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The introduction of Chat GPT and other Large Language Models (LLMs), Generative AI (Gen AI) stands out as the dominant conversation in 2023.
“The best way to predict the future is to create it.” This quote is credited to both Abraham Lincoln and Peter Drucker.
The continually evolving need for a focus on Cybersecurity and Data has been highlighted due to GenAI’s unparalleled growth and potential for misuse. In addition, technologies like Extended Reality are now hitting a level of maturity, allowing businesses to improve the customer experience.
As CIOs and their teams begin to adapt their technology portfolios to these new realities, we assessed our work with clients and researched leading voices in the industry to explore the most important trends we believe will impact organizations. Our aim is to help senior executives shape their 2024 priorities and determine how they will use technology to sustain growth and create a technology-driven competitive advantage.
Generative AI is increasingly recognized as a powerful technology catalyst, playing a transformative role across various industries by reshaping processes. Gen AI unlocks new possibilities by taking assistive technology to the next level, reducing application development time, and offering enormous potential to increase productivity by automating activities.
Gen AI can help to build a more empowered workforce, assisting employees to work more effectively and efficiently.
We recommend organizations invest in understanding the technology, provide ongoing education, and navigate the rapidly accelerating landscape of Gen AI which brings huge potential for business improvement.
AI Augmented development has the power to transform software creation by shifting the focus from coding to aligning efforts with strategic goals and measurable outcomes.
With AI's support, the entire software development lifecycle can be streamlined, covering feature definition, code generation, and testing. While this doesn't eliminate the need for software engineers, it envisions a future where the product team creates a functional product for A/B testing, subsequently refined by the engineering team for scalability.
It is crucial to recognize that AI-augmented development goes beyond code writing—it's about aiding developers in constructing impactful software that contributes to organizational success.
Intelligent applications have the potential to revolutionize the structure of work by introducing optimization, advisory services, and decision-support functionalities into the process-centric workflows of enterprise business applications.
These applications utilize a spectrum of advanced AI techniques, including machine learning, natural language processing, and computer vision, to:
A LLM is a sophisticated AI system that has learned from a vast amount of text data. Training enables the AI to understand and then generate responses in conversations and requires:
Regulatory and ethical considerations must be proactively addressed and accompany the development of Gen AI solutions in business. During the design phase, key aspects to address include:
Countries are seeing the need to develop regulations to help manage the impact of AI on society. For example, the European Union (EU) AI Act aims to regulate AI as part of its digital strategy for improved development and utilization. AI offers various benefits, including enhanced healthcare, safer transport, efficient manufacturing, and sustainable energy. In April 2021, the European Commission introduced the first AI regulatory framework, categorizing AI systems based on their risk levels, with corresponding levels of regulation.
Cybersecurity remains a key concern for organizations in 2024. Security resilience is confronting a new world where everyone and everything is connected. Businesses are operating as integrated ecosystems with boundaries between the corporations, customers, suppliers and partners all blurring. Key trends to watch for:
Because of an increase in cyber-attacks and continuously evolving global regulations such as the Digital Operational Resilience Act (DORA), organizations are increasingly concerned with data privacy and regulatory compliance. CIOs need to ensure compliance with data protection regulations and avoid potential legal and/or reputational damage.
Gen AI is driving a greater need for data, making data an even more critical asset.
Helping to address environmental concerns, a paradigm shift is taking place in favour of sustainable technologies. This shift involves a new approach to the IT lifecycles of services from design to disposal. As such, sustainable technology must become a key factor in corporate strategy and management responsibility.
Extended Reality solutions can reduce costs, increase revenue and productivity, and improve employee and customer experience. CIOs should consider adopting Extended Reality to unlock new business value and create new content and services. As the world continues to become more virtual, Extended Reality will play an even larger role in our personal and professional interactions. Examples include augmented reality training and the creation of unique customer interfaces.
By 2024, it is estimated that Blockchain will reduce bank infrastructure costs by $15-20 billion annually. CIOs should investigate how Blockchain can provide end-to-end visibility, reducing fraud and errors. Additionally, decentralized finance (DeFi) applications are gaining traction with an estimated $200 billion in value to be unlocked. Firms are turning to Blockchain to replace slow, centralized, and less secure systems.
Web3 is a fundamental development in digital technology that blends Extended Reality and Blockchain capabilities to improve the user experience, safeguard personal data, and allow users to own and govern their assets. By increasing interactions and delivering customized experiences, Web3 will unlock opportunities for improved communication, entertainment, and business development.
“When digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar”
George Westerman, MIT Sloan Initiative on the Digital Economy
Sia Partners works with organizations across the globe. In an increasingly connected world where businesses are global and operating 24/7 in multiple eco-systems, we believe the IT organization is uniquely placed to offer a strategy to leverage opportunities offered by new technologies to create competitive advantage, enable higher productivity, enhance the customer experience, and positively impact the bottom line.
Organizations cannot risk standing still. We recommend CIOs carefully review these key trends and work with their stakeholders to determine how these trends can unlock additional value for your organization.
How are cybersecurity and data highlighted in the context of GenAI's growth?
GenAI's growth underscores the increasing need for cybersecurity measures and responsible data usage due to its potential for misuse and the generation of synthetic data.
What role does Extended Reality play in improving customer experience for businesses?
Extended Reality enhances customer experience by offering immersive and interactive experiences, such as augmented reality training and unique customer interfaces.
What is Generative AI, and how does it impact various industries?
Generative AI creates synthetic data and content, transforming processes across industries by enhancing productivity, automating activities, and enabling new possibilities.
What are some specific applications of Generative AI, such as image generation and data visualization?
Generative AI applications include text-based questioning, chat functionalities, image generation, image description, and data visualization.
How does Gen AI empower the workforce, and what benefits does it offer to organizations?
Gen AI empowers employees by suggesting code updates, drafting marketing campaigns, expediting training, and enabling middle managers to focus on high-value leadership tasks.
What is AI Augmented Development, and how does it transform software creation processes?
AI Augmented Development shifts the focus from coding to aligning efforts with strategic goals and measurable outcomes, streamlining the software development lifecycle and aiding in constructing impactful software.
How do Intelligent Applications utilize advanced AI techniques to revolutionize workflows?
Intelligent Applications utilize machine learning, natural language processing, and computer vision to analyze data, make predictions, and automate tasks, revolutionizing enterprise workflows.
What are Large Language Models (LLMs), and what are their key components?
LLMs are advanced AI systems trained on vast textual datasets, utilizing transformers and attention mechanisms to predict the next word in a sentence.
What are the key aspects of responsible AI development that organizations need to address?
Key aspects include clarifying consent for personal data, assessing intellectual property rights, evaluating risks associated with inaccurate information generation, and understanding potential ethical concerns.
How are AI-focused regulations evolving globally, and what impact do they have on businesses?
AI-focused regulations aim to manage the impact of AI on society, with initiatives like the EU AI Act categorizing AI systems based on risk levels and corresponding levels of regulation.
What are the key trends in cybersecurity for 2024, such as AI-driven threat detection and incident response planning?
Key trends include AI-driven threat detection, continuous threat exposure management (CTEM), incident response planning, and system hardening to mitigate cyber risks.
Why are data privacy and regulatory compliance increasingly important for organizations, and how does Gen AI contribute to these concerns?
Organizations face increasing cyber threats and regulatory pressures, making data privacy and compliance crucial. Gen AI contributes by requiring high-quality data for training, leading to enhanced data privacy practices.
What are some best practices for evaluating data availability and quality for Gen AI training?
Best practices include assessing the quality and quantity of available data, cleansing data to eliminate noise, augmenting data when necessary, and encoding data in suitable formats for training.
How have sustainable technologies evolved and become integrated into corporate strategies?
Sustainable technologies have become integrated into corporate strategies through improved energy efficiency, responsible IT practices, and considerations for economic and social viability throughout the technology lifecycle.
What role do Extended Reality solutions play in reducing costs and improving productivity?
Extended Reality solutions reduce costs and improve productivity by offering immersive training experiences, enhancing customer interactions, and enabling new content and services.
What potential benefits does Blockchain offer for reducing infrastructure costs and enhancing visibility in banking?
Blockchain reduces infrastructure costs by providing end-to-end visibility, reducing fraud and errors, and enabling decentralized finance applications to unlock significant value.
How does Web3 combine Extended Reality and Blockchain capabilities to improve user experiences and asset ownership?
Web3 combines Extended Reality and Blockchain to improve user experiences, safeguard personal data, and enable users to own and govern their assets, unlocking opportunities for improved communication, entertainment, and business development.
What are some estimated impacts or predictions for the adoption of Blockchain and Web3 technologies by 2024?
By 2024, Blockchain is estimated to significantly reduce bank infrastructure costs and unlock value in decentralized finance applications. Web3 technologies are expected to revolutionize digital interactions and create new opportunities for businesses and users alike.