Forrester Research Predicts AI Growth and Challenges in 2024

Forrester Research recently released its highly anticipated 2024 predictions report, outlining the future of artificial intelligence (AI) and addressing the challenges that lie ahead for businesses. One of the key findings of the 38-page report is the need for companies to prepare for a surge in “shadow usage,” as employees increasingly rely on their own AI tools to boost productivity.

Expanding AI Capabilities and Employee Demand

The report forecasts that AI platform budgets will triple in 2024 as companies invest in scalable solutions to build, deploy, and monitor AI models. However, Forrester warns that this investment alone will not be sufficient to meet employee demand. The report predicts that 60% of employees will be using their own AI tools at work, which will present new regulatory and compliance challenges for businesses.

Forrester sees 85% of companies expanding AI capabilities with open-source models like GPT-J and BERT, rather than relying solely on popular proprietary choices like ChatGPT.

In addition, Forrester expects 40% of enterprises to proactively invest in governance for AI compliance, in order to get ahead of upcoming regulations in the EU, U.S., and China. This emphasizes the growing importance of ethical and responsible AI practices.

The Rise of “Hallucination Insurance” and Pragmatic AI Strategies

The report also predicts the introduction of AI “hallucination insurance” by a major insurer in 2024. This type of insurance would cover errors and harms specifically caused by AI mistakes, acknowledging the potential risks associated with AI proliferation.

Overall, the Forrester 2024 Predictions Report highlights the need for businesses to approach AI strategically and not get caught up in the hype. The report emphasizes the importance of developing meaningful AI strategies that capitalize on its emerging potential, while also staying mindful of regulations and risks.

Forrester’s team of analysts states, “Without a doubt, 2023 will go down as the year of AI as we saw the rise of consumerization of generative AI… We predict that 2024 will galvanize enterprise teams to be proactive, develop a meaningful AI strategy, and deliver on the AI promise while keeping an eye on regulations and new risks.”

Key Takeaways from the Report

  • Enterprise leaders must proactively address risks as they expand responsible AI adoption.
  • The Forrester report serves as a roadmap for businesses, technologists, and policymakers to navigate the future of AI, data analytics, and automation.

The report underscores the importance of having a focused AI strategy, especially as generative AI gains popularity in the business world. It serves as a reminder that while the AI revolution holds immense promise, it also brings challenges that need to be addressed strategically in order to maximize the benefits and mitigate potential risks.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts