Businesses prepare for the impact of generative AI: report

As the boundaries of technological possibilities expand and the implications become more pronounced, businesses and their legal departments and technology leaders are preparing for the latest developments in generative AI.

To prepare businesses for what's to come in 2024, the London, Ontario based global IT research and advisory firm Info-Tech Research Group has released its annual technology report: Tech Trends 2024. The report includes insights from 15 countries and regions spanning North and South America, Europe, and the APAC region.

The report highlights six pivotal AI-centric trends set to define businesses during the coming year:

AI-Driven Business Models 

Of companies choosing to invest in AI before the end of 2024, 66 percent expect AI to positively impact their company, compared to 38 percent of companies not investing in AI. Only three percent feel they face an existential threat from AI.

AI adopters have said they will use AI in several strategic areas by the end of 2024: 77 percent for business analytics and intelligence and 71 percent to identify risks and improve security. AI will define business strategy by the end of 2024, according to 68 percent of survey respondents.

Autonomized Back Office 

The report reveals that 47 percent of respondents are keen to adopt new generative AI features from major vendors either in beta access (17 percent) or when generally available (30 percent). The other half are still more cautious, with 37 percent needing more information before deciding and 16 percent holding off on the features until other organizations test them.

When asked what type of operational tasks organizations are most interested in using AI for, 33 percent say they already use AI to automate repetitive, low-level tasks, and 45 percent say they plan to do so in 2024.

Spacial Computing

AI adopters are 42 percent more interested in using a generative AI-based interface than companies that are not yet using AI. The report also shows that organizations invested in or planning investment in AI are more likely to be adopters of mixed reality, but most of that investment is still over the horizon after 2024.

Responsible AI 

One in three AI adopters say that the CIO will be responsible for the governance of AI. Another 17 percent say that a committee or work group will be accountable, and another 10 percent say responsibility shared between two or more executives – either of these groups could also include the CIO. For one in five adopters, nobody is responsible for AI governance yet.

Security by Design 

The majority of organizations aim to spend more on cybersecurity in 2024, with more than one in six organizations planning to increase their cybersecurity budget by more than 10 percent. AI Adopters rate security awareness and training of their own staff as the most critical area to invest in, rating it an importance of 4.3/5 on average.

Digital Sovereignty 

As courts and lawmakers catch up with the new capabilities of generative AI, organizations are questioning how to protect their data and key aspects of their digital identity, incentivizing them to set up infrastructure and deploy protections that preserve their digital sovereignty and prevent third-party AIs from training on their data.

"Our 2023 report highlighted generative AI as a trend that would impact every industry. Not only was that true, but the impact was tremendous and is still reverberating through society," said Brian Jackson, principal research director and research lead for the 2024 Tech Trends report. "In our Tech Trends 2024 report, we're doing a deep dive into the generative enterprise and examining the full breadth of implications ahead of organizations as a result of generative AI's disruptive effects. There are significant opportunities for technology leaders to consider and seize, including creating new revenue-generating business models or optimizing existing operations. There are also severe risks to mitigate, ranging from new regulatory activity to protecting intellectual property."

The Tech Trends 2024 report is informed by the firm's recent Future of IT survey, which includes data from 848 industry professionals in IT or those directing IT functions. Perspectives captured encompass 16 industries, including government, professional services, manufacturing, education, healthcare, financial services, telecom, and the retail sector.