SAS has shared predictions and key developments in AI for 2024 in its report, ‘Accelerating Digital Efficiency With The AI Multiplier’. The report is based on survey responses from 100 digital business leaders across European enterprises.
The study reveals that only a small fraction of businesses are meeting their digital transformation targets,
even though technology budgets have increased. Approximately six out of 10 (59%) organisations reported budget increases in 2023, with further investment expected in 2024. Yet, there is growing pressure to deliver operational improvements and financial returns.
To maximise their technology budgets, 91% of businesses acknowledge the need to enhance efficiency across their technology operations. Key areas identified for improvements include IT and data strategies, data management, customer operations and service platforms, cyber security, and eCommerce and payment platforms.
The report highlights AI, particularly generative AI, as key to driving efficiency improvements, with 80% of respondents expecting a positive impact from this technology. Generative AI is set to be a major focus for investment, with 76% of businesses either currently using it or planning to do so in the next 12-18 months.
Shadow AI will challenge CIOs
“CIOs have struggled with ‘shadow IT’ in the past and will now confront ‘shadow AI’ – solutions used by or developed within an organisation without official sanction or monitoring by IT. Well-intentioned employees will continue to use generative AI tools to increase productivity. And CIOs will wrestle daily with how much to embrace these generative AI tools and what guardrails should be put in place to safeguard their organisations from associated risks,” said Jay Upchurch, Chief Information Officer, SAS.
Multimodal AI and AI simulation will reach new frontiers
“The integration of text, images and audio into a single model is the next frontier of generative AI. Known as multimodal AI, it can process a diverse range of inputs simultaneously, enabling more context-aware applications for effective decision making. An example of this will be the generation of 3D objects, environments and spatial data. This will have applications in augmented reality [AR], virtual reality [VR], and the simulation of complex physical systems such as digital twins,” said Marinela Profi, AI/Generative AI Strategy Advisor, SAS.
Digital-twin adoption will accelerate
“Technologies like AI and IoT analytics drive important sectors of the economy, including manufacturing, energy and government. Workers on the factory floor and in the executive suite use these technologies to transform huge volumes of data into better, faster decisions. In 2024, the adoption of AI and IoT analytics will accelerate through broader use of digital-twin technologies, which analyse real-time sensor and operational data and create duplicates of complex systems like factories, smart cities and energy grids. With digital twins, organisations can optimise operations, improve product quality, enhance safety, increase reliability and reduce emissions,” said Jason Mann, Vice President of IoT, SAS.
Insurers will confront climate risk, aided by AI
“After decades of anticipation, climate change has transformed from speculative menace to genuine threat. Global insured losses from natural disasters surpassed $130 billion in 2022, and insurers worldwide are feeling the squeeze. US insurers, for example, are under scrutiny for raising premiums and withdrawing from hard-hit states like California and Florida, leaving tens of millions of consumers in the lurch. To survive this crisis, insurers will increasingly adopt AI to tap the potential of their immense data stores to shore up liquidity and be competitive. Beyond the gains they realise in dynamic premium pricing and risk assessment, AI will help them automate and enhance claims processing, fraud detection, customer service and more,” said Troy Haines, Senior Vice President of Risk Research and Quantitative Solutions, SAS.
AI importance will grow in government
“The workforce implications of AI will start being felt in government. Governments have a hard time attracting and retaining AI talent since experts command such high salaries, however, they will aggressively recruit for expertise to support regulatory actions. And like enterprises, governments will also increasingly turn to AI and analytics to boost productivity, automate menial tasks and mitigate that talent shortage,” said Reggie Townsend, Vice President of the SAS Data Ethics Practice.
Generative AI will bolster patient care
“To advance health and improve patient and member experiences, organisations will further develop generative AI-powered tools in 2024 for personalised medicine, such as the creation of patient-specific avatars for use in clinical trials and the generation of individualised treatment plans. Additionally, we will see the emergence of generative AI-based systems for clinical decision support, delivering real-time guidance to payers, providers and pharmaceutical organisations,” said Steve Kearney, Global Medical Director, SAS
Deliberate AI deployment will make or break insurers
“In 2024, one of the top 100 global insurers will go out of business as a consequence of deploying generative AI too quickly. Right now, insurers are rolling out autonomous systems at breakneck speed with no tailoring to their business models. They’re hoping that using AI to crunch through claims quickly will offset the last few years of poor business results. But after 2023’s layoffs, remaining staff will be spread too thin to enact the necessary oversight to deploy AI ethically and at scale. The myth of AI as a cure-all will trigger tens of thousands of faulty business decisions that will lead to a corporate collapse, which may irreparably damage consumer and regulator trust,” said Franklin Manchester, Global Insurance Strategic Advisor, SAS.
Public health will get an AI boost from academia
“Public health is achieving technologic modernisation at an unprecedented rate. Whether overdoses or flu surveillance, using data to anticipate public health interventions is essential. Forecasting and modeling are rapidly becoming the cornerstone of public health work, but government needs help. Enter academia. We will see an increase in academic researchers carrying out AI-driven modeling and forecasting on behalf of government. It is clear after COVID-19 that the protection of our population will require exceptional technology and collaboration,” said Dr. Meghan Schaeffer, National Public Health Advisor and Epidemiologist, SAS.
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