The State of Generative AI 2024

The State of Generative AI 2024

This Forrester trends report is available now through November 30, 2024.

Download the full Forrester report →


The State Of Generative AI: Wave Of Disruption Coming

From the Forrester trends report "The State of Generative AI 2024."

Generative AI is shifting the paradigm of digital technology away from experiences based on pages, sites, and search terms and toward experiences based purely on natural language. It promises to transform how we interact with technology itself. Forrester expects that genAI will add convenience to and remove friction from a variety of experiences, reshape jobs in ways we are only beginning to contemplate, and disrupt organizations and industries.
However, it’s still early days. Broad confusion about and misunderstanding of the technology coexists with widespread experimentation; near-daily announcements of new features, investments, and partnerships; and hype from tech vendors about capabilities that may be months or years away. And there are still meaningful obstacles to genAI adoption for enterprises, particularly for externally oriented (i.e., customer-facing) use cases. These include questions about the quality of training data; the use of copyrighted material in training and outputs; model and data bias; frequent model “hallucinations” and inaccuracies; and data security concerns. Even so, enterprises are moving aggressively from education and exploration to experimentation and adoption, requiring new approaches to assessing business value and strong governance to ensure ethical and safe use.
—The State of Generative AI 2024

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Key Trends and Challenges Shaping Generative AI Adoption in 2024

  • Broad Adoption Plans: Over 90% of global enterprise AI decision-makers have concrete plans to implement generative AI for both internal and customer-facing use cases.
  • Productivity & Innovation: Enterprises expect productivity gains (47%), innovation, and cost efficiencies from generative AI, although most are still in the early stages of realizing these benefits.
  • Key Market Players: A small number of tech giants dominate the LLM market, including OpenAI, Meta, and Google, with open-source options like LLaMa and proprietary models like GPT-4 leading the way.
  • Cautious External Deployment: Many companies are using generative AI internally before cautiously expanding to customer-facing applications due to concerns around data quality, security, and AI model "hallucinations."
  • Significant Challenges: Obstacles to adoption include data privacy concerns, model errors, regulatory uncertainty, and a lack of explainability—making strong governance essential for safe use.

Discover how generative AI is reshaping industries and transforming productivity. Get the full insights and see what your business needs to stay ahead—download the complete 11-page Forrester report now!


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