February 24, 2024
2024 Trends: Four Ways GenAI Transforms Enterprise ERP Applications

As the semi-rational excitement around generic AI cools down, expert predictions reveal the true transformative power of this technology with greater clarity. It’s not just about how GenAI will help people work faster, smarter and more efficiently. The more we discover predictions about GenAI, the clearer its catalytic impact becomes. These are four ways GenAI will forever change enterprise applications for the better.

Conquer the skeptics: Make trusted AI the standard

The number one trend in Gartner’s Top Strategic Technology Trends Report for 2024 is AI TRISM; The acronym stands for Trust, Risk and Security Management.

There’s good reason for those priorities. In Forrester’s 2024 Predictions report, researchers at that firm found that 50% of US and 43% of French online adults who have heard about AI say GenAI is a threat to society. Nevertheless, these analysts said that 60% of skeptics will use GenAI and like it – whether knowing it or not. He expects the enterprise AI initiative to increase productivity and creative problem-solving by 50%, “fostering customer-centric innovation and creating unprecedented business value.”

Gartner analysts were even more optimistic, predicting that by 2026, enterprises implementing TRISM controls on AI applications will increase decision-making accuracy by eliminating 80% of faulty and illegitimate information.

Some market leaders are heeding these warnings and building large language models (LLMs) trained on trusted data. For example, in a recent executive Q&A, SAP Chief Technology Officer and Executive Board member Juergen Mueller explained how SAP Business AI is relevant, reliable, and responsible. He said people are creating AI use cases in the context of their organization’s real-world business processes and embedding them into their daily SAP systems. Built on leading ethics and data privacy standards, these use cases are based on an understanding of both business data and what it means within the business process.

IDC researchers expect that by 2026, 70% of cloud and software platform providers will bundle GenAI security and governance packages with their primary services, reducing the risk landscape by three times. Gartner predicted that by next year, most countries will have regulations for the use of AI technology that are explainable and include embedded bias amplification controls.

More from ForbesSAP BrandVoice: Embedding General AI in ERP applications: What can go wrong?

Chip shortage forces ROI-based focus

US-based companies have invested $166 billion in semiconductors and electronics since the passage of the 2022 Chips and Science Act. Still, scaling up chip manufacturing, R&D, and workforce training to deliver on the GenAI promise will be a difficult endeavor. Forrester analysts expect organizations to take a pragmatic approach to AI “driven by availability, silicon economics, and sustainability.” He estimates that AI processing will “hit a wall in 2024”, forcing companies to prioritize applications with the clearest ROI.

Smart and secure AI-powered customer experience

IDC said that by 2027, GenAI digital assistants will be the user interface for 25% of interactions with enterprise software, including software development. This percentage will be higher for those involved in customer interactions.

The CX opportunity remains largely untapped. Forrester found that 71% of companies have invested in offering chatbots, but only 16% of Americans use chatbots frequently for online adult support. In the firm’s 2024 predictions report, these analysts acknowledged that creating an effective chatbot is difficult. He said developers need expertise in creating experiences that are based on conversational AI.

Organizations are dealing with many privacy and compliance risks. In the near future, Forrester experts predicted that apps using ChatGPT will be fined for handling personally identifiable information.

According to Gartner, synthetic data will reduce the collection of personal customer data, thereby avoiding 70% of privacy breach sanctions by 2025.

More from ForbesSAP BrandVoice: How General AI empowers human innovation in the chemical industry

GenAI redesigns the employee experience

Like every seismic shift in society, people will need to adapt and learn new skills to benefit from GenAI benefits. IDC analysts predict that by 2027, 40% of current job roles in G2000 organizations will be redefined or eliminated due to GenAI adoption. He warned that underfunding of skills initiatives compared to spending on products and services would prevent 65% of enterprises from achieving full value from AI and other investments by 2026.

Gartner researchers advise organizations to enhance the employee experience with intelligent technology. The aim is to use these tools for insights and guided recommendations that “help employees accomplish what would otherwise be impossible within existing constraints of time and cognitive capacity.”

GenAI risk mitigation also impacts employee performance. IDC analysts said 60% of large enterprises will mandate formal data literacy and responsible AI training to mitigate new risks posed by widespread workforce use of GenAI.

Regardless of which industry forecasters are correct, GenAI investments are attractive. IDC estimates that global spending on AI solutions will exceed $500 billion by 2027. Gartner estimates that organizations will spend $3 trillion on AI by 2027. Capturing a significant portion of that lucrative revenue share requires reliable standards, re-skilling and discipline of employees. Seriously based strategy on realistic business results.

Leave a Reply

Your email address will not be published. Required fields are marked *