According to 2023 research, most people are concerned about the implications of generative AI on data security, ethics and bias. In fact, 81% of customers want a human to be in the loop to review and validate generative AI output.
Only 37% of customers trust AI’s output to be as accurate as an employee’s. The research found that the trust gap widens as artificial intelligence becomes mainstream. Brands are turning to generative artificial intelligence to increase efficiency while improving customer engagement. Customers – wary of technological risks – demand a thoughtful approach built on trust. Eighty percent of customers say it’s important for humans to validate AI’s output.
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Demystifying artificial intelligence can significantly reduce the fear surrounding it. If we can move AI from an opaque black box to a transparent glass cube, we can recalibrate how we use the technology. A strong case can be made that any basic AI model should have a FICO score.
The latest State of IT 2023 report from Salesforce, a survey of 4,300 IT decision makers and managers, found that 9 out of 10 CIOs believe that generative AI has gone mainstream. The report found that artificial intelligence and automation support efficiency and innovation. Process automation is on the rise as companies tighten their belts and seek efficiency gains, while advances in artificial intelligence are forcing IT to decide how — not if — to responsibly drive their organizations forward. 86 percent of IT managers believe that generative artificial intelligence will play a prominent role in their organizations in the near future.
According to McKinsey, 50% of organizations used AI by 2022. IDC predicts that global AI consumption will increase by a staggering 26.9% in 2023 alone. A recent survey of customer service professionals found that the use of artificial intelligence had increased by 88% between 2020 and 2022.
McKinsey’s latest research estimates that generative artificial intelligence could add the equivalent of $2.6 trillion to $4.4 trillion annually across 63 use cases. Generative artificial intelligence will revolutionize the way we work.
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AI is the electricity of the 21st century. Ignore it and your business will be left in the dark. After all, we already know many ways that generative AI will shape how we work.
A study suggests that AI has the potential to automate 40% of the average workday, according to research firm Valoir. The widespread use of generative artificial intelligence has raised public awareness of its ability to increase productivity and efficiency, as well as its risks.
So what are the biggest and most influential technology analyst firms saying about the impact of generative AI on the future of work and business? According to Gartner, generative artificial intelligence will have an increasingly large impact on businesses over the next five years. Gartner predicts that:
- By 2024, 40% of enterprise applications will have embedded conversational AI, up from less than 5% in 2020.
- By 2025, 30% of companies will have implemented an AI-enhanced development and testing strategy, up from 5% in 2021.
- By 2026, generative design AI will automate 60% of design efforts for new websites and mobile apps.
- By 2026, over 100 million people will engage robo-colleagues to contribute to their work.
- By 2027, almost 15% of new applications will be automatically generated by AI without a human in the loop, which is not happening at all today.
- More than 55% of all deep neural network data analysis will occur at the capture point in an edge system by 2025, up from less than 10% in 2021.
Generative AI is positioned at the peak of inflated expectations on the Gartner Hype Cycle for Emerging Technologies, 2023.
IDC believes that the technology industry is at a defining moment. Never have we seen a technology emerge with so much management support, clearly defined business outcomes and rapid adoption. IDC has identified three broad types of generative AI use cases to assess, which are industry specific, business function and productivity related.
IDC notes that business could see a seismic shift with the advent of generative AI. IDC advises business leaders to start with the following solid foundation:
- Responsible AI Policy – A well-defined AI policy outlining the principles of fairness, transparency, accountability and data protection is paramount.
- AI strategy and roadmap and role of proof of concept – The AI strategy should include the rules or guidelines for generative AI proofs of concept (POCs), and it should incorporate the results of the POCs to recursively improve the strategy.
- Intelligent architecture – Data privacy, security and protection of intellectual property must also be embedded in this platform architecture.
- Re-skilling and training – Most organizations do not have mature skill sets (rapid engineering, data science, data analytics, AI ethics, modeling) required to take full advantage of generative AI.
IDC also notes that data serves as the foundation for generative AI. When IDC surveyed customers about their data, troubling results were revealed.
Code generation, enterprise content management, marketing and customer experience applications are some of the key areas for generative AI use cases in the enterprise, per IDC.
Forrester research points to the next generation of modern software development, where generative AI TuringBots accelerate and improve software development. Forrester defines TuringBots as: AI-powered software that empowers application development and infrastructure and operations teams’ automation and semi-autonomous capabilities to plan, analyze, design, code, test, deliver and deploy while providing assistive intelligence about code, development processes and applications.
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Forrester predicts that TuringBots will write 10% of worldwide code and testing. Here are additional Forrester generative AI predictions for the enterprise:
- One in four tech execs will report to their board on AI governance. Forrester’s data shows that 46% of data and analytics business and technology decision makers are looking for partners to implement business-critical AI.
- Ten percent of Fortune 500 companies will generate content with AI tools.
Generative AI dominated the top 10 emerging technologies in the 2023 report from Forrester. The research notes that generative artificial intelligence will strain most companies’ ability to take risks and make good bets on new technology. Forrester research on the impact of generative AI on marketing notes the benefits of scale and precision for marketing. The research identifies the following benefits: 1. strengthening human intuition with intelligence; 2. to enhance the work of the creators; and 3. add scale and speed to creative quality.
Constellation Research believes that generative artificial intelligence will hand over the work of the future. The research notes that many workloads will benefit from between a 1.3x to 5x gain in speed alone. Constellation research advice on adopting generative AI in the digital workplace is to have the following:
- Clear AI guidelines and policies
- Education and training
- AI governance structures
- Supervision and monitoring
- Collaboration and feedback
- Create clear ethical guidelines
- Conduct ethical impact assessments
- Monitor for AI bias
- Ensure transparency
- Ensure compliance with regulations
Constellation also provides a list of the leading enterprise-grade generative AI solutions. Constellation also breaks down the impact of generative AI by industry. For the education industry, Constellation notes that Generative AI, which initially seems to be loved by students and loathed by educators, is coming to education as its embedded in course materials as well as learning management systems. The overall forecasts are optimistic, but there are cautionary notes about guardrails for AI.
Ventana Research highlights how generative artificial intelligence is helping sales and marketing in practical ways. Ventana notes, “For marketing, one way this will happen is by improving the effectiveness of marketing copy and potentially enabling personalization at scale. For field sales, the suggestions are that generative AI will improve both sales’ ability to craft emails for outreach and responses and to improve presentations. Other uses include using generative AI to automatically summarize calls and send them to the appropriate opportunity record, improving both accuracy and timeliness. This will have positive effects on sales productivity, but in itself will represent less of a revolution than an evolution.”
By 2025, more than a quarter of sales organizations will use generative AI to automatically summarize meetings, personalize outreach at scale, and generate tailored sales opportunities to improve sales productivity and allow more time for direct sales engagement to improve win rates, according to Ventana. The use of artificial intelligence to drive automation and increase efficiency is another example of intelligent automation as a powerful tool for CIOs.
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I will be attending the biggest AI conference in the world, Salesforce Dreamforce, from the 12th-14th. September. I will be meeting with technology analysts from all of the above institutions and more to learn more about their latest views on the data revolution, generative AI market trends and use-case forecasts for the next 12-18 months. I will capture and follow up with updates on the impact of generative AI on the future of work and business.