Artificial Intelligence (AI), and more specifically, Generative AI captured the world’s imagination in 2023 – from creativity to design, from retail to healthcare.

At CyberMedia Research (CMR), our research reveals Indian enterprises reaping early rewards, with a staggering 55% implementing AI at scale. Generative AI adoption, in particular, has fueled the development of customer-centric products (60%), data-driven decision-making (59%), and improved customer services (47%). So, as we stand on the precipice of 2024, what does the future hold for AI and its generative counterpart?

As an analyst who has closely tracked the trajectory of technology trends, I am particularly excited about what 2024 holds. I believe we are on the cusp of a year where AI adoption surges at scale, and Generative AI’s real-world impact becomes undeniable.

While some may view AI as overhyped, I am fairly optimistic about what an AI-enabled future posits. We are not merely witnessing a technological advancement; we are at the dawn of a new era where AI, and particularly Generative AI, has the potential to fundamentally reshape the way we live, work, and interact with the world around us.

Unlocking Real-World Impact:

In 2024, enterprise success with Generative AI will depend on how they approach experimentation and their ability to deal with potential setbacks or even failure. I foresee a greater mainstreaming of generative AI.

Unlike the year before, enterprises will move beyond initial experimentation and prototyping to attain real-world tangible impact. Generative AI’s reach extends beyond product creation. It can conjure up synthetic data to train robots and autonomous vehicles, preparing them for the nuances and complexities of the real world.

The Rise of Multimodal AI:

In 2024, I foresee the rise of Large Multimodal Models (LMMs), moving beyond the confines of text and images that we witnessed until now. What does multimodal AI portend?

Generative AI will embrace multiple modalities, including images, audio, and video. Imagine the possibilities. These AI systems will be able to interpret and combine information from multiple senses. This shift not only unlocks a plethora of new possibilities but also promises to ground future AI in the rich fabric of the real world. Imagine the possibilities.

Multimodal AI will unlock powerful applications, such as image-based inventory management, healthcare diagnostics, and context-aware virtual assistants.

Personalization to the fore:

There will be a far greater shift to personalization, with personalized AI models tailored to specific data types and user preferences contributing to more accurate and relevant outputs.

This shift towards personalization promises not just accuracy and relevance, but also a deeper understanding of individual users and their interactions with technology. Consider, for instance, AI-fuelled marketing campaigns speaking directly to a target audience’s unique desires and needs.

The “Winner-Takes-All” Arena:

The Generative AI service provider market will undergo a strategic transformation in the year ahead. I foresee an evolutionary shift in market dynamics too, with many enterprises deciding to shift from vertical to horizontal market play.

In this new strategy, enterprises will delegate operational workflows to specialized companies that excel in specific industry domains and functions, such as sales enablement and creative work.

This strategic shift reflects a broader recognition that leveraging the expertise of specialized entities in specific areas is a more effective and efficient way to handle operational tasks, leading to meaningful advancements in the application of generative AI across various sectors.

The competitive market environment will transform into a ‘winner-takes-all’ market, favouring those enterprises that leverage and embed Generative AI as a layer on their to differentiate themselves from the competition.

Responsible AI: The Cornerstone of Progress:

In 2023, the initial excitement surrounding generative AI was clouded by concerns about biased outputs, misinformation, and ethical implications. As we move forward, there will be a more cautious approach from enterprises. Enterprises will increasingly favour robust AI policies that outline clear ethical guidelines and ensure the development and usage of responsible and trusted AI.

Beyond policy oversight, we will see a greater emphasis on Large Language Models (LLMs) focusing on accuracy and factuality, drawing upon authoritative sources instead of generating content from scratch. Training data will be rigorously examined and curated to prevent biased or harmful outputs.

Humans will oversee both training and inference, especially for sensitive applications, ensuring responsible AI development and deployment. Teams working with generative AI will receive proper training to understand and implement ethical and responsible practices.

The Road Ahead:

All said, 2024 will be a pivotal year for generative AI. As companies move beyond the hype and tackle the challenges head-on, we can expect to see responsible and grounded applications emerge, shaping the future of industries and transforming our relationship with technology.

The journey towards AI systems that understand and interact with the real world has just begun, and 2024 marks a crucial step in this promising yet still developing field.

— The author, Prabhu Ram, heads the Industry Intelligence Group at CyberMedia Research (CMR). He is a much sought-after and broad-based analyst, providing expert strategic advice to technology companies in Asia and elsewhere through proprietary and custom technology research.