Virtualization Technology News and Information
Article
RSS
Hakkoda 2024 Predictions: GenAI Will Reveal Massive Data Gaps, Not Deliver Magic

vmblog-predictions-2024 

Industry executives and experts share their predictions for 2024.  Read them in this 16th annual VMblog.com series exclusive.

GenAI Will Reveal Massive Data Gaps, Not Deliver Magic

By Anand Pandya, Global Head of Financial Services at Hakkoda

It's hard to turn around these days without running into someone talking about GenAI: the revolutionary new technology that's promised companies, well, magic. Over the next year, plenty of CEOs and their cohorts will experience a let-down. Even if GenAI can deliver incredible results, what most companies lack isn't the desire to conquer the AI landscape: it's the data foundations to back it up. In 2024, we'll see many organizations commit sins similar to those made during the 2015-2016 data science hype. They'll try to build GenAI on top of fragile data infrastructure, and as a result, their investments will fail.

Companies Will Focus on Getting Their Data House in Order

Smart leaders will start with their own business intelligence and data quality. During an end-of-year conversation with the Depository Trust and Clearing Corporation, Executive Director Christopher Walsh noted that DTCC believes AI is essential to their future. But instead of diving right into building out GenAI, they're starting with data quality work. Data quality and strong BI are so essential to the success of AI and ML projects that you need to tackle them before you can even fully understand the opportunities for AI in your business.

In 2024, data leaders with vision will see more data quality wins than GenAI. As we draw toward the end of the year, companies whose processes are strong will begin to take their data from resource to asset. AI and ML are very much garbage in garbage out, or gold in gold out. The quality of your outcome with AI and ML will be determined by the quality of your own data. This isn't to say that GenAI has to wait, as proof of concepts, prototypes, and smaller implementations can see immediate benefits, but broad-scale adoption requires a stable foundation.

GenAI Projects Will Drive Data Governance & Security Investments

As companies dive into the world of GenAI, they will quickly realize that their data governance and security practices need to be up to par. GenAI models will need to be trained on companies' own data, and that training will require access to vast amounts of information. Companies will need to ensure that their data is accurate, consistent, and protected. As a result, they'll need to lean into cloud infrastructure and data governance models that keep their data secure, allowing them to dedupe and work with sensitive information without fear of cross-system migrations.

Cloud platforms like the Snowflake Data Cloud allow companies to securely store, process, and analyze large volumes of data for GenAI projects. The cloud offers advanced data governance features, allowing companies to implement strict access controls, encryption, and data monitoring capabilities. As regulations mature to meet GenAI head-on, companies that are well-positioned to answer regulatory questions and move at the pace of regulatory change will see themselves emerge with an advantage.

In 2024, companies that have already embraced cloud technology and established robust data governance practices will have a significant advantage. Technology like the Snowflake Data Cloud will be the backbone of GenAI projects, and companies that haven't already gotten off legacy systems will need to make rapid investments in cloud technology or risk obsolescence in a matter of years. 

The Companies that Clean Up Fastest Will Emerge Winners

2024 won't actually be a race to GenAI, but to the data quality, security, and business intelligence (BI) that makes it possible. In this fiercely competitive landscape, companies that invest heavily in strategic roadmaps addressing their data foundations and leading to smart AI and ML applications will disrupt their markets and build competitive advantages that will prove insurmountable for years to come.

These companies recognize that the quality of their outcome with AI and ML will be determined by the quality of their own data. By cleaning up their data and establishing strong data governance practices, they are building a solid foundation that will enable them to fully harness the power of AI in the future. In 2024, the companies that clean up fastest will emerge as the true winners, leaving their competitors struggling to catch up.

GenAI Will Change the Face of Business, When We're Ready

GenAI has the potential to revolutionize the business landscape, but only once we've laid the foundations and obtained the right data. Once companies have built a solid data house, equipped with strong BI and data governance practices, GenAI can truly transform the way we do business.

##

ABOUT THE AUTHOR

Anand Pandya 

Anand Pandya is the Global Head of Financial Services at Hakkoda, a modern data stack consultancy. With more than 20 years of experience as a leader in data-driven solutions and business intelligence, Pandya drives innovative technology from an executive standpoint. His passion lies in helping businesses with data management, focusing on organizational resource management and influencing business strategies. He is well versed in global business leadership, as well as product transformation, innovation, and development via unlocking the value of data.

Published Wednesday, December 06, 2023 7:33 AM by David Marshall
Comments
There are no comments for this post.
To post a comment, you must be a registered user. Registration is free and easy! Sign up now!
Calendar
<December 2023>
SuMoTuWeThFrSa
262728293012
3456789
10111213141516
17181920212223
24252627282930
31123456