In 2024, business and technology leaders will leverage the opportunity presented by the attention being received by Generative AI engines to test and integrate AI comprehensively across the business. Many organisations will prioritise the alignment of their initial Generative AI initiatives with broader AI strategies, establishing distinct short-term and long-term goals for their AI investments.
AI adoption will influence business processes, technology skills, and, in turn, reshape the product/service offerings of AI providers.
Ecosystm analysts Achim Granzen, Peter Carr, Richard Wilkins, Tim Sheedy, and Ullrich Loeffler present the top 5 AI trends in 2024.
Click here to download ‘Ecosystm Predicts: Top 5 AI Trends in 2024.
#1 By the End of 2024, Gen AI Will Become a ‘Hygiene Factor’ for Tech Providers
AI has widely been commended as the ‘game changer’ that will create and extend the divide between adopters and laggards and be the deciding factor for success and failure.
Cutting through the hype, strategic adoption of AI is still at a nascent stage and 2024 will be another year where companies identify use cases, experiment with POCs, and commit renewed efforts to get their data assets in order.
The biggest impact of AI will be derived from integrated AI capability in standard packaged software and products – and this will include Generative AI. We will see a plethora of product releases that seamlessly weave Generative AI into everyday tools generating new value through increased efficiency and user-friendliness.
Technology will be the first industry where AI becomes the deciding factor between success and failure; tech providers will be forced to deliver on their AI promises or be left behind.
#2 Gen AI Will Disrupt the Role of IT Architects
Traditionally, IT has relied on three-tier architectures for applications, that faced limitations in scalability and real-time responsiveness. The emergence of microservices, containerisation, and serverless computing has paved the way for event-driven designs, a paradigm shift that decouples components and use events like user actions or data updates as triggers for actions across distributed services. This approach enhances agility, scalability, and flexibility in the system.
The shift towards event-driven designs and advanced architectural patterns presents a compelling challenge for IT Architects, as traditionally their role revolved around designing, planning and overseeing complex systems.
Generative AI is progressively demonstrating capabilities in architectural design through pattern recognition, predictive analytics, and automated decision-making.
With the adoption of Generative AI, the role of an IT Architect will change into a symbiotic relationship where human expertise collaborates with AI insights.
#3 Gen AI Adoption Will be Confined to Specific Use Cases
A little over a year ago, a new era in AI began with the initial release of OpenAI’s ChatGPT. Since then, many organisations have launched Generative AI pilots.
In its second-year enterprises will start adoption – but in strictly defined and limited use cases. Examples such as Microsoft Copilot demonstrate an early adopter route. While productivity increases for individuals can be significant, its enterprise impact is unclear (at this time).
But there are impactful use cases in enterprise knowledge and document management. Organisations across industries have decades (or even a century) of information, including digitised documents and staff expertise. That treasure trove of information can be made accessible through cognitive search and semantic answering, driven by Generative AI.
Generative AI will provide organisations with a way to access, distill, and create value out of that data – a task that may well be impossible to achieve in any other way.
#4 Gen AI Will Get Press Inches; ‘Traditional’ AI Will Do the Hard Work
While the use cases for Generative AI will continue to expand, the deployment models and architectures for enterprise Generative AI do not add up – yet.
Running Generative AI in organisations’ data centres is costly and using public models for all but the most obvious use cases is too risky. Most organisations opt for a “small target” strategy, implementing Generative AI in isolated use cases within specific processes, teams, or functions. Justifying investment in hardware, software, and services for an internal AI platform is challenging when the payback for each AI initiative is not substantial.
“Traditional AI/ML” will remain the workhorse, with a significant rise in use cases and deployments. Organisations are used to investing for AI by individual use cases. Managing process change and training is also more straightforward with traditional AI, as the changes are implemented in a system or platform, eliminating the need to retrain multiple knowledge workers.
#5 AI Will Pioneer a 21st Century BPM Renaissance
As we near the 25-year milestone of the 21st century, it becomes clear that many businesses are still operating with 20th-century practices and philosophies.
AI, however, represents more than a technological breakthrough; it offers a new perspective on how businesses operate and is akin to a modern interpretation of Business Process Management (BPM). This development carries substantial consequences for digital transformation strategies. To fully exploit the potential of AI, organisations need to commit to an extensive and ongoing process spanning the collection, organisation, and expansion of data, to integrating these insights at an application and workflow level.
The role of AI will transcend technological innovation, becoming a driving force for substantial business transformation. Sectors that specialise in workflow, data management, and organisational transformation are poised to see the most growth in 2024 because of this shift.
Ecosystm research reveals a stark reality: 75% of technology leaders in Financial Services anticipate data breaches.
Given the sector’s regulatory environment, data breaches carry substantial financial implications, emphasising the critical importance of giving precedence to cybersecurity. This is compelling a fresh cyber strategy focused on early threat detection and reduction of attack impact.
Read on to find out how tech leaders are building a culture of cyber-resilience, re-evaluating their cyber policies, and adopting technologies that keep them one step ahead of their adversaries.
Download ‘Cyber-Resilience in Finance: People, Policy & Technology’ as a PDF
As organisations demand more industry-ready and localised services, global technology companies feel an active need to re-evaluate their capabilities and bridge gaps through partnerships and acquisitions. Ecosystm has been helping global technology companies evolve their partner strategies to remain relevant to the Asia Pacific market.
Our analysis of the tech acquisition landscape in Asia Pacific over the last three years shows that:
- While global tech providers are expanding their presence in Australia and Singapore, emerging markets in Southeast Asia are receiving a fair share of attention. 17% of tech acquisitions by global tech companies between 2020-22 have been in these markets.
- A quarter of the acquisitions were for product and platform capabilities. The rest were all done to bolster services portfolios – such as managed technology, business process, implementation & integration and consulting services.
- A large percentage of the acquisitions are to bolster industry capabilities through transformative technologies such as AI/ML, cloud and cybersecurity.
Here is the analysis of more than 100 acquisitions made by large global tech companies in Asia Pacific between 2020-2022.
Download ‘Asia Pacific Tech Acquisition Trends’ as a PDF