10 GenAI trends to watch in 2024

1. A year of acceleration

Those new to GenAI had better get up to speed because this technology shows no sign of slowing down.

“This year, the GenAI foundation models race will heat up with the launch of Gemini before February and GPT-5 surpassing it by March.” We’ll also see substantial improvements to open-source offerings and their AI models, which will come close to GPT-4’s capabilities. 2024 will also bring the rise of customizable AI agents that simplify task automation, decision-making, and information retrieval for everyday users.”

Srikanth Velamakanni

Co-founder, group chief executive, and vice chairman, Fractal

Meanwhile, foundation models that can work across various tasks and problems will continue to challenge domain-specific ones – although Velamakanni foresees that hybrid approaches will remain valuable.

“We’re right at the start of development for GenAI and it’s already clear that it’s a powerful tool for enhancing productivity,” comments Charles Allen, senior advisor, digital operations at asset management firm TPG Global. “Other technologies, such as blockchain and quantum computing, are attracting interest among governments and financial institutions, but these will take a few years to establish. GenAI is moving faster. In the next 12 months, we’ll see all kinds of use cases related to its reading, writing, research, and language processing capabilities.”

2. 85% expertise; 100% productivity

GenAI’s productivity-boosting abilities are already big news. That journey will continue, making huge impacts in areas where the pool of human expertise struggles to meet demand.

“GenAI will help to democratize information in a wide array of regulated, licensed, and knowledge-intensive fields.” “That could be a doctor using Qure.ai to read medical scans so they can treat more patients and start them on their treatment paths sooner. A procurement specialist might use GenAI to negotiate and amend vendor contracts, reducing onboarding time from weeks to days. Or it could be an insurer who uses the technology to dramatically cut the time it takes to adjust product details and documentation in line with regulations.”“Wherever 85% of the specialist’s expertise is enough, GenAI can increase the speed and efficiency of human experts so they can handle much more volume, more effectively.”

Himanshu Nautiyal

Chief product officer, Fractal

Economic factors will drive this trend as organizations focus on maximizing the value of their investments. 

“In 2024, ‘do more with less’ will be the driving force for enterprises,” says Vishal Gupta, vice president of research firm Everest Group. “Amidst the uncertain global macroeconomic situation, enterprises will prioritize prudent technology investments – data, AI and cloud will be key for unlocking greater value.”

3. A new age of creativity

Product developers will see a new age of creativity dawn. As GenAI-powered productivity gains compress the development cycle, designers will be free to iterate more, test user feedback, and discover the products that make a difference for their customers.

“In the grand tapestry of our collective destiny, AI emerges as a new brushstroke, transforming our future’s canvas.” “Our ability to blend humanity with artificial minds will create a new precedent for what we understand and how we innovate. It will feel nearly limitless and, at times, unnerving.”

Terri Bresenham

Co-founder, Forte Health Advisors

Results are already being seen in areas like IT operations, as organizations use GenAI to build on the past decade’s IT investments.

“Current projects already cite improvements of up to 40% in software development tasks.” “Visionary tech executives will seize this as an opportunity to strategically realign IT resources to unlock the immense creative potential within their teams – not just among developers but across all IT roles. They will leverage this AI moment to create an environment that promotes innovation, interdisciplinary teamwork, continuous learning, and alignment with the broader business strategy.”

Sharyn Leaver

Chief research officer, Forrester

“This shift in focus will free up to 50% more time for employees to engage in creative problem-solving, driving customer-centric innovation and creating unprecedented business value. Businesses will benefit as their tech teams provide products and services that deliver better, more innovative customer experiences. Behold the age of creativity!”

4. As confidence grows, adoption will flow

Three key areas will drive the adoption of GenAI this year, states Allen at TPG Global.

“First, existing providers, particularly software providers, will enhance their products with GenAI capabilities,” Allen explains. “As well as making it easier for companies to purchase it, that will also give people confidence that the technology has been well vetted.”

“In addition, companies in all industries will experiment to find how they can use GenAI to boost productivity, whether in contact centers, engineering development teams, research, or marketing functions. For instance, if GenAI can digest vast amounts of internal and external data, it could allow analysts to spend more time reviewing research insights instead of processing the raw information.”

“Finally, we’re clearly in a very innovative phase with GenAI technology. Just like the early days of the web, we’ll see the emergence of new players, business models, and solutions that take advantage of GenAI capabilities and result in whole new areas of value creation.”

Charles Allen

Senior Advisor, Digital Operations at Asset Management Firm, TPG Global

Vishal Gupta, vice president of research firm Everest Group, predicts a shift in the focus of GenAI projects as data modernization efforts help organizations to enable the technology. “Enterprises will pivot from numerous pilots to a few successful production-level GenAI applications to unlock greater return from their investments. They will also focus more on upgrading their traditional data stacks to support GenAI use cases, with data quality, reliability and security being the prime focus.”

5. Enterprises set the trends

To see GenAI’s direction of travel, look at the world’s biggest enterprises. As adoption grows among these leading firms, it will also shape how others apply the technology.

“Over 80% of Fortune 100 companies will implement GenAI-infused use cases, as risks related to privacy and compliance get mitigated.” “Powered by GenAI, enterprise search, and website search experience will improve substantially. Business intelligence and knowledge management will offer insights, predictions, and recommendations. The near-universal adoption of these tools will boost productivity by approximately 30% in coding tasks, and AI automation will eclipse traditional robotic process automation platforms.”

Srikanth Velamakanni

Co-founder, group chief executive, and vice chairman, Fractal

6. A responsible AI revolution

As a young technology, the ethics surrounding GenAI will be a central focus throughout 2024.

“Ethical considerations play a pivotal role in shaping technology’s impact on society, and in the era of GenAI, consumers, and enterprises will demand that they are an integral part of system design.” “Designers will focus on transparency, fairness, and responsible use of AI to address concerns like algorithmic bias and user privacy. Prioritizing explainability ensures users can comprehend how AI systems make decisions. As GenAI progresses, it’s vital to establish and adhere to ethical guidelines that prioritize user well-being, uphold privacy standards, and mitigate unintended consequences. Doing so fosters trust in the relationship between users and intelligent systems.”

Raj Aradhyula

Chief design officer, Fractal

Groundbreaking approaches to challenges like security, data privacy, and transparency are likely this year.

“I expect increased scrutiny of algorithms for bias and discrimination, and rapid progress of ‘explainable AI’ that ensures transparency in decision-making as well as responsible consumption.”

Sankar Narayanan

Chief practice officer of technology, media, entertainment, and insurance, Fractal

“One result will be a ‘cybersecurity meets blockchain’ approach. Speedy progress on GenAI agents will likely increase potential cyber risks at the enterprise level. Expect to see decentralized security solutions gaining traction, offering businesses and individuals greater control over their data.”

These efforts will play alongside the regulatory spotlight that is shining on AI. “In 2024 regulators will place greater emphasis on bringing AI’s development and implementation under a regulatory umbrella,” notes Gupta. “This will drive enterprises to infuse legal expertise within AI teams.”

7. GenAI will touch everyone

While some consumers are skeptical about GenAI’s impact, that doesn’t mean they won’t be using the technology. For example, avoiding it across media and entertainment formats will be difficult.

“Anticipating the 2024 US elections, major social media and news platforms will introduce advanced AI-generated/fake content detection tools,” Velamakanni says. “Text-to-video, image upscaling, and image-to-video technologies will become mainstream, revolutionizing training videos and content creation. In addition, we can expect to see at least one AI-generated idea, screenplay, and, eventually, a movie. A new ecosystem will also emerge, reminiscent of the Google Play or Apple App Store, encouraging the use of foundation models by content creators and app developers.”

As a result, even GenAI skeptics will likely enjoy some interaction with it this year. 

“Consumers worry about GenAI’s ethics and human impact,” Leaver observes. “For instance, 50% of US and 43% of French online adults who have heard of AI say that GenAI poses a threat to society, and that number won’t decrease anytime soon. Yet a vast majority – 60% – of these skeptics will use (and love!) GenAI during 2024, whether they know it or not. Tech companies are embedding GenAI capabilities in their platforms and tools and in the apps and products people use daily, so GenAI will seep into peoples’ lives seamlessly and invisibly.”

Sharyn Leaver

Chief research officer, Forrester

Meanwhile, GenAI fans will find ever more engaging experiences.

“We are progressing towards a fundamental phygital world,” Narayanan comments. “Forget metaverse hype, Gen Z craves ‘in-real-life’ experiences enhanced by tech. As a tech-savvy consumer, I expect to see augmented reality shopping sprees and AI-powered escape rooms.”

8. An apex of human-AI collaboration

Collaboration between people and AI will reach new levels thanks to behavioral science-led design.

“By combining insights from behavioral science with the principles of design, organizations will be able to create GenAI solutions that respect human cognitive limitations and biases,” Aradhyula explains. “This will enhance the quality of decisions and the overall decision-making experience.”

GenAI’s ubiquity will bring big developments.

“Human-AI collaboration will be at its peak,” Aradhyula predicts. “Engineers and designers will come together more intentionally to envision and create interfaces that facilitate effective collaboration between humans and AI systems. This involves understanding the strengths and limitations of both humans and AI and designing workflows that leverage the complementary capabilities of each.

Raj Aradhyula

Chief design officer, Fractal

“We’ll also see more inclusive systems that prioritize accessibility. By leveraging behavioral science insights, designers will ensure that interfaces align with diverse user behaviors and preferences. GenAI’s personalization capabilities further enhance accessibility by adapting interfaces to individual needs. This integrated approach advances technological sophistication and fosters a more user-centric, accessible, and inclusive digital environment.”

9. An AI-fueled talent rush

GenAI’s power to boost productivity, especially in sectors that rely on repetitive cognitive and creative skills, will enable business growth without corresponding job creation. But that doesn’t mean humans will be automated out of work.

This technology is designed to enhance human expertise, and its value will be greatest wherever humans collaborate.

Nautiyal comments, “GenAI is the magic wand, but you still need the magician to hold it. No single job, whether a teacher, doctor, lawyer, procurement specialist, banker, customer service, or support personnel, can be done completely by GenAI today or in the future with our current approaches. That’s because much of the data involved in a person’s job is specific to the situation. That data is not present in the training set of GenAI elements. It resides with the human, and it changes constantly.”

This means we can forget about robots replacing workers, says Narayanan. The reality will be far more enriching.

“GenAI agents will likely become a strong substitute for manual subprocesses in areas ranging from supply chains to customer service,” he predicts. “This will force businesses to redefine talent needs and embrace continuous reskilling.”

Sankar Narayanan

Chief practice officer of technology, media, entertainment, and insurance, Fractal

10. Adaptable organizations will optimize value

Rasesh Shah, Chief practice officer at Fractal, sums up GenAI’s potential for enterprises of all kinds.

“GenAI is a critical necessity, propelling innovation and reshaping industries,” Shah comments. “It’s a transformative force across sectors. Early adopters wield a competitive edge, securing relevance in a cutthroat market.”

For those lagging, it’s time to get ready to take advantage.

“Adaptability is vital.”“Executives must invest in continual learning to effectively harness this technology. As GenAI advances, so does its potential, promising an era ripe with unprecedented opportunities. The significance extends beyond industries. EdTech, powered by AI, transforms learning landscapes. For corporates, investing in EdTech isn’t just about upskilling; it’s about future-proofing. It ensures a workforce adept at navigating the evolving tech terrain, fostering innovation within the organization.

Rasesh Shah

Chief practice officer, Fractal

“GenAI is the guiding light steering businesses towards a future where creativity, efficiency and education converge for boundless possibilities.”