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As the world witnessed the meteoric rise of AI throughout 2023, the question on everyone's mind is, "What does the future hold for AI in 2024?" In this exploration, we delve into five predictions that forecast the trajectory of AI software and ponder the key players who will drive its growth.
AI's journey to dominance is far from over. Our research indicates a tripling of total Software as a Service (SaaS) spend for AI in the six months leading to October 2023. Despite global economic uncertainties and inflation, companies are flocking to invest in AI products to augment their tech stacks. The IDC predicts that enterprise companies will spearhead this growth, constituting 28.1% of overall AI spend by 2027. In 2024, we anticipate a continued surge, possibly reaching a growth rate of 13.8%.
Why Enterprise?
Enterprise businesses, armed with ample capital and a penchant for innovation, are at the forefront of AI adoption. Their robust data strategies and risk-taking capabilities position them as the primary drivers of AI growth.
In a market flooded with unproven AI technologies, businesses face a conundrum in choosing the right products. With the absence of a substantial track record, companies are turning to alternative pricing models, and usage-based pricing emerges as a frontrunner. A report by Snowflake suggests that 2024 could witness the initial adoption of usage-based pricing, providing a low-risk entry point for businesses. As these concepts prove their viability, a shift towards subscription models may occur during contract renegotiation.
AI's potential applications seem boundless, from customer service chatbots to data analysis. While big tech providers release their own AI tools, 2024 is poised to be the year of AI startups. Fueled by the escalating investments from enterprise companies, startups offer agility and speed in catering to evolving enterprise needs. The spotlight, however, will shine brightest on AI startups in the security sector. As AI's power grows, so does the need to protect against potential misuse, leading to a surge in AI security startups.
AI's exponential growth has sparked concerns about unchecked development. The warnings of AI's potential dangers have led to increased regulatory efforts. The year 2023 witnessed initial regulations and declarations, and 2024 is expected to tighten the reins further. With a particular focus on AI security and legal rights, countries and international bodies are likely to introduce more regulations to govern AI development. Copyright law, in particular, will come under scrutiny, shaping the way AI uses published material for training and operation.
AI's integration into the workforce is hailed for its work-enabling capabilities. However, the flip side involves concerns about job displacement. While AI can significantly enhance efficiency, certain roles may face automation, potentially leading to job losses or significant role alterations. The trend points towards AI replacing certain support roles, particularly in areas like copywriting and customer support. While cost savings are anticipated, the allocation of these savings remains uncertain—whether they will be reinvested in AI, other areas of business growth, or re-training displaced employees.
Amidst the AI revolution, businesses are eager to harness its power. If you're considering diving into the AI landscape, 2024 could be the ideal year to review your tech stack and optimize costs. Diminish, with its advanced SaaS spend management capabilities, provides granular visibility into spend, correlates usage data, and automates spend optimizations. Unleash the potential of your AI investments with Diminish, securing the best deals on software purchases and renewals, ensuring up to 25% annual savings on SaaS and Cloud spend.
Ready to elevate your AI journey? Contact Diminish for unparalleled cost optimization and procurement support.
