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

AI in 2024: Predictions and Progress Towards Boundless Innovation in IT

By Prasad Ramakrishnan, CIO at Freshworks

The potential for innovation knows no bounds. Over time, humanity has consistently pushed the boundaries of creativity - developing tools and systems to enhance our lifestyles and the way we work to drive efficiency and productivity. As I reflect on the technology trends of 2023, it's clear that the Oscar goes to AI.

The AI revolution and the relentless evolution of technology has set the stage for what's in store in 2024. With a focus on democratizing access and aligning with the fast pace of modern life, gen AI leads the charge in driving further technological innovations that'll include some profound shifts and breakthroughs.

Prediction One: Beyond the Hype

One of the most anticipated developments in 2024 is the maturation of AI technology. Over the years, AI has been surrounded by a great deal of hype and unrealistic expectations. However, in 2024, we anticipate that AI will move beyond the hype cycle and truly demonstrate its value. IT professionals are beginning to gain a better understanding of what AI can and cannot do and they're using it. Consequently, CIOs will need to ensure that AI is not merely a buzzword but a practical tool that enhances efficiency.

As IT professionals increasingly embrace AI to automate workflows and boost efficiency, CIOs will play a crucial role in equipping their teams with the right AI tools. Their focus will be on using AI to optimize IT workflows across various departments like HR and finance, to help improve business operations. In 2024 we'll see AI will move beyond the hype cycle and put IT efficiency into overdrive. 

Prediction Two: Solutions, Not Problems

The role of the Chief Information Officer is evolving rapidly. To be effective in 2024, CIOs must go beyond being mere technologists and become trusted advisors to their organizations. Understanding how departments like Human Resources, Sales, and Finance operate will be essential. This knowledge will enable CIOs to provide valuable insights and improve decision-making within the IT department.

In the pursuit of efficiency, CIOs should not always chase after the latest shiny object in technology. Instead, they should guide their teams in defining the problem statement before seeking solutions. Collaborating with the Chief Financial Officer (CFO) to ensure a balanced IT budget and avoiding overspending on unnecessary software will be one example of their expanded role.

Prediction Three: Unmasking Shallow AI Solutions

In 2024, shallow AI solutions will be exposed for what they truly are. Many SaaS offerings have marketed themselves as AI-driven, but often, these claims are nothing more than an "AI sticker on top." Users are becoming savvier when it comes to AI, with a recent survey indicating that 71% of IT professionals use AI to support their workloads. As a result, the scrutiny of AI applications will increase.

Organizations must engage in relentless app rationalization to ensure that the AI tools they adopt genuinely enhance productivity. Overly complex SaaS add-ons that detract from productive working hours will be phased out. It will be imperative for IT teams to discern between genuine AI-driven solutions and those that merely ride the AI wave.

Prediction Four: Tool Consolidation and Rationalization

The COVID-19 pandemic accelerated digital transformation, prompting organizations to hastily select and implement various IT tools. In 2024, there will be a concerted effort to reduce tech stack complexity. To do so, relentless app rationalization will take the lead, as organizations look to consolidate and optimize their IT toolsets.

This ongoing process of tool consolidation will be especially relevant in the era of AI. Streamlining the tech stack will enhance efficiency and enable organizations to fully harness the potential of AI-driven solutions.

As we look ahead to 2024, it looks to be a year of significant progress and transformation in the world of IT, with AI further proving that innovation is limitless.

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ABOUT THE AUTHOR

Prasad Ramakrishnan is CIO for Freshworks Inc. (NASDAQ: FRSH), a global leader in business software. At Freshworks, Prasad leads the company's IT vision, strategy and execution. A seasoned IT professional, SaaS evangelist and go-to thought leader on all things cloud, security and AI, Prasad's expertise is critical to the success of Freshworks products as well as global work culture. He spearheaded the company's sustained connectivity in response to the pandemic.

Prior to joining Freshworks, Prasad served as CIO at Veeva where he took a democratic approach to software adoption and empowered his employees - the would-be users - to decide on the software they would use. His team voted for Freshservice, Freshworks' ITSM (IT service management) offering. Ramakrishnan became an early adopter, customer and advocate of Freshworks which led to him joining the company.

Outside of Freshworks, Prasad serves on multiple advisory boards and volunteers his time locally by cooking and serving food for the homeless.