Explore Forrester’s 2024 predictions, uncovering the transformative power of generative AI and its impact on businesses in the Asia Pacific region. Gain insights into AI innovation, challenges, and opportunities for a competitive edge in the coming year.
Forrester’s 2024 predictions, recently released, indicate that while many businesses in the Asia Pacific (APAC) region view generative AI (genAI) as a tool for enhancing productivity, they face significant challenges in the form of risk-averse corporate cultures and insufficient data management capabilities. Only 30% of companies with more advanced IT practices are well-positioned to fully leverage AI’s advantages, which encompass increased productivity, enhanced operational resilience, improved customer experiences, and innovations in business models.
Forrester’s 2024 predictions encompass a range of topics and industries, including technology, innovation, B2B marketing, sales, product development, AI, automation, and customer experience (CX). These insights equip leaders with the knowledge needed to gain a competitive advantage in the year ahead.
Key takeaways from Forrester’s 2024 predictions include:
- Improvements in CX, largely attributed to genAI: CX is anticipated to experience a positive shift in 2024, driven by behind-the-scenes genAI that aids customer service representatives in responding to inquiries more quickly and effectively, resolving CX issues on the first interaction, and ensuring customers feel heard.
- Investment in custom AI solutions by agencies: The top 10 advertising agencies are expected to invest a total of $50 million in collaborative efforts to develop tailored AI solutions, enabling their clients to scale personalized marketing campaigns and enhance brand experiences.
- Enhanced productivity and creative problem-solving through enterprise AI initiatives: Generative AI is poised to increase productivity across all IT roles, not limited to developers. Additionally, investments by business, technology, and marketing leaders in genAI are projected to boost employees’ creative problem-solving capabilities by up to 50%, fostering customer-centric innovation and greater business value.
- Challenges in operationalizing customer trust for APAC firms: While earning customer trust and loyalty is crucial, many firms have not taken substantial steps to embed this commitment within their corporate culture. By the end of 2024, 25% of APAC’s largest companies are expected to express their strategic dedication to customer trust, but only 5% will effectively implement this commitment through measurement and organizational key performance indicators (KPIs).
- Clouds’ introduction of prompt engineering services: Cloud hyperscalers are set to announce the preview or general availability of prompt engineering, a method for structuring text to make it understandable by genAI models. However, enterprise adoption is predicted to be limited, with 80% of enterprises choosing to develop in-house prompt engineering expertise to ensure model grounding and value delivery.
- Increased regulatory focus on genAI: A mobile application employing ChatGPT will face fines for mishandling personally identifiable information. As a result, companies will need to identify applications that heighten their risk exposure and invest in third-party risk management.
- Shifts in B2B buying preferences due to generational differences: In 2024, 75% of business buying teams will be composed of millennial buyers. Forty percent of these buyers will demand early access to B2B product experts, valuing personal interactions with these experts more than any other in-person activities during face-to-face buying engagements.
Frederic Giron, VP and senior research director at Forrester, stated, “In 2024, the Asia Pacific region is preparing for a year of exploration and potential growth, with genAI taking center stage. The potential of genAI, combined with emerging technological innovations, is likely to inspire more APAC tech and business leaders to integrate the power of AI into their transformation efforts, driving positive business outcomes.”
Forrester’s 2024 predictions offer valuable insights into the evolving landscape of AI and its impact on businesses, particularly in the Asia Pacific region. As we anticipate the transformative potential of generative AI, it is clear that adapting to these technological advancements will be a defining factor for success in the coming year. The challenges and opportunities presented in the report underline the importance of embracing AI innovation while addressing organizational and regulatory concerns. With genAI at the forefront, businesses have the chance to lead the way in leveraging AI’s capabilities to drive enhanced customer experiences, operational efficiency, and creative problem-solving, ultimately shaping a future of growth and competitive advantage.