Forrester's 2024 Predictions Report Highlights AI 'Shadow Pandemic' Due to Unapproved Employee Tool Adoption

Forrester Research recently released its highly anticipated 2024 Predictions Report, outlining a thoughtful approach to AI growth while highlighting the emergence of “shadow usage,” where employees adopt personal AI tools for enhanced productivity.

The 38-page report forecasts a tripling of AI platform budgets in 2024, as companies aim to invest in scalable solutions for building, deploying, and monitoring AI models. However, Forrester warns that these budget increases may not meet the anticipated demand, predicting that 60% of employees will turn to their own AI tools at work, creating significant regulatory and compliance challenges.

Key Insights from Forrester's 2024 Predictions:

- Employee Usage of Personal AI Tools: With 60% of employees using their own AI tools at work, organizations face new security risks.

- Budget Growth: AI platform budgets are set to triple, driven by increasing demand for AI capabilities.

- Adoption of Open-Source Models: Approximately 85% of companies plan to integrate open-source AI models into their technology stack, moving away from reliance on proprietary options like ChatGPT.

- Proactive Governance: 40% of enterprises will invest in AI governance to address compliance with emerging regulations.

- AI Hallucination Insurance: Major insurers are expected to begin offering coverage for errors and damages caused by AI mistakes.

- Generative AI Growth: The sector is projected to experience a 36% compound annual growth rate (CAGR) from 2023 to 2030 as adoption accelerates.

- Transition to Production: Enterprises will begin shifting AI from research and development into operational business applications.

- Strategic AI Management: AI strategies must prioritize managing shadow usage while driving business value.

- Pressure on Tech Leaders: CIOs and CDOs are increasingly compelled by both employees and executives to adopt AI solutions.

- Emergence of Intentional AI: 2024 is positioned to start the “era of intentional AI,” moving beyond the initial excitement to practical applications.

This report reflects a critical moment in the evolution of AI and data analytics, emphasizing the importance of a focused AI strategy even as generative AI generates enthusiasm in the business realm. Leaders must proactively mitigate risks while fostering responsible AI adoption.

As we enter 2024, Forrester’s predictions serve as a strategic roadmap for businesses, technologists, and policymakers navigating the AI landscape. While the potential of AI is vast, addressing its challenges with a pragmatic approach will be key to realizing its benefits while minimizing risks.