As we approach 2024, the business landscape is poised for a transformative journey with generative AI emerging as a pivotal technological breakthrough, akin to the revolutionary advent of the internet. Forrester offers a comprehensive overview of what lies ahead, exploring various trends shaping the business world, from technology and innovation to B2B marketing, sales, product development, and customer experience.
Key predictions for 2024 are:
1. Enterprise AI initiatives will enhance productivity and creative problem-solving by 50%.
Generative AI is set to revolutionize IT operations, with reported improvements of up to 40% in software development tasks. Visionary tech leaders will strategically reallocate resources to unlock creative potential across all IT roles, leading to a 50% increase in time for creative problem-solving. This shift will drive customer-centric innovation and deliver unprecedented business value through enhanced products and services.
2. Agencies are set to heavily invest in “brand-specific” AI models.
In 2024, agencies will make substantial investments in creating tailored AI solutions for enterprises. These solutions will be crafted using foundational AI models, audience insights, creative intelligence, first-party client data, and brand standards. The top 10 agencies are projected to collectively invest $50 million in partnerships to construct these custom AI solutions for their enterprise clients.
3. AI processing is expected to face limitations in 2024.
The surge in AI adoption has strained GPU and chip production to its maximum capacity. Limited chip manufacturing capabilities will result in a slowdown in AI processing by 2024. Businesses are expected to take a practical approach to AI, based on chip availability, economic considerations, and sustainability. Forrester forecasts that these hardware constraints will temper ambitions, compelling organizations to prioritize applications with clear ROI, adjusting their AI strategies accordingly.
4. Cloud providers will introduce prompt engineering services, but to no avail.
In 2024, all major hyperscale platforms are expected to unveil prompt engineering capabilities, filling a critical gap in their data science toolkit. To bolster this, about 80% of them will bring in prompt engineering expertise internally, leveraging business SMEs and data scientists. This shift is driven by the recognition that first-generation prompt engineering services from cloud providers lack the necessary depth for addressing tailored, nuanced needs due to limited contextual data and expertise in natural language processing.
5. Generative AI will enhance the capabilities of customer service agents.
In 2024, a major improvement will come from using advanced AI behind the scenes, making customer service agents even better. This will help them respond faster and more accurately, fix problems right away, communicate clearly, and treat customers with respect. To ensure that these new technologies align with the company’s customer experience (CX) strategy, CX leaders should oversee the design, implementation, and evaluation of reimagined customer service experiences.
6. B2B buying preferences will be influenced by generational differences.
In 2024, buyers between the ages of 25 and 44 will constitute 75% of business purchasing teams. According to Forrester, these buyers place a higher value on face-to-face interactions with product experts compared to other in-person activities. An estimated 40% of younger buyers consider meetings with product experts as their most meaningful personal interactions.
7. Europe will lead in the adoption of hybrid work practices.
In 2024, Europe is projected to surpass the US in embracing flexible work arrangements, with an estimated 40% of Europeans working remotely on occasion. Forrester anticipates further implementation of flexible work laws in the UK and the EU next year.
8. APAC firms will struggle to implement customer trust strategies.
By the end of 2024, it is estimated that 25% of the largest companies in APAC will publicly express their strategic dedication to customer trust. However, only 5% of these companies will successfully formalize this commitment by implementing measurement techniques and organizational Key Performance Indicators (KPIs).
The business and technology space is poised for significant transformations driven by generative AI. In 2024, it will be imperative for businesses to stay agile, prioritize innovation, and leverage emerging technologies to stay ahead in this dynamic and competitive landscape.