Forrester Research’s latest 2024 predictions report emerges as a vital beacon, illuminating the path for AI’s calculated expansion while simultaneously alerting business magnates to the burgeoning “shadow usage” phenomenon. This refers to a trend where employees, in their quest for enhanced productivity, are increasingly depending on personal AI tools, bypassing official channels. The 38-page dossier forecasts a tripling of AI platform budgets come 2024, as corporations pour funds into scalable systems designed for crafting, deploying, and overseeing AI models. Yet, Forrester’s analysis suggests that such investments may not fully quench the thirst for AI-driven efficiency among the workforce.
Indeed, the report projects that a staggering 60% of employees will gravitate towards self-sourced AI tools for work-related tasks, thereby ushering in a new era of regulatory and compliance complexities. In response, a notable 85% of companies are predicted to broaden their AI arsenals, embracing open-source frameworks like GPT-J and BERT, stepping beyond the conventional bounds of widely-used proprietary models such as ChatGPT. Concurrently, a proactive 40% of enterprises are anticipated to fortify their AI governance, preemptively bracing for the impending wave of regulations from international powerhouses like the E.U., U.S., and China.
In a particularly innovative vein, Forrester postulates that a prominent insurer will unveil a novel “AI hallucination insurance” in 2024. This pioneering insurance variant is tailored to mitigate the repercussions of AI inaccuracies, specifically covering the damages attributable to the AI’s erroneous outputs or “hallucinations” as they become more widespread in use. Forrester’s 2024 Predictions Report caps off a tumultuous year that witnessed the meteoric rise of generative AI’s popularity among both consumers and employees alike.
The document adopts a tone of measured pragmatism, urging decision-makers to steer clear of the seductive distractions offered by AI’s glamour, instead focusing on formulating strategies that harness AI’s nascent capabilities for tangible business outcomes. The year 2023 has been anointed as the “year of AI,” a period characterized by a flurry of consumer AI applications, a cascade of corporate mergers and acquisitions, eye-catching company valuations, and robust venture capital alongside hefty internal funding rounds.
Looking ahead, Forrester predicts that the year 2024 will catalyze corporate teams to adopt a forward-thinking stance, devising impactful AI strategies that not only fulfill the technology’s potential but also remain vigilant towards the evolving landscape of regulations and nascent risks. The report distills several key insights, predicting that the shadow use of personal AI tools at work will precipitate security vulnerabilities, while the demand for AI capabilities will trigger a tripling of AI platform budgets.
In addition to these forecasts, the report foresees a sweeping adoption of open-source AI models by an overwhelming 85% of corporations, and a strategic 40% of enterprises are expected to prioritize investments in AI governance to ensure compliance. A new insurance market for “AI hallucination” errors will emerge, safeguarding against the pitfalls of AI errors. Furthermore, the compound annual growth rate (CAGR) for generative AI is projected at a robust 36% from 2023 to 2030, highlighting the anticipated surge in adoption.
The enterprise shift from AI research and development to real-world business applications is imminent, as companies prepare to navigate the challenges of managing unauthorized AI usage while driving intrinsic value. Tech leaders find themselves under the dual pressures exerted by both employees and executives to onboard AI solutions. The forthcoming year marks the beginning of the “era of intentional AI,” where the previous year’s hype is expected to give way to a more deliberate and strategic application of AI technologies.
These prognostications stress the imperative of a well-conceived AI strategy, particularly as generative AI reinvigorates the business sector with a new wave of enthusiasm. Corporate chieftains are thus encouraged to proactively confront potential perils while fostering the expansion of responsible AI practices. The Forrester report stands as a testament to the remarkable progress in the AI and data analytics fields and signals the expansive trajectory still ahead. As the calendar turns to 2024, the insights from this report will serve as a crucial guide for business leaders, technologists, and policy-makers as they chart the future of AI, data analytics, and automation.