Artificial Intelligence (AI) is playing an increasingly central role in the constant flow of technological evolution. In Germany, around twelve percent of companies use AI, as the Federal Statistical Office (Destatis) recently reported based on data for 2023. The use of AI is significantly more widespread in large companies with more than 250 employees than in smaller companies. Around 35% of large companies use AI technologies, compared to 16% of medium-sized companies with 50 to 249 employees and 10% of small companies with ten to 49 employees. The year 2024 therefore promises to bring exciting innovations and changes for almost all company sizes and industries. This blog post therefore highlights the trends and developments in the AI sector that will fundamentally change not only the IT industry, but also the way we work and live.
ALLEHERZEN makes predictions
We dare to look into the crystal ball and put forward eight theses on what we expect for the field of AI in 2024.
Generative AI at its zenith for the time being
The year 2024 marks a significant turning point – generative AI is expected to reach the peak of its hype for the time being. This does not mark the end of its development, but the beginning of a new era of integration and innovation. Generative models, known for their ability to create content such as text, images and music, will increasingly merge with traditional AI methods. This synergy makes it possible to solve more complex problems and create real business value. Companies that master this integration can look forward to a wide range of new applications, from improved automated customer service solutions to advanced analytics tools. The merging of generative AI with proven models will thus represent a turning point where AI is no longer seen as just a tool, but as an integral part of business strategy.
AI is becoming more invisible
Artificial Intelligence is increasingly becoming an invisible force operating in the background. This subtle presence of AI in almost every software and digital tool is transforming the way we experience technology. From personalized user interfaces to intelligent automation features, AI will significantly increase efficiency and usability without being obvious.
Generative AI optimizes the user experience
Generative AI will play an increasingly important role in the UX sector. The technology enables a significantly improved design and personalization of user interfaces, which increases the overall quality and accessibility of digital products. With the ability to create dynamic and intuitive interfaces, generative AI will fundamentally change the way users interact with digital tools. This will not only improve usability, but also significantly increase user satisfaction and efficiency.
AI is finally becoming the standard in data retrieval and analytics
AI is becoming even more important in data retrieval, big data analytics and data management. This development establishes AI as an established tool that is essential for processing and analyzing large amounts of data. With advanced algorithms and machine learning, AI will enable companies to gain valuable insights from their data sets more efficiently than ever before. This shift towards AI-powered data analysis will significantly increase both the speed and accuracy of data analysis, providing a crucial competitive advantage in the digital era.
Employee requirement profiles will change
The ongoing integration of AI in various business areas will lead to a significant change in the job profiles of employees. The ability to work effectively with AI systems and make data-driven decisions will become a key skill in many professional fields. Companies will begin to offer comprehensive training programs to prepare their employees for the challenges and opportunities of cross-silo data usage. This development underlines the need for continuous adaptation and training in a fast-paced, technology-driven world of work.
AI experiments will be expensive
This year, the Artificial Intelligence landscape will be a reality for many companies that will be more expensive than originally expected. However, the companies that have already internalized the “Build, Measure, Learn” approach will be able to avoid unnecessary spending and innovate more efficiently. This development emphasizes the importance of a strategic and measurable approach to AI projects in order to minimize risk and maximize return on investment.
Price-to-performance metrics are the most important KPIs
The efficiency of AI applications will play a new key role in the future, with price-to-performance metrics becoming an essential class of key performance indicators (KPIs) for companies. With the increasing use of AI cloud tools based on pay-per-use models, companies will increasingly need to pay attention to how effective their investments in AI technologies are. These metrics will allow organizations to measure and understand the true value of their AI initiatives by weighing costs against benefits achieved. This development reflects a pragmatic approach to AI technologies that emphasizes profitability and efficiency.
AI becomes a matter for the boss
There will be a significant shift in responsibility for AI strategies to the top management of companies. Given the growing risks in areas such as compliance, accountability, cybersecurity and rights management, especially in the context of generative AI, the role of executives will become critical. C-level executives, including CEOs and CTOs, will be increasingly involved in shaping and overseeing AI strategies to ensure they align with corporate goals and regulatory frameworks. This development reflects the realization that AI has not only a technological but also a strategic and ethical component that requires careful governance at the highest level.
However, we are also seeing these trends:
Current exaggerated AI promises will increasingly turn out to be unrealistic. Examples such as the Google Gemini demo, the misguided developments in self-driving cars and the unresolved challenges of general AI make it clear that, despite the progress made in generative AI, major breakthroughs are still a long way off.
The year 2024 will undoubtedly be full of innovations and advancements in the field of artificial intelligence. As we experience the highlights of generative AI and observe its integration into everyday processes, we must remain realistic about the limitations and challenges of this technology. The coming developments promise to be both exciting and challenging, and will have a lasting impact on the landscape of AI.
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