] democratizes access to capabilities that were once exclusive, making advanced technology available to a broader audience,” Portella said. “This often involves reducing costs or simplifying complex processes.”
3. Efficient
If a product or service is enough to invert an industry for good, then it must be more than just a better mousetrap. Disruptive tech often involves automation, streamlined workflows, real-time capabilities and data-driven decision-making, resulting in increased productivity and, oftentimes, new markets.
4. Affordable
Disruptive technologies sometimes devastate incumbents by offering high-value products at low costs. When Google and Apple launched their respective maps apps at no cost to the user, a service that now comes preloaded on any smartphone or built into newer vehicle models, this was a devastating blow to stand-alone navigational systems, like the TomTom or Garmin devices.
Disadvantages of Disruptive Technology
Disruptive technology resets the standard and any new infrastructure is built around it. The downside to such drastic change, though, is that not everyone is equipped to make it through.
1. Uncertainty
It may take a while for certain innovations to be recognized as true disruptors, as the risk may not seem worth it in the beginning for early-round investors. And, while some ideas may seem brilliant at first, even reaching mainstream status soon after launch, there is no guarantee it’ll last long. The next disruptor may be just around the corner.
“In my experience, skepticism is one of the most common events to unfold after a disruptive technology emerges,” said Cesar Johnston, CEO at Energous, a semiconductor company powering wireless IoT tech. After the skeptics are dealt with, the next hurdle is educating the market about your product and why it’s needed. “After that, one of two things can happen: acceptance or hesitation.”
2. Job Loss
As disruptors rise, sustaining technology and the businesses that back them may falter — in lieu of a successful pivot. Right now, the biggest disruptor is artificial intelligence. The technology has forever changed the workplace, with a 2025 McKinsey & Company report revealing that 92 percent of companies plan to invest more in AI and 47 percent of C-suite members admit their companies are slowly building their own generative AI tools.
And this may only be the tip of the iceberg. According to a 2024 International Monetary Fund report, about 40 percent of jobs across the globe will be impacted by AI. This number jumps to 60 percent when narrowing the scope to focus on advanced economies.
3. Resistance to Change
Even if innovative technology seemingly hits all the right marks, it may still be faced with a wall of resistance barricading it from truly becoming a disruptor. Today, virtual and mixed reality systems are all the rage; however, early iterations of them, like Google Glass, flopped due to timing and steep price points, despite being poised as market disruptors.
“One major disadvantage of disruptive technologies is that adoption can be hindered by industries that have been accustomed to operating a certain way for the past decade or more,” Johnston said. “When certain industries are stagnant and do not evolve at the same rate as the rest of society, this can create a delay in new tech being created and incorporated.”
Frequently Asked Questions
What is disruptive technology?
Disruptive technology refers to novel innovations that serve overlooked customers within existing markets or create entirely new markets, which allows them to eventually displace established companies.
Why is disruptive technology good?
Disruptive technologies transform sectors, create new markets and more enjoyable user experiences. These novel goods and solutions challenge the status quo, and are accessible, affordable and efficient.
What are examples of disruptive technologies?
A few examples of disruptive technologies include generative artificial intelligence, virtual reality, 3D printing and quantum computing.
Is ChatGPT a disruptive technology?
Yes, ChatGPT is considered a disruptive technology because it has reshaped a number of processes in everyday life and the workplace. It’s now used for a range of applications like crafting marketing emails, solving coding problems and writing song lyrics.
Is Netflix a disruptive technology?
Yes, Netflix is considered a disruptive technology because it forever altered the way people watch movies and consume content. In contrast to Blockbuster and its physical store approach, Netflix began mailing DVDs to customers as part of its subscription service. It later established a streaming service, giving consumers instant access to a wider variety of viewing options.