Number of AI-Enabled Enterprise Applications to Double by 2024 Year-End: ISG Study
According to a recent ISG Market Lens™ Artificial Intelligence Study, enterprises are planning to nearly double their AI-enabled applications by the end of 2024. The average large enterprise, with a portfolio of about 1,800 applications, aims to enable 488 applications with AI by the end of 2024, up from 250 in 2023. This represents an increase in AI spending from 2% to 3.7% of their application budget.
The upcoming ISG AI Impact Summit, scheduled for September 9-10 in London, will feature leaders from major companies discussing AI implementation, change management, and result delivery. Key topics include practical AI deployment, AI's role in intelligent outsourcing, AI governance and compliance, and data-driven approaches.
Secondo un recente Studio ISG Market Lens™ sull'Intelligenza Artificiale, le imprese prevedono di quasi . L'impresa media di grandi dimensioni, con un portafoglio di circa 1.800 applicazioni, punta a abilitare 488 applicazioni con l'IA entro la fine del 2024, rispetto alle 250 del 2023. Ciò rappresenta un aumento della spesa per l'IA dal 2% al 3,7% del loro budget per le applicazioni.
Il prossimo ISG AI Impact Summit, in programma per il 9-10 settembre a Londra, vedrà leader di grandi aziende discutere sull'implementazione dell'IA, gestione del cambiamento e consegna dei risultati. Tra i temi principali ci sono il dispiegamento pratico dell'IA, il ruolo dell'IA nel outsourcing intelligente, la governance e la conformità dell'IA, e approcci basati sui dati.
Según un reciente Estudio sobre Inteligencia Artificial de ISG Market Lens™, las empresas tienen planes de casi duplicar sus aplicaciones habilitadas por IA para finales de 2024. La empresa media de gran tamaño, con un portafolio de aproximadamente 1,800 aplicaciones, aspira a habilitar 488 aplicaciones con IA para finales de 2024, en comparación con 250 en 2023. Esto representa un aumento en el gasto en IA del 2% al 3.7% de su presupuesto de aplicaciones.
El próximo ISG AI Impact Summit, programado para el 9 y 10 de septiembre en Londres, contará con líderes de grandes empresas que discutirán sobre la implementación de IA, gestión del cambio y entrega de resultados. Los temas clave incluyen el despliegue práctico de IA, el papel de la IA en la subcontratación inteligente, la gobernanza y el cumplimiento de la IA, y enfoques basados en datos.
최근 ISG Market Lens™ 인공지능 연구에 따르면, 기업들은 2024년 말까지 인공지능 기반 애플리케이션을 거의 두 배로 늘릴 계획을 세우고 있습니다. 평균 대기업은 약 1,800개의 애플리케이션 포트폴리오를 보유하고 있으며, 2024년 말까지 488개의 애플리케이션에 인공지능을 적용하는 것을 목표로 하고 있습니다, 이는 2023년의 250개에서 증가한 수치입니다. 이는 애플리케이션 예산의 2%에서 3.7%로 인공지능 지출 증가를 의미합니다.
오는 ISG AI Impact Summit은 9월 9일부터 10일까지 런던에서 개최되며, 주요 기업의 리더들이 인공지능 구현, 변화 관리, 결과 제공에 대해 논의할 예정입니다. 주요 논의 주제는 실용적인 인공지능 배포, 인공지능의 지능형 아웃소싱 역할, 인공지능의 거버넌스 및 규정 준수, 데이터 기반 접근 방식 등이 포함됩니다.
Selon une récente étude ISG Market Lens™ sur l'intelligence artificielle, les entreprises prévoient de presque doubler leurs applications activées par l'IA d'ici la fin de 2024. L'entreprise moyenne de taille importante, avec un portefeuille d'environ 1 800 applications, vise à activer 488 applications avec l'IA d'ici fin 2024, contre 250 en 2023. Cela représente une augmentation des dépenses en IA de 2 % à 3,7 % de leur budget applicatif.
Le prochain ISG AI Impact Summit, prévu pour les 9 et 10 septembre à Londres, rassemblera des leaders de grandes entreprises pour discuter de l'implémentation de l'IA, de la gestion du changement et de la livraison de résultats. Parmi les sujets clés figurent le déploiement pratique de l'IA, le rôle de l'IA dans l'externalisation intelligente, la gouvernance et la conformité de l'IA, ainsi que des approches basées sur les données.
Laut einer aktuellen ISG Market Lens™ Studie zur Künstlichen Intelligenz planen Unternehmen, bis Ende 2024 ihre KI-unterstützten Anwendungen nahezu zu verdoppeln. Das durchschnittliche große Unternehmen mit einem Portfolio von etwa 1.800 Anwendungen zielt darauf ab, bis Ende 2024 488 Anwendungen mit KI zu aktivieren, verglichen mit 250 im Jahr 2023. Dies stellt einen Anstieg der Ausgaben für KI von 2 % auf 3,7 % ihres Anwendungsbudgets dar.
Der bevorstehende ISG AI Impact Summit, der für den 9. und 10. September in London geplant ist, wird Führungskräfte großer Unternehmen präsentieren, die über die Implementierung von KI, Change Management und Ergebniserbringung diskutieren. Zu den Schlüsselthemen gehören die praktische Einführung von KI, die Rolle der KI im intelligenten Outsourcing, KI-Governance und Compliance sowie datengestützte Ansätze.
- Enterprises plan to nearly double AI-enabled applications by end of 2024
- AI spending expected to increase from 2% to 3.7% of application budget
- ISG AI Impact Summit to feature leaders from major companies discussing AI implementation
- 22% of respondents cite future regulatory impacts as a top challenge to AI adoption
- 20% identify internal AI governance as a major challenge
- 16% are concerned about unintended liability and risks associated with AI
Insights
The ISG Market Lens™ Artificial Intelligence Study reveals a significant trend in enterprise AI adoption, with companies planning to nearly double their AI-enabled applications by the end of 2024. This rapid expansion, from an average of 250 AI-enabled applications in 2023 to 488 by 2024, represents a substantial shift in AI investment, increasing from
This accelerated adoption rate translates to enterprises enabling 4-5 applications with AI every week, a pace that will likely challenge many organizations' implementation capabilities. The study also highlights key concerns in AI adoption:
22% of respondents cite future regulatory impacts as a top challenge20% identify internal AI governance as a major hurdle16% express concerns about unintended liability and risks
These findings underscore the need for robust AI governance frameworks and risk management strategies as enterprises rapidly scale their AI implementations. The upcoming ISG AI Impact Summit, featuring leaders from major corporations, will likely provide valuable insights into practical AI deployment strategies and governance best practices.
For investors, this trend signals significant growth opportunities in the AI sector, particularly for companies providing AI implementation services, governance solutions and risk management tools. However, the rapid pace of adoption also suggests potential volatility as enterprises navigate the challenges of large-scale AI integration.
The ISG study's findings paint a picture of explosive growth in enterprise AI adoption, which has profound implications for the technology market landscape. The projected increase in AI-enabled applications from 250 to 488 per enterprise by the end of 2024 represents a compound annual growth rate (CAGR) of nearly
Key market segments poised for growth include:
- AI integration and consulting services
- AI governance and compliance solutions
- AI-powered enterprise software
- Cloud infrastructure optimized for AI workloads
The diversity of industries represented at the ISG AI Impact Summit - including utilities, healthcare, banking, automotive and consumer goods - indicates that AI adoption is broad-based across sectors. This widespread adoption suggests a maturing AI market moving beyond early adopters to mainstream implementation.
However, the study also reveals potential bottlenecks in the AI market. The need to enable 4-5 applications with AI weekly highlights a possible shortage of skilled AI professionals, which could drive up labor costs and potentially slow adoption rates. Additionally, the concerns around regulatory impacts and governance suggest a growing market for specialized AI risk management and compliance solutions.
For investors, this data points to a robust growth phase in the AI market, but also signals the need for careful evaluation of companies' abilities to scale their AI offerings and navigate the complex regulatory landscape emerging around AI technologies.
The projected doubling of AI-enabled applications in enterprises by the end of 2024 presents significant financial implications for both technology providers and adopters. For AI solution providers, this trend suggests a potential revenue growth opportunity of up to
Key financial considerations include:
- Increased AI spending from
2% to3.7% of IT budgets represents a85% year-over-year growth in enterprise AI investments. - The rapid adoption rate (4-5 applications per week) may lead to higher short-term costs for enterprises as they rush to implement AI solutions.
- Potential for margin pressure on AI service providers due to talent shortages and the need for rapid scaling.
For publicly traded AI companies, this growth trajectory could translate into strong revenue forecasts for the coming fiscal year. However, investors should be cautious of potential margin compression due to scaling challenges and increased competition in the space.
Enterprise adopters may see increased capital expenditures in the short term as they invest in AI infrastructure and talent. However, the long-term financial impact could be positive if AI implementations lead to increased efficiency and cost savings.
The emphasis on AI governance and compliance in the study suggests a growing market for risk management solutions. This could create opportunities for companies specializing in AI ethics, security and compliance tools.
Overall, while the financial outlook for the AI sector appears strong, investors should carefully assess companies' ability to scale efficiently and manage the regulatory and ethical challenges associated with rapid AI adoption.
Upcoming ISG AI Impact Summit to feature leaders with Scottish Water, AstraZeneca, BP, Danske Bank, HelloFresh, Diageo, Jaguar Land Rover and more
The ISG Market Lens™ Artificial Intelligence Study found the average large enterprise has an application portfolio of just under 1,800 applications. ISG study respondents said they will enable an average of 488 applications with AI by the end of 2024, up from 250 AI-enabled applications in 2023, representing a shift in AI spending from 2 percent in 2023 to 3.7 percent in 2024.
“Generative AI has made it abundantly clear that use cases for artificial intelligence technology are expansive,” said Steve Hall, chief AI officer, ISG, and host of the event. “To nearly double the number of AI-enabled applications by the end of 2024, enterprises will be enabling four or five applications with AI each week. Most organizations will need help to strike the right balance between AI spending and cost optimization and deliver the expected business results.”
The ISG AI Impact Summit, September 9–10, at the Park Plaza Victoria London, will welcome leaders from Scottish Water, Bupa, BP, Barilla Group, AstraZeneca, Danske Bank, HelloFresh, Bosch Global Software Technologies, Diageo, Jaguar Land Rover, IHG, London Stock Exchange Group (LSEG), Newcross Healthcare and more, to share perspectives on how they plan to implement AI, drive change and deliver meaningful results.
Scottish Water Chief Technology Officer John Cairney will join Hall for the first session of the event – a discussion of the utility’s practical AI deployment and the trajectory of AI across the utilities sector.
The next session, “AI's Role in Intelligent Outsourcing,” will ask roundtable participants Axel Philip, strategy director, Danske Bank; Arsalan Baig, global data science and AI manager, Barilla Group, and Clare Simmons, group head of vendor management at Bupa, how AI will shape the future of the business outsourcing services sector.
The ISG Startup Challenge will round out day one, featuring entrepreneurs pitching their business innovations to a panel of judges for an audience vote. David Sully, CEO, Advai, which assesses AI failures so clients can improve their AI systems’ trustworthiness, will face off against James Drayson, CEO and co-founder of Appella AI, which develops ethical and responsible conversational AI for the customer service, cybersecurity, legal and healthcare sectors.
On the second day of the event, Oliver Patel, enterprise AI governance lead for AstraZeneca, will join the “AI Governance and Compliance: A Practical Playbook” session to review the importance of guardrails, controls and responsible AI use.
According the ISG Market Lens AI study, 22 percent of respondents said future regulatory impacts are a top-three challenge to adopting AI, while 20 percent identified internal AI governance as a top challenge and 16 percent cited unintended liability and risks.
The legal, regulatory and risk implications of AI mainstreaming will be covered by Jagvinder Kang, partner, International and
In the session, “How Data Driven Can You Be?,” Robert Chilvers, chief data and AI officer, Newcross Healthcare; Nikolas Schriefer, director of product - Global AI, HelloFresh; Debasis Bisoi, global head, SVP, Bosch Global Software Technologies, and Gael Decoudu, chief digital officer, Noggin HQ, will discuss data engineering and AI integration challenges.
Hitachi Digital Services, Bosch Global Software Technologies, Accenture, Persistent Systems and Unisys are ISG AI Impact Summit event sponsors. Change Rebellion is an influencer partner, and CIOInsights, CIOReview, CIO TechWorld, CrmXchange, Digital Workplace Group, Hifo.co, HRM Outlook, ICON Outlook, the Technology Business Management Council and Telecom Reseller are media partners.
Additional information and registration are available on the event website.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in
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Press:
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG
+1 978 518 4520
isg@matternow.com
Source: Information Services Group, Inc.
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