As Generative AI Finds its Feet, are Businesses Ready to Ride the Efficiency Wave?

Generative artificial intelligence (AI) marks a notable departure from traditional computing and is rapidly integrating itself into every business layer. This paradigm shift, aptly termed the fourth generation of AI, spells significant disruptions across enterprise landscapes. Three major areas earmarked for substantial value addition include user experience, automation on the application layer, and the platform powering each business. Merely interacting with software is ready for a transformative renaissance.

This substantial advancement in AI has seen companies like SAP integrating approximately 230 AI capabilities into their applications to drive increased productivity, reduce costs, and optimize functionality. Plans are already underway to increase this count to about 400 by the end of 2025. The platform – the core engine that powers every enterprise infrastructure - isn’t immune from this wave either. Issues of how developers engage with AI and matters of privacy and trust come to the fore.

To fully tap into the potential of generative AI, it’s crucial to go beyond technology for its own sake at the enterprise level. Instead, a focus should be made on solving real-world business problems, reducing costs, and increasing productivity and revenue. Planning around real-world utility of AI in solving business issues will be a key determinant of value derived from AI.

The prospect of artificial general intelligence (AGI) - AI capable of performing any cognitive task at least as well as an average human – is a tantalizing discussion for the next few years. As it stands, AI is poised to make significant strides in white-collar jobs that majorly require cognitive processing. However, it’s important to proactively consider how these advancements will dictate workforce reassignment and job creation for the future workforce.