AI Trends Report 2024: These 12 trends await us

We are at the beginning of 2024, a time of fundamental change and exciting progress in the world of artificial intelligence. The next few months are seen as a critical milestone in the evolution of AI as it transforms from a promising future technology to a permanent reality in the business and everyday lives of millions. Together with the AI Hub Frankfurt, the central AI network in the Rhine-Main region, we are therefore presenting our trend forecast for 2024, the AI Trends Report 2024.

The report identifies twelve dynamic AI trends that are unfolding in three key areas: Culture and Development, Data and Technology, and Transparency and Control. These trends paint a picture of the rapid changes in the AI landscape and highlight the impact on companies and society.

Our analysis is based on extensive research, industry-specific expertise and input from experts. We highlight each trend to provide a forward-looking insight into AI and help companies prepare for future challenges and opportunities. However, we emphasize that trend forecasts are always speculative in nature and some of our predictions are deliberately bold.

Directly to the AI Trends Report 2024!

What is a trend?

A trend is different from both a short-lived fashion phenomenon and media hype. It is a phenomenon of change with a “tipping point” at which a small change in a niche can cause a major upheaval in the mainstream. Trends initiate new business models, consumer behavior and forms of work and thus represent a fundamental change to the status quo. It is crucial for companies to mobilize the right knowledge and resources before the tipping point in order to benefit from a trend.

12 AI trends that will shape 2024

In the AI Trends Report 2024, we identify groundbreaking developments in the field of artificial intelligence. Here are the short versions of the twelve trends, each with a selected quote from our experts.

Part 1: Culture and development

From the 4-day week to omnimodality and AGI: 2024 promises great progress for the world of work, for media production and for the possibilities of AI as a whole.

Thesis I: AI expertise within the company
Companies that deeply embed AI expertise in their corporate culture and build interdisciplinary teams with tech and industry knowledge will secure a competitive advantage. Centralized AI teams and a strong data culture are key to success.

“Data culture can‘t be bought or dictated. You need to win the head, the heart and the herd. We want our employees to consciously create, use and share data and give them access to data, analytics and AI together with the knowledge and the mindset to run the business on data.”

Stefanie Babka, Global Head of Data Culture, Merck

Thesis II: 4-day working week thanks to AI
Thanks to AI automation in standard software and company processes, the 4-day working week has become a reality for some German companies. AI tools such as Microsoft’s Copilot increase productivity and make it possible to reduce working hours without compromising growth.

“GenAI will continue to drive automation in many areas. This will be the new benchmark for standard processes in all sectors. While this may have a positive impact on reducing working hours, we need to ensure that GenAI is used responsibly, especially in sensitive and customer-facing areas.”

Dr. Jean Enno Charton, Director Digital Ethics & Bioethics, Merck

Thesis III: AGI through omnimodal models
The development of omnimodal AI models that mimic human senses brings the vision of general artificial intelligence (AGI) closer. These models process a variety of inputs and extend human capabilities.

“Multimodal models trained on more than just text have shown that they are better able to draw conclusions and understand the world. We are excited to see what omnimodal models will achieve.”

Dr. Ingo Marquart, NLP Subject Matter Lead, statworx

Thesis IV: AI revolution in media production
Generative AI (GenAI) is transforming the media landscape and enabling new forms of creativity, but still falls short of transformational creativity. AI tools are becoming increasingly important for creatives, but it is important to maintain uniqueness against a global average taste.

“Those who integrate AI smartly will have a competitive advantage. There will be leaps in productivity in the areas of ideation, publishing and visuals. However, there will also be a lot of “low” and fake content (postings, messaging), so building trust will become even more important for brands. Social media tasks are shifting towards strategy, management and controlling.”

Nemo Tronnier, Founder & CEO, Social DNA

Part 2: Data and technology

In 2024, everything will revolve around data quality, open source models and access to processors. The operators of standard software such as Microsoft and SAP will benefit greatly because they occupy the interface to end users.

Thesis V: Challengers for NVIDIA
New players and technologies are preparing to shake up the GPU market and challenge NVIDIA’s position. Startups and established competitors such as AMD and Intel are looking to capitalize on the resource scarcity and long wait times that smaller players are currently experiencing and are focusing on innovation to break NVIDIA’s dominance.

“Contrary to popular belief, there isn’t really a shortage of AI accelerators if you count NVIDIA, Intel and AMD. The real problem is customer funding, as cloud providers are forced to offer available capacity with long-term contracts. This could change in 18 to 24 months when current deployments are sufficiently amortized. Until then, customers will have to plan for longer commitments.”

Norman Behrend, Chief Customer Officer, Genesis Cloud

Thesis VI: Data quality before data quantity
In AI development, the focus is shifting to the quality of the data. Instead of relying solely on quantity, the careful selection and preparation of training data and innovation in model architecture are becoming crucial. Smaller models with high-quality data can be superior to larger models in terms of performance.

“Data is not just one component of the AI landscape; having the right quality data is essential. Solving the ‘first-mile problem’ to ensure data quality and understanding the ‘last-mile problem’, i.e. involving employees in data and AI projects, are crucial for success.”

Walid Mehanna, Chief Data & AI Officer, Merck

Thesis VII: The year of the AI integrators
Integrators such as Microsoft, Databricks and Salesforce will be the winners as they bring AI tools to end users. The ability to seamlessly integrate into existing systems will be crucial for AI startups and providers. Companies that offer specialized services or groundbreaking innovations will secure lucrative niches.

“In 2024, AI integrators will show how they make AI accessible to end users. Their role is critical to the democratization of AI in the business world, enabling companies of all sizes to benefit from advanced AI. This development emphasizes the need for user-friendly and ethically responsible AI solutions.”

Marco Di Sazio, Head of Innovation, Bankhaus Metzler

Thesis VIII: The open source revolution
Open source AI models are competing with proprietary models such as OpenAI’s GPT and Google’s Gemini. With a community that fosters innovation and knowledge sharing, open source models offer more flexibility and transparency, making them particularly valuable for applications that require clear accountability and customization.

“Especially for SMEs, AI solutions are indispensable. Since a sufficient amount of data for a proprietary model is typically lacking, collaboration becomes crucial. However, the ability to adapt is essential in order to digitally advance your own business model.”

Prof. Dr. Christian Klein, Founder, UMYNO Solutions, Professor of Marketing & Digital Media, FOM University of Applied Sciences

Part 3: Transparency and control

The increased use of AI decision-making systems will spark an intensified debate on algorithm transparency and data protection in 2024 – in the search for accountability. The AI Act will become a locational advantage for Europe.

Thesis IX: AI transparency as a competitive advantage
European AI start-ups with a focus on transparency and explainability could become the big winners, as industries such as pharmaceuticals and finance already place high demands on the traceability of AI decisions. The AI Act promotes this development by demanding transparency and adaptability from AI systems, giving European AI solutions an edge in terms of trust.

“Transparency is becoming a key issue in the field of AI. This applies to the construction of AI models, the flow of data and the use of AI itself. It will have a significant impact on discussions about compliance, security and trust. The AI Act could even turn transparency and security into competitive advantages for European companies.”

Jakob Plesner, Attorney at Law, Gorrissen Federspiel

Thesis X: AI Act as a seal of quality
The AI Act positions Europe as a safe haven for investments in AI by setting ethical standards that strengthen trust in AI technologies. In view of the increase in deepfakes and the associated risks to society, the AI Act acts as a bulwark against abuse and promotes responsible growth in the AI industry.

“Companies facing technological change need a clear set of rules. By introducing a seal of approval for human-centered AI, the AI Act turns challenges into opportunities. The AI Act will become a blueprint internationally, giving EU companies a head start in responsible AI and making Europe a place for sustainable AI partnerships.”

Catharina Glugla, Head of Data, Cyber & Tech Germany, Allen & Overy LLP

Thesis XI: AI agents are revolutionizing consumption
Personal assistance bots that make purchases and select services will become an essential part of everyday life. Influencing their decisions will become a key element for companies to survive in the market. This will profoundly change search engine optimization and online marketing as bots become the new target groups.

“There will be several types of AI agents that act according to human intentions. For example, personal agents that represent an individual and service agents that represent an organization or institution. The interplay between them, such as personal-personal, personal-institutional and institutional-institutional, represents a new paradigm for economic activities and the distribution of value.”

Chi Wang, Principle Researcher, Microsoft Research

Thesis XII: Alignment of AI models
Aligning AI models with universal values and human intentions will be critical to avoid unethical outcomes and fully realize the potential of foundation models. Superalignment, where AI models work together to overcome complex challenges, is becoming increasingly important to drive the development of AI responsibly.

“Alignment is, at its core, an analytical problem that is about establishing transparency and control to gain user trust. These are the keys to effective deployment of AI solutions in companies, continuous evaluation and secure iteration based on the right metrics.”

Daniel Lüttgau, Head of AI Development, statworx

Concluding remarks

The AI Trends Report 2024 is more than an entertaining stocktake; it can be a useful tool for decision-makers and innovators. Our goal is to provide our readers with strategic advantages by discussing the impact of trends on different sectors and helping them set the course for the future.

This blog post offers only a brief insight into the comprehensive AI Trends Report 2024. We invite you to read the full report to dive deeper into the subject matter and benefit from the detailed analysis and forecasts.

To the AI Trends Report 2024! Tarik Ashry