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Forrester’s 2024 predictions shed light on the state of AI adoption among Asia Pacific (APAC) firms. While many view generative AI (GenAI) as a tool for boosting productivity, a risk-averse culture and inadequate data management capabilities are emerging as significant barriers to realizing AI’s full potential.
Forrester’s analysis reveals that only 30% of firms with more mature IT practices are strategically positioned to harness AI’s benefits. These benefits include enhanced productivity, improved operational resilience, superior customer experiences, and innovations in business models.
“In 2024, Asia Pacific is bracing itself for a year of exploration and potential growth, with GenAI at the center of it all,” said Frederic Giron, VP and senior research director at Forrester.
“The promise and potential of GenAI, combined with a new wave of technological innovations, will inspire more APAC tech and business leaders to follow in the footsteps of early trailblazers and fuse the power of AI with their transformation efforts to drive business outcomes.”
The report provides a comprehensive overview of predictions in various industries, offering insights into technology, B2B marketing, sales, product development, AI, and automation. Forrester’s insights aim to empower industry leaders, helping them gain a competitive edge and thrive in the year ahead.
Forrester predicts that customer experience (CX) will significantly improve, primarily attributed to GenAI. Behind the scenes, GenAI will empower customer service agents to provide quicker, more effective responses, resolve CX issues in the first interaction, and leave customers feeling heard.
In 2024, the top 10 advertising agencies are expected to invest a combined $50 million in partnerships to develop custom AI solutions. These solutions will enable clients to scale personalized marketing campaigns and create exceptional brand experiences.
Forrester anticipates that enterprise AI initiatives will boost productivity and enhance creative problem-solving by up to 50% in the coming year. Generative AI is poised to transform various IT roles. At the same time, investments in GenAI will significantly increase employees’ creative problem-solving time, fostering customer-centric innovation and driving more excellent business value.
Building customer trust is a challenge for APAC firms, as only a few have taken this commitment seriously and integrated it into their corporate culture. By the end of 2024, approximately 25% of the region’s most prominent companies will express a strategic commitment to customer trust. Still, only 5% will effectively implement and measure this commitment through organizational KPIs.
Although cloud hyperscalers are set to introduce prompt engineering services to structure text for GenAI models, enterprise adoption is expected to be limited. Forrester predicts that 80% of enterprises will internally recruit prompt engineering talent to drive model grounding and value delivery.
Forrester suggests regulators will increasingly scrutinize GenAI applications’ handling of personally identifiable information. This could result in fines for companies that don’t adequately protect sensitive data, prompting increased investments in third-party risk management.
The report highlights a significant shift in B2B buying preferences driven by generational differences. With millennials comprising 75% of business buying teams, 40% of these buyers are expected to demand early access to B2B product experts in 2024. Personal interactions with product experts will become more meaningful than other in-person activities during face-to-face buying experiences.
Forrester’s 2024 predictions provide valuable insights into the evolving landscape of AI and its impact on various industries in the APAC region, helping businesses and leaders navigate the challenges and opportunities ahead.