State of the Generative AI Market Report 2024
It has been almost two years since generative AI (GenAI) emerged with force onto the technology landscape, and two things are now clear.
From selecting the right use cases through introducing robust orchestration to reduce risks, AI adoption at an enterprise scale can't be done in a silo. To get the leapfrog benefits of AI, you need the talent, tools and expertise of services and software providers. But knowing which provider(s) to rely on, how to build the contract and what's needed to ensure the results meet your expectations takes something extra.
That's where ISG comes in. We're independent sourcing experts who know the intricacies of AI adoption and the software and IT services market.
The success of AI adoption relies on creating robust organizational and governance structures that accelerate AI adoption while managing risks. Cognitive infrastructures incorporating hybrid cloud, security, privacy, intelligent edge, and purpose-built AI solutions are changing the IT landscape, making technology adoption more difficult. Integrating model-aware computing is crucial for optimized AI performance and responsiveness. We help you select the right use cases and build the business case to accelerate adoption.
GenAI has dramatically changed the delivery of core services. Your current partners may excel in various areas, but they might not be invested in AI or passing those savings to you. Our specialized research and proven methodology identify the true savings potential and partners that align with your AI needs. This strategic approach ensures you collaborate with the right experts who can drive your AI initiatives to success.
To fully realize the potential of your AI investment, ISG offers a comprehensive suite of services, including organizational change management, a strategy realization office, and robust orchestration across your AI environment. These elements ensure effective risk mitigation and governance, guiding your journey from initial implementation to sustainable, large-scale AI integration. Our approach ensures that AI becomes a mainstream component of your operations, delivering continuous value and innovation.
The market is rapidly evolving, with some use cases beginning to provide ROI in 2024 and 2025. But enterprises also face big challenges in integrating GenAI solutions into their existing workflows, ensuring data quality and managing costs. ISG is providing a full, complimentary report on the AI market current state and trends to help you make your GenAI moves count.
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Learn MoreGenerative AI (GenAI) software can transform various aspects of enterprise operations, which makes it a critical component of modern business strategies. GenAI tools can automate repetitive tasks such as data entry, report generation and customer interactions. GenAI can improve overall operational efficiency, resulting in time and cost savings for the organization. Another benefit from GenAI software is the ability to analyze vast amounts of data and extract actionable insights, enhancing decision-making processes. This empowers the workforce to make informed decisions quicker. Utilizing GenAI in customer service and support can lead to more personalized and responsive interactions. By analyzing customer behavior and preferences, companies can tailor offerings and communications, resulting in enhanced customer satisfaction and loyalty.
Artificial intelligence-enabled business applications have advanced considerably over the past year as software providers have added a steady stream of capabilities. This includes customer facing, financial, supply chain and workforce software. ISG Research asserts that by 2027, almost all providers of business applications will use some form of generative AI to enhance capabilities and functionality to remain competitive.
Artificial intelligence governance is a concern for many enterprises. In our recent ISG Market Lens study on generative AI, 39% of participants cited data privacy and security among the biggest inhibitors to adopting AI. Nearly a third (32%) identified performance and quality (e.g., erroneous results), and an equal amount (32%) mentioned legal risk.
The artificial intelligence and machine learning landscape was profoundly altered by the emergence of generative AI into the mainstream consciousness during 2023. The widespread availability of GenAI models and cloud services has lowered the barriers to individuals and enterprises engaging with AI for various use cases, including generating content, querying data, writing code, preparing data for analysis, documenting data pipelines and using software products more effectively.
Embracing artificial intelligence technologies opens doors for innovation and efficiency. Alongside these opportunities, however, come risks. Threat actors are keenly aware of the potential impact of AI systems and are actively exploring ways to manipulate them. In this Analyst Perspective, I explore the world of adversarial machine-learning threats and provide practical guidance for securing AI systems.