In an age of rapid technological evolution and economic flux, the field of business valuation is not immune to changes that shape the larger business landscape. To anticipate the future, it is imperative to examine the trajectory of these shifts, as they will inevitably influence the methodologies and practices business valuation firms employ. This article seeks to provide an insightful exploration of the emergent trends and plausible predictions that could shape the future of business valuation.

One major shift that has been gaining momentum is the increased utilization of artificial intelligence (AI) in the valuation process. Not only does AI eliminate the risk of human error, but it also drastically minimizes the time taken to conduct valuations. However, it's important to recognize that AI, while an asset, is not a panacea. The strength of AI lies in its data processing capabilities, but it lacks the human ability to intuitively interpret the qualitative aspects of a business. Hence, a balanced approach where AI supplements, rather than supplants human inputs is advisable.

Another significant trend is the growing emphasis on intangible assets in the valuation process. Traditionally, physical assets such as plant, property, and equipment constituted the bulk of a company's value. However, the shift towards a knowledge-based economy has underscored the importance of intangible assets like brand equity, intellectual property, and customer relationships. This trend necessitates a reassessment of valuation models to incorporate the monetary value of these intangible assets.

Economic volatility, which can be attributed to a host of factors ranging from geopolitical tensions to global pandemics, continues to impact business valuations. To navigate this, valuation firms may have to adopt an increasingly robust approach to risk management and scenario planning. This could involve the application of real options theory, which ascribes value to the flexibility businesses have in making strategic decisions under uncertain conditions.

The rise of sustainability and corporate social responsibility (CSR) is another key trend affecting business valuations. As businesses increasingly embed sustainability into their strategies and operations, it becomes a crucial value driver. This trend will require valuation firms to develop new methodologies that can adequately capture the financial impact of a company’s sustainability initiatives.

In terms of regulation, the global push for transparency and accountability in financial reporting is likely to intensify. This may lead to stricter regulatory requirements for valuation firms, including potential shifts in the standards and guidelines that govern the valuation process. Regulatory arbitrage, or the practice of capitalizing on discrepancies in different regulations, may become less feasible as regulations become more harmonized.

On the flip side, the ongoing drive for harmonization of valuation standards worldwide could make cross-border transactions smoother, making it easier for businesses to expand globally. Hence, valuation firms that can navigate the complexities of valuing businesses in diverse jurisdictions will have a competitive edge.

In conclusion, as we gaze into the crystal ball of the future of business valuation, it's clear that the field is set to become more sophisticated, nuanced, and pivotal. While these predictions are informed speculation, being aware of these possible shifts can prepare valuation firms to better adapt and thrive in the evolving landscape. It's an exciting time for the industry, and those who can skilfully navigate this wave of change will undoubtedly emerge as leaders in the field.