1、 October 2023,IDC#US50435423 IDC FutureScape IDC FutureScape:Worldwide IT Industry 2024 Predictions Rick Villars Ritu Jyoti Nobuko Iisaka Jennifer Hamel Leonardo Freitas Gina Smith,PhD Sudhir Rajagopal Heather Hershey Courtney Munroe Tolga Yalcin Peter Chahal Wilson Xavier IDC FUTURESCAPE FIGURE FIG

2、URE 1 IDC FutureScape:Worldwide IT Industry 2024 Top 10 Predictions Note:Marker number refers only to the order the prediction appears in the document and does not indicate rank or importance,unless otherwise noted in the Executive Summary.Source:IDC,2023 2023 IDC#US50435423 2 EXECUTIVE SUMMARY In 2

3、023,a new chapter of the digital business era started:AI everywhere.It promises to drastically reduce the time and costs associated with customer-and employee-facing use cases as well as code,content,and product design processes.This IDC FutureScape provides the top 10 predictions on the future of t

4、he IT Industry and the implications for organizations as they extend their digital business efforts and begin to consider how the use of artificial intelligence(AI)everywhere will affect technology decisions.It addresses a wide range of topics and use cases.Chief information officers(CIOs),chief tec

5、hnology officers(CTOs),and all IT decision makers should approach each prediction in three steps:Assess the relevance of each prediction.Does this prediction apply to technology decisions and investments made by my business today and in the future?If it is not seen as relevant,should it?What do I ri

6、sk if I ignore it?Assess the urgency of each prediction.How soon must I address the effects of each prediction on my IT team and business,and not just all businesses?Who within the organization will I need to include in discussions?Assess the resource requirements of each prediction.What will this p

7、rediction cost in terms of treasure,time,and organizational change?How will it impact spending/decisions in adjacent technology areas?Can it save my company money or allow my company to deliver new revenue faster if done correctly?The following 10 predictions represent the expected IT industry trend

8、s with the greatest potential impact on enterprises technology and digital business plans:Prediction Prediction 1 1:By 2025,the G2000 will allocate over 40%of core IT spend to AI initiatives,leading to a double-digit increase in the rate of product and process innovations.Prediction 2Prediction 2:Wi

9、th tech providers allocating 50%of R&D,staffing,and capex investments to AI/automation through 2026,CIOs will struggle to align vendor selection and ITOps priorities with new use cases.Prediction 3:Prediction 3:Into 2025,all enterprises will deal with uncertain infrastructure costs and accessibility

10、,triggering the use of stop-gap measures that make cloud economics and data logistics goals harder to achieve.Prediction 4:Prediction 4:In 2024,providers across the hardware,software,and services spectrum will aggressively expand their private and open source data portfolios,making strategic partner

11、ing decisions more unstable.Prediction 5:Prediction 5:Through 2026,the underfunding of skills initiatives compared with products/services spend will prevent 65%of enterprises from achieving full value from AI,cloud,data,and security investments.Prediction 6:Prediction 6:By 2025,40%of service engagem

12、ents will include generative AI(GenAI)enabled delivery,triggering a shift in human-delivered services for strategy,change,and training to prepare organizations for AI everywhere.Prediction 7:Prediction 7:In 2027,80%of infrastructure,security,data,and apps will rely on advanced control platforms for

13、coordinated AI-enabled service delivery,but only half of enterprises will use them effectively.Prediction 8:Prediction 8:By 2026,all new IT brands,products,and services targeting underserved customer segments/personas will be based on tight integration of diverse AI services that deliver new capabil

14、ities at lower costs.2023 IDC#US50435423 3 Prediction 9:Prediction 9:By 2027,60%of F500 firms will leverage ubiquitous experiences,edge analytics,and GenAI to enable customers to create their own experience journeys,improving customer-desired outcomes and values.Prediction 10Prediction 10:By 2028,80

15、%of enterprises will integrate low Earth orbit(LEO)satellite connectivity,creating a unified digital service fabric that ensures resilient ubiquitous access and guarantees data fluidity.This IDC study provides IDCs 2024 top 10 predictions for the future of the IT Industry and provides guidance on ho

16、w IT leaders should prepare.Every IT provider will incorporate AI into the core of their business,investing treasure,brain power,and time,says Rick Villars,group vice president,Worldwide Research at IDC.For CIOs and digitally savvy C-suite members,this pivot promises a cornucopia of new,innovative,A

17、I-enhanced products/services but also threatens to inundate IT teams with many now with AI options that increase the risks associated with uncontrolled cost increases and loss of data control.IDC FUTURESCAPE PREDICTIONS Summary of External Drivers AI AI everywhereeverywhere Generative AI takes the s

18、potlight The The drive todrive to automate automate Maximizing efficiency and new opportunities ShiftingShifting tech regulatory landscapetech regulatory landscape Navigating risk and opportunity The The digital businessdigital business imperative imperative Competitiveness and outcomes Dynamic Dyna

19、mic w work and skills requirements ork and skills requirements New work mode era Everything aEverything as s a service intensifies a service intensifies Transforming models to drive change CybersecuCybersecurity and rity and risk risk Building resilience against multiplying threats GeopoliticGeopoli

20、tical al turbuleturbulence nce Sovereignty under emerging fragmentation OperationaOperationalization of ESGlization of ESG Measuring and implementing sustainability GlobalGlobal supply chain resiliency supply chain resiliency Push for diversification EconomEconomic ic uncertainty uncertainty IT mala

21、ise and market volatility Predictions:Impact on Technology Buyers Prediction 1:By 2025,the G2000 Will Allocate Over 40%of Core IT Spend to AI Initiatives,Leading to a Double-Digit Increase in the Rate of Product and Process Innovations Artificial intelligence has,especially over the past two to thre

22、e years,heralded game-changing innovation in both product development and operational processes,driving a fundamental shift in how enterprises function,meet customer needs,and bolster internal productivity.In the area of product innovation and advancement,AI empowers organizations to create and deli

23、ver exceptionally customized and relevant offerings.AI has the capacity to examine customer preferences and behaviors,empowering businesses to customize their products to cater to individual requirements.For instance,in the realm of ecommerce,AI-driven recommendation systems are employed by platform

24、s to propose products to customers,resulting in an improved user experience and bolstered sales.2023 IDC#US50435423 4 In addition,AI has effectively demonstrated value in driving process innovation within enterprises across industry sectors.By automating repetitive and rule-based tasks,AI-powered ro

25、botic process automation(RPA)optimizes workflows,reduces errors,and enhances operational efficiency.For instance,within the financial services sector,AI-driven chatbots can efficiently handle routine customer queries,allowing human agents to concentrate on more intricate responsibilities.Furthermore

26、,AI facilitates predictive maintenance in manufacturing,enabling companies to identify and rectify equipment issues proactively,thereby preventing costly downtime.It would not be an understatement to mention that the impact of AI on innovation extends beyond mere process improvement.It leads to the

27、creation of entirely new business models and has the potential to disrupt several industry verticals.Both start-ups and established enterprises are leveraging AI to develop innovative solutions that were previously inconceivable.In summary,AIs influence on both product and process innovation is prof

28、ound,promoting ingenuity,efficiency,and the emergence of entirely novel possibilities within the business landscape.Associated Drivers AI everywhere AI everywhere Generative AI takes the spotlight The digital business imperativeThe digital business imperative Competitiveness and outcomes The The d d

29、rive to rive to a automate utomate Maximizing efficiency and new opportunities Contributing/Complementary Predictions By 2026,over 50%of G2000 will adopt financial applications with dedicated generative AI functionality to support financial reporting activities(see Prediction 5 in IDC FutureScape:Wo

30、rldwide Corporate Banking 2024 Predictions,IDC#US50795823,October 2023).By 2026,driven by the demand to scale hyper-personalized patient experiences,improve collaboration,and foster equity,60%of global healthcare organizations will double GenAI investments(see Prediction 4 in IDC FutureScape:Worldwi

31、de Healthcare Industry 2024 Predictions,IDC#US50105223,October 2023).By 2026,one-third of retailers will use computer vision to make self-checkout 75%less riddled by shrink and BOPIS and curbside service 25%less time consuming(see Prediction 10 in IDC FutureScape:Worldwide Retail 2024 Predictions,ID

32、C#US51280023,October 2023).IT Impact IT teams would need to have enhanced focus on data management,especially activities around data integration,quality,and governance.AI model bias and explainability are key areas of concern for IT and data science professionals.Enterprises would require ample AI/m

33、achine learning(ML)-related skills development.An acute shortage of skilled AI/ML professionals could potentially prove to be a bottleneck for scaling of AI initiatives in the future.As AI systems become more sophisticated,so do cybersecurity threats.IT teams need to bolster security measures to pro

34、tect AI models and data from potential breaches.IT departments are tasked with overseeing expenses related to AI,encompassing hardware,software,and cloud services and the continuous upkeep of these resources.Skillful management of these costs is imperative to prevent exceeding budget limits.2023 IDC

35、#US50435423 5 Guidance Put in place strong data governance procedures to guarantee the quality,security,and adherence to regulations of your data.Enforce measures such as controlling data access,encrypting data,and tracking data lineage to safeguard sensitive information.Regularly assess and mitigat

36、e risks associated with AI projects,including technical,operational,and ethical risks.Implement contingency plans for potential issues.Establish ethical guidelines for AI usage within the organization to ensure responsible and unbiased AI development and deployment.Invest in training and upskilling

37、IT team members in AI,machine learning,and data science.This will empower them to understand AI technologies,make informed decisions,and effectively manage AI-related projects.Prediction 2:With Tech Providers Allocating 50%of R&D,Staffing,and Capex Investments to AI/Automation Through 2026,CIOs Will

38、 Struggle to Align Vendor Selection and ITOps Priorities with New Use Cases In the next two years,most G2000 companies and many smaller enterprises will experience a notable shift in the weight of technology investments toward AI implementation and the adoption of AI-enhanced products/services.One i

39、ndustry,however,will make much a greater and faster AI pivot during the same period:the IT Industry itself.Past major technology inflection points such as client/server,the web,mobile,and cloud were concentrated in specific subgroups of the IT Industry.The incorporation of AI into the business is so

40、mething that every IT company from silicon to software to devices to network services to datacenter operators to professional services will invest treasure,brain power,and time to address.For most,AI will replace cloud as the lead motivator of innovation,but cloud will continue to play a critical su

41、pporting role in enabling a rapid pivot.For CIOs,CTOs,emerging chief AI officers,and digitally savvy C-suite members,this pivot holds out the promise of a cornucopia of new,innovative,AI-enhanced IT solutions that boost revenue and competitive position.But it also threatens to inundate IT teams with

42、 many now with AI options that increase the risks associated with uncontrolled cost increases and loss of data control.Associated Drivers AI AI everywhereeverywhere Generative AI takes the spotlight The The digital business imperative digital business imperative Competitiveness and outcomes Operatio

43、nalization of ESGOperationalization of ESG Measuring and implementing sustainability Contributing/Complementary Predictions By 2026,55%of CIOs will leverage business-savvy in-house developers and tools that use GenAI and low code/no code,as they and LOB developers build competitive differentiation t

44、hrough custom apps(see Prediction 10 in IDC FutureScape:Worldwide CIO Agenda 2024 Predictions,IDC#US51294523,October 2023).By 2026,70%of cloud and software platform providers will bundle GenAI safety and governance packages with their primary services,reducing GenAI risk scenarios by three times(see

45、 Prediction 1 in IDC FutureScape:Worldwide Artificial Intelligence and Automation 2024 Predictions,IDC#AP50341323,October 2023).2023 IDC#US50435423 6 By 2027,95%of G2000 organizations will leverage GenAI in hardware and software life-cycle services to drive quality and efficiency across their digita

46、l business life cycle(see Prediction 3 in IDC FutureScape:Worldwide Services 2024 Predictions,IDC#US51284223,October 2023).By 2027,65%of G2000 firms will reallocate 40%of customer experience(CX)spend on emerging products and skills as improved GenAI renders entire software categories obsolete(see Pr

47、ediction 4 in IDC FutureScape:Worldwide Future of Customer Experience 2024 Predictions,IDC#US50111423,October 2023).By 2027,the demand for opex-based computational services will lead to quantum computing,AI and HPC services becoming the largest segment of public cloudbased IaaS and PaaS services(see

48、 Prediction 10 in IDC FutureScape:Worldwide Performance-Intensive Computing 2024 Predictions,IDC#US51320123,October 2023).IT Impact Most existing products/services that IT teams rely upon will add AI extensions that promise improved capabilities and operational efficiency but also require training t

49、o use effectively.The promises and new pricing mechanisms associated with new intelligent products and services alter existing assumptions used to access ROI and business value.AI replaces cloud as the lead driver of technology industry investment decisions,but cloud continues to play a critical sup

50、porting role in delivery.Guidance Allocate funds now for the retraining/reskilling of core ITOps,SecOps,and DevOps teams,and insist that providers include ongoing training as part of any customer success programs.Establish clear guidelines on the acceptable use of log and evaluation data as well as

51、code by providers,and include assumptions about value to provider in ROI and pricing assessments.Initiate the creation of an AI center of excellence within the CTO organization that is tasked with accessing emerging AI acceleration technologies and how effectively tech providers are adopting those t

52、echnologies in their own product/services.Prediction 3:Into 2025,All Enterprises Will Deal with Uncertain Infrastructure Costs and Accessibility,Triggering the Use of Stop-Gap Measures That Make Cloud Economics and Data Logistics Goals Harder to Achieve The rate of GenAI investment by enterprises wi

53、ll be constrained through 2025 to levels below what most enterprises would like to reach because of considerable turbulence created by major workload and resource shifts in corporate and cloud datacenters.More than one-third(37%)of the 1,300 IT leaders in IDCs August 2023 GenAI Awareness,Readiness,a

54、nd Commitment Survey already believed that excessive infrastructure costs linked to silicon supply constraints are major limitations to their greater evaluation and use of GenAI in their business.This turbulence will not be limited to the well-publicized imbalance in access to accelerated computing

55、silicon/processors.Other major sources of turbulence and,therefore,challenges to address will play out in AI-enabling networks(reducing network bottlenecks that limit model building/tuning performance),expanding GenAI-capable facilities(building out or gaining access to more datacenters with next-ge

56、neration power/cooling systems)and building AI/GenAI-skilled development and operations staff levels within enterprises,software companies,and third-party service providers(SPs).2023 IDC#US50435423 7 Associated Drivers Global Global supply chain resiliency supply chain resiliency Push for diversific

57、ation AI AI everywhereeverywhere Generative AI takes the spotlight Economic Economic uncertaintyuncertainty IT malaise and market volatility Contributing/Complementary Predictions By 2025,50%of enterprises will break with the public cloud migration trend and primarily deploy HPC on premises at a man

58、aged services provider or at a colocation provider(see Prediction 3 in IDC FutureScape:Worldwide Cloud 2024 Predictions,IDC#US51294723,October 2023).By 2026,the strategic importance of GenAI will force a market-driven reset of the current single vendordominated coprocessor market for GenAI chips and

59、 will drive end-user system prices down by 25%(see Prediction 8 in IDC FutureScape:Worldwide Future of Digital Infrastructure 2024 Predictions,IDC#US50401023,October 2023).By 2027,60%of enterprise developers will use GPUs and other specialty processors to enhance development for machine learning,AI,

60、video editing,3D modeling,simulations and digital twins(see Prediction 9 in IDC FutureScape:Worldwide Developer and DevOps 2024 Predictions,IDC#US50136023,October 2023).By 2028,75%of organizations will require OEMs/ODMs to provide detailed circularity metrics about design,manufacturing,life cycle,re

61、pair,reuse,and disposal in dashboards to facilitate reporting(see Prediction 2 in IDC FutureScape:Worldwide Sustainability/ESG 2024 Predictions,IDC#US51294923,October 2023).By 2028,the need for sufficient,affordable computational power for HPC and AI workloads will lead to breakthroughs in processin

62、g technologies that break the current monopoly of accelerator vendors(see Prediction 6 in IDC FutureScape:IDC FutureScape:Worldwide Performance-Intensive Computing 2024 Predictions,IDC#US51320123,October 2023).IT Impact IT teams face continued questions from business decision makers whove already re

63、ached the conclusion that implementing GenAI or using GenAI-enhanced software will be expensive.Cost and performance assumptions related to standard power/cooling/networking cabling requirements for corporate and colocation provider datacenters require major revisions.Rapid changes in processor,larg

64、e language model(LLM),and AI technology areas increase the risk of accumulating technical debt at a time in which the scrutiny of high up-front capital costs is elevated.Guidance Commit early to ITOps/AIOps solutions that enable close tracking and control of costs and that can tie investments to act

65、ual benefits in productivity,revenue growth,and competitive position.Incorporate facilities and power assumptions into all GenAI use-case cost/benefits analysis,especially those related to meeting corporate sustainability goals.Establish long-term relationships with IT suppliers that have strong cap

66、abilities in closing the loop and optimizing the life cycle and full recovery of asset value for any dedicated IT equipment deployed.2023 IDC#US50435423 8 Prediction 4:In 2024,Providers Across the Hardware,Software,and Services Spectrum Will Aggressively Expand Their Private and Open Source Data Por

67、tfolios,Making Strategic Partnering Decisions More Unstable A recurring theme that IDC hears from CIOs and C-suite leaders is the significance of data as they evaluate GenAI use cases and the broader use of AI in the coming years.Some in the IT industry refer to data as the new oil.Others call it th

68、e new water.Both capture important ideas,but for enterprises in an AI everywhere world,both LLMs(that are open source and proprietary based)and data will be corporate assets and just as important in assessing an enterprises value as its revenue,debt,and profit.Technology supplier/providers already r

69、ecognize the importance of data for their own AI pivot and have started to consolidate their own data assets.They are making major investments in IT-specific areas such as ITOps and IT log data.Some are also expanding their data portfolio into specific vertical markets such as healthcare/life scienc

70、es that have a large tech footprint.IDC expects this great data grab to continue for the next several years through partnering and outright acquisitions of additional data assets that providers believe will improve their competitive position.Associated Drivers The The digitadigital business imperati

71、ve l business imperative Competitiveness and outcomes Shifting Shifting tech regulatory landscape tech regulatory landscape Navigating risk and opportunity Geopolitical Geopolitical turbulence turbulence Sovereignty under emerging fragmentation Contributing/Complementary Predictions By the end of 20

72、24,80%of large organizations will have extended their DLP deployments to GenAI environments to prevent privacy violations and data breaches(see Prediction 5 in IDC FutureScape:Worldwide Future of Trust 2024 Predictions,IDC#US51293523,October 2023).By 2025,75%of service providers will offer generativ

73、e AI tools,data models,and other services for simulation and advisory on which industry ecosystem partners to work with per initiative(see Prediction 3 in IDC FutureScape:Worldwide Future of Industry Ecosystems 2024 Predictions,IDC#US50217123,October 2023).By 2026,the proliferation of data from GenA

74、I and other key digital initiatives will result in 25%of the G2000 organizations introducing or elevating the role of chief AI officer to the C-suite(see Prediction 3 in IDC FutureScape:Worldwide Digital Business Strategies 2024 Predictions,IDC#US50120323,October 2023).By 2027,70%of the healthcare i

75、ndustry will leverage GenAI to address data and workflow fragmentation across care settings to improve diagnosis and patient safety to scale care anywhere(see Prediction 6 in IDC FutureScape:Worldwide Healthcare Industry 2024 Predictions,IDC#US50105223,October 2023).By 2028,natural language becomes

76、the most widely used programming language,with developers using it to create 55%of net-new applications(see Prediction 7 in IDC FutureScape:Worldwide Developer and DevOps 2024 Predictions,IDC#US50136023,October 2023).IT Impact Assumptions about the ownership/provenance of data used by AI functions i

77、n hardware,software,and services offerings may be subject to change on short notice.Changes in ownership for critical data sets may alter the benefits/risks of selecting ITOps and function/industry-specific solutions while increasing the potential for lock-in.2023 IDC#US50435423 9 Guidance Prioritiz

78、e and implement internal and third-party data use/sharing guidelines for all IT and business data that includes commitments on guaranteeing long-term access to data,regardless of ownership changes.Make the security of data sources a top KPI,with an emphasis on both encouraging the use of open source

79、 data(properly vetted and indemnified)where possible and adopting a data control system that enables timely shifting to new data sets if required.Prediction 5:Through 2026,the Underfunding of Skills Initiatives Compared with Products/Services Spend Will Prevent 65%of Enterprises from Achieving Full

80、Value from AI,Cloud,Data,and Security Investments Amid worsening IT skills shortages,enterprises continue to struggle to get the right people with the right skills into the right roles for which 84%of global IT professionals say that IT training is now a strategic imperative(source:IDCs IT Skills Su

81、rvey,July 2023).Without skilled professionals working in AI,cloud,data,security,and other emerging specialties,initiatives involving any of these technologies will stall or fail.However,knowing that engaging and continuous IT training programs are important is not the same as adequately funding them

82、.To stay competitive in this chaotic market,organizations must give IT training more than lip service.Yes,IT training software is enjoying steady growth,but IT training spending is not growing as fast as overall IT spending(source:IDCs IT Training Spending Guide,September 2023)a fact that will preve

83、nt organizations with inadequate training initiatives from garnering value from new technologies.Ironically,the advent of one of those technologies namely,generative AI may help enterprises train tech workers more efficiently on fast-changing technologies.It is unlikely,however,to be enough to help

84、underfunded training efforts skill,reskill,and upskill the employees they want to deploy to their most important tech-fueled projects.Inadequate training in AI,cloud,data,security,and emerging tech fields will directly and negatively impact enterprise efforts to succeed in efforts that rely on such

85、technologies.IDC predicts that,through 2026,underfunded skilling initiatives will prevent 65%of enterprises from achieving full value from those tech investments.Associated Drivers Dynamic Dynamic work and skills requirements work and skills requirements New work mode era Cybersecurity and Cybersecu

86、rity and risk risk Building resilience against multiplying threats The The drive to automate drive to automate Maximizing efficiency and new opportunities Contributing/Complementary Predictions By 2024,65%of CIOs will face pressure to adopt digital tech such as GenAI and deep intelligence,but limite

87、d IT support will diminish the benefits and heighten risks(see Prediction 2 in IDC FutureScape:Worldwide CIO Agenda 2024 Predictions,IDC#US51294523,October 2023).Driven by rising digital talent shortages,over 50%of G2000 will need to increase talent development spending substantially to execute digi

88、tal operations road maps and achieve ROI targets by 2024(see Prediction 2 in IDC FutureScape:Worldwide Future of Operations 2024 Predictions,IDC#US48535322,October 2023).By 2026,two-thirds of cloud applications will use AI,leaving 80%of global organizations to struggle with finding enough skilled AI

89、 professionals to continually manage and update them 2023 IDC#US50435423 10(see Prediction 6 in IDC FutureScape:Worldwide Cloud 2024 Predictions,IDC#US51290923,October 2023).By 2026,90%of knowledge workers will see AI augmenting a portion of their workflow,resulting in the need for organizations to

90、reskill all employees for the next age of digital business(see Prediction 9 in IDC FutureScape:Worldwide Digital Business Strategies 2024 Predictions,IDC#US50120323,October 2023).By 2026,the differential in the velocity of tech vendors releases and tech users adoption of AI-driven data and analytics

91、 software will double spending on reskilling and change management(see Prediction 6 in IDC FutureScape:Worldwide Data and Analytics 2024 Predictions,IDC#US51295223,October 2023).By 2027,80%of G1000 organizations will mitigate IT skills shortages through use of digital adoption platforms and GenAI(se

92、e Prediction 9 in IDC FutureScape:Worldwide Future of Work 2024 Predictions,IDC#US49963723,October 2023).IT Impact With underfunded skilling initiatives,IT organizations find it increasingly difficult to plan for further enhancements and customization of their systems,slowing down the digital transf

93、ormation process.Companies that fail to keep their IT skills pool up to date are more susceptible to problems such as security breaches,cloud overspending,and AI data compliance issues.Without the right skills and expertise inside and outside the IT department,the business(regardless of industry)wil

94、l struggle with delivering maximum value to customers and will thus increase competitive risks,as opposed to other players with a stronger tech-savvy talent pool.Guidance Make use of tools,and establish a plan to understand the current state of your skills pool before planning for future skilling in

95、itiatives.Prior due diligence and information are the enablers for a more assertive learning and development plan.Treat learning and development initiatives as key components of your organizations transformation plan,with a defined budget,stakeholders,and full alignment with your technology adoption

96、 road map.Foster a lifelong learning culture in the organization to incentivize knowledge sharing and mentoring beyond formal training programs.Learning is part of the day-to-day job,with the company providing the tools and headspace for such initiatives to happen.Prediction 6:By 2025,40%of Service

97、Engagements Will Include GenAI-Enabled Delivery,Triggering a Shift in Human-Delivered Services for Strategy,Change,and Training to Prepare Organizations for AI Everywhere GenAI will disrupt how service providers deliver services to their customers and will also be a tool to enrich and enhance their

98、value stream.The emergence of the technology gives rise to an opportunity for the services industry to increase efficiency,streamline their processes,deliver innovative solutions at a faster pace,reduce costs by automating routine and time-consuming tasks,and meet the evolving demands of its digital

99、-native customers.If implemented well,GenAI will also foster seamless interactions between employees and IT systems,which helps service providers resolve complex issues quickly and optimize processes,resulting in improved efficiency and productivity.With a responsible and human-centric approach that

100、 amplifies and complements human capabilities rather than replace them,GenAI can potentially drive transformational change for the services industry.2023 IDC#US50435423 11 Many services providers have been experimenting with GenAI technology for years internally with early-adopting clients and exter

101、nally with their ecosystems of technology and academic partners in preparation for the very inflection point that we are now seeing in the market.For example,business process service providers are developing chatbots that assist human agents and interact with end users by generating personalized res

102、ponses to natural language questions based on large volumes of content.Application development service providers are incorporating GenAI into QA testing platforms to assist with test case and code snippet generation.The pervasiveness of embedded GenAI in service delivery will vary by service line,bu

103、t given the accelerating pace of adoption of GenAI capabilities by providers across business services,IT services,and digital and operational technology(OT)services,we expect that GenAI-enabled delivery will be present in at least 40%of service engagements in the next two years.IDC surveys of IT dec

104、ision makers,which have been conducted monthly throughout 2023,show rising interest in the exploration of GenAI use cases and the investment in GenAI technologies.According to IDCs Future Enterprise Resiliency and Spending Survey,Wave 6,IT consultants and systems integrators stand out as the second-

105、most strategic set of vendors(following closely after public cloud providers)that organizations will turn to for their GenAI initiatives.With the benefit of their experience from early adoption and investments in building and scaling GenAI expertise,IT service providers are positioning themselves to

106、 act as trusted advisors to help organizations set reasonable expectations for what GenAI can and should do for their businesses and help them develop road maps for adopting and managing GenAI solutions across the enterprise.The survey indicated that business consultants ranked lower than IT consult

107、ants and most other technology providers as strategic partners for GenAI technology adoption.However,business consulting service providers are also well placed to support organizations that are seeking to make decisions about how,where,and why they can bring GenAI into their organizations.While orga

108、nizations are mostly considering the technical side of implementing GenAI,the risk,skills,and adoption issues are more concerning and have the potential for greater impact.Business consulting service providers excel at working through the implications for GenAI based on a clients context and goals,s

109、o their clients get the greatest usage and outcomes from these tools with the least potential issues.The three most important roles that business consulting service providers take on to support their clients are advisor,cheerleader,and risk sentinel.As an advisor,they support clients to identify the

110、 areas where GenAI will have the greatest impact and highest adoption rates,through internal and external applications.The cheerleader is a change manager,helping to refine roles altered by GenAI,and a skills developer for the same staff.The risk sentinel advises their clients on the potential risks

111、 associated with GenAI tools such as bias and toxicity,unplanned capabilities,data hallucinations,data leakage,lack of transparency,and copyright controversies.Associated Drivers AI AI everywhere everywhere Generative AI takes the spotlight The The drive to automatedrive to automate Maximizing effic

112、iency and new opportunities Dynamic Dynamic work and skills requirementswork and skills requirements New work mode era Contributing/Complementary Predictions By 2025,two-thirds of enterprise organizations will leverage GenAI to assist in all phases of print services vendor evaluations and contract n

113、egotiations(see Prediction 1 in IDC FutureScape:Worldwide Imaging,Printing,and Document Solutions 2024 Predictions,IDC#US51283923,October 2023).2023 IDC#US50435423 12 By 2025,the G2000 that invest in training IT staff to effectively use GenAI prompts for IT operational tools improve existing ITOps t

114、eam productivity by 30%due to greater cross-persona collaboration(see Prediction 3 in IDC FutureScape:Worldwide Future of Digital Infrastructure 2024 Predictions,IDC#US50401023,October 2023).By 2027,due to increased focus on climate risk,80%of all sustainability-related service engagements will incl

115、ude a climate risk component,a 30%increase from the present(see Prediction 5 in IDC FutureScape:Worldwide Sustainability/ESG 2024 Predictions,IDC#US51294923,October 2023).IT Impact IT leaders will need to evaluate their services providers expertise and approach to leveraging GenAI for service delive

116、ry,potentially before they have had a chance to fully consider their own organizations strategy and business objectives for AI.IT leaders will need expertise to lay the foundation for GenAI adoption,including establishing a responsible AI policy,creating an AI strategy and road map,designing an inte

117、lligence architecture,and preparing programs for staff training and reskilling.Whether GenAI adoption is driven by IT or business,stakeholder alignment is critical to ensuring that solutions are built with the right business outcomes in mind while addressing IT architecture concerns.Integrating GenA

118、I into business workflows will also almost certainly require some reengineering of business processes,in addition to change management for employees who will be interacting with a new and disruptive technology.Guidance Ask pointed questions about your services providers plans to incorporate GenAI ca

119、pabilities into your current and future engagements,including how your data and IP will be protected,how your delivery team may change,how pricing will be impacted,and how service quality and performance will be maintained(or improved)when GenAI is being used.Seek advice from service providers that

120、have not only developed GenAI expertise through their R&D and thought leadership work,client engagements,and ecosystem partnerships but have also gained firsthand experience from going through their own internal GenAI adoption and reskilling their workforces.Consider services providers with whom you

121、 already have an established relationship,as their existing knowledge of your business objectives,IT architecture,and organizational culture may accelerate the process of identifying and developing impactful GenAI solutions.Seek out partners that can translate between technical and business concepts

122、 to align stakeholder priorities and expectations and can also communicate effectively with employees through workshops and change management programs.Prediction 7:In 2027,80%of Infrastructure,Security,Data,and Apps Will Rely on Advanced Control Platforms for Coordinated AI-Enabled Service Delivery,

123、But Only Half of Enterprises Will Use Them Effectively One of the most significant ongoing changes in the IT industry is the expanding delivery of technology from silicon to code and data to connectivity via as-a-service business models.This shift from delivering technology by component(hardware ass

124、embly,software file transfer,and command line interface CLI administration)to delivering technology by wire(self-contained systems,software-defined functions,cloud-based control platforms)will become even more critical as IT providers embed GenAI and general AI capabilities into their offerings.2023

125、 IDC#US50435423 13 When used effectively,advanced control platforms:Improve digital business resiliency.Ensure faster access to innovative technologies.Lower operational overhead.One of the most challenging tasks for IT teams in the next several years will be navigating the maturation of control pla

126、tforms as they gradually evolve from addressing a few basic systems to becoming a standard platform that orchestrates operations across infrastructure,data,AI services,and business applications/processes.Lack of standardization,failure to invest in training/reskilling operations and development team

127、s,and pressure to adopt incompatible control platforms for different use cases are all major barriers to successful use.Associated Drivers The The digital business imperative digital business imperative Competitiveness and outcomes Everything as a Everything as a service intensifies service intensif

128、ies Transforming models to drive change The The drive drive to to automate automate Maximizing efficiency and new opportunities Contributing/Complementary Predictions By the end of 2024,80%of large organizations will have extended their DLP deployments to GenAI environments to prevent privacy violat

129、ions and data breaches(see Prediction 5 in IDC FutureScape:Worldwide Future of Trust 2024 Predictions,IDC#US51293523,October 2023).By 2025,40%of global organizations will have a digital platform in place for ecosystem operation,driving a 10%higher data capitalization rate than those that do not take

130、 this approach(see Prediction 1 in IDC FutureScape:Worldwide Future of Industry Ecosystems 2024 Predictions,IDC#US50217123,October 2023).By 2025,adoption of GenAI-driven data intelligence and integration software will result in a new automated data control plane,resulting in at least a 25%increase i

131、n data engineers productivity(see Prediction 3 in IDC FutureScape:Worldwide Data and Analytics 2024 Predictions,IDC#US51295223,October 2023).By 2026,65%of life science companies will modernize digital infrastructure,adopting unified control planes to optimize,scale intelligence-driven innovation,and

132、 ensure regulatory compliance(see Prediction 3 in IDC FutureScape:Worldwide Life Sciences 2024 Predictions,IDC#US51290923,October 2023).By 2027,70%of enterprises adopt a composable,internal-facing app platform empowering developers to source and personalize discovery of development-related products,

133、services,and infrastructure(see Prediction 8 in IDC FutureScape:Worldwide Developer and DevOps 2024 Predictions,IDC#US50136023,October 2023).By 2028,100%of cloud-based media factories for content creation,production,distribution,and monetization will be adopted by 25%of the broadcast industry(see Pr

134、ediction 10 in IDC FutureScape:Worldwide Media and Entertainment 2024 Predictions,IDC#US50159423,October 2023).IT Impact Effective use of AI-enhanced control platforms requires greater confidence in data security and usage based on secure connectivity and clear data-sharing practices with technology

135、 partners.The need to keep abreast with and fully leverage the array of new functions that AI-enhanced control platforms introduce leads to decision paralysis.2023 IDC#US50435423 14 AI-enabled resource automation and optimization benefits promised by AI-enhanced control platforms are seen as a threa

136、t by critical IT staff members who fear that their only value is to train their replacement.Guidance Adopt more flexible connectivity and security systems that make it easier to enable the connectivity and data sharing required to take full advantage of AI-enhanced control platforms.Require provider

137、s to enable open access to the network,performance,and configuration data generated by their systems,and encourage the sharing of relevant data across providers.Refocus IT operational practices on the buildout of strategic skills(e.g.,security,prompt engineering,user experience,business analysis,and

138、 IT automation)that ensure effective use of AI-enhanced control platforms.Prediction 8:By 2026,All New IT Brands,Products,and Services Targeting Underserved Customer Segments/Personas Will Be Based on Tight Integration of Diverse AI Services That Deliver New Capabilities at Lower Costs Contrary to t

139、he beliefs of many individuals and business leaders,GenAI did not spontaneously generate in late 2022 with the announcement of the GPT-3.5 series from OpenAI.And spending on AI in general did not suddenly rise from nothing.In fact,in IDCs August 2023 GenAI Awareness,Readiness,and Commitment Survey,e

140、ven the core group of companies that are already heavily investing in GenAI(20%of all respondents)stated that GenAI accounted for just one-third of all AI investments.For years,theyve invested heavily in predictive and interpretive AI.One key challenge for CIOs and CTOs will be to ensure that the hi

141、gh profile of GenAI doesnt delay/derail existing AI investments.GenAI investments must act as a multiplier for a more rapid creation of AI capabilities across the enterprise.Investments in skills,orchestration,and data logistics to enable GenAI must also be used to improve the effectiveness of all o

142、ther AI solutions.IT providers,themselves,will be among the first companies to contemplate,trial,and bring to production fully converged AI solutions that allow them to address new uses cases and customer personas at significantly lower price points.CIOs and CTOs can benefit from paying close attent

143、ion to these developments in two ways:first,by moving quickly to leverage new capabilities when they emerge,and second,by learning from these efforts as they extend their own digital business offerings with full AI convergence.Associated Drivers The The digital business imperative digital business i

144、mperative Competitiveness and outcomes Everything as a Everything as a service intensifies service intensifies Transforming models to drive change The The drive to automate drive to automate Maximizing efficiency and new opportunities Contributing/Complementary Predictions After a temporary focus on

145、 GenAI,60%of enterprises will refocus on mandating automation strategies based on outcomes rather than specific technologies by 2025(see Prediction 4 in IDC FutureScape:Worldwide Artificial Intelligence and Automation 2024 Predictions,IDC#AP50341323,October 2023).By 2025,40%of organizations will be

146、selling to,engaging with,or provisioning on-demand services through digital ecosystems to enable new business models powered by AI 2023 IDC#US50435423 15 everywhere capabilities(see Prediction 6 in IDC FutureScape:Worldwide Digital Business Strategies 2024 Predictions,IDC#US50120323,October 2023).Dr

147、iven by the potential of GenAI,40%of organizations will reskill their customer care agents to take up different roles to deliver better business value by 2026(see Prediction 7 in IDC FutureScape:Worldwide Services 2024 Predictions,IDC#US51284223,October 2023).IT Impact Efforts to deploy full AI conv

148、ergence solutions across many locations expose limits in existing processes for governing remotely deployed infrastructure and the use of collected data.Insufficient focus on skills,AI governance,and date use guidelines emerge as the greatest barriers for developing full internal AI convergence serv

149、ices.Guidance Look for AI-enhanced control platforms that focus on extending the full spectrum of AI services to remote locations,not just point solutions for functions such as GenAI or machine vision.CIOs must design and implement an appropriate governance for the deployment and use of vision techn

150、ology in the enterprise and its ecosystems.Prediction 9:By 2027,60%of F500 Firms Will Leverage Ubiquitous Experiences,Edge Analytics,and GenAI to Enable Customers to Create Their Own Experience Journeys,Improving Customer-Desired Outcomes and Values Unlike other innovations,since the short time that

151、 GenAI has burst onto the scene,the capability has garnered significant interest from business and technology leaders alike.ChatGPT essentially democratized an intelligence-first business mindset.IDCs July 2023 Future Enterprise Resiliency and Spending Survey found that close to half of all enterpri

152、ses globally are doing some initial exploration of potential use cases.A further 29%of companies are investing significantly in GenAI in 2023.Further,a greater proportion of customer engagement and intelligence continues to move to the edge,with customer-controlled devices/systems now capable of exe

153、cuting decisions on behalf of the customer.For example,Samsungs connected appliances can flag a service issue,communicate with Samsung Care+for diagnosis,and even apply fixes proactively(where applicable)with limited human intervention.The rise of GenAI amplifies use cases where more complex decisio

154、n making and even the curation(or generation)of new(i.e.,not predefined by the enterprise)journey pathways can be generated in a low-friction manner by the customer.GenAI enables the engagement layer to mature from imperative interfaces to declarative interfaces,allowing customers to request their p

155、referred experience journeys,outcomes,and so forth in natural language.Shopifys Sidekick,for example,is a GPT-based assistant that is equal parts advisor,designer,and content creator.Sidekick allows employees to simply ask the platform to complete a task,whether its adjusting storewide product price

156、s,changing store themes,or analyzing sales trends.While this example is employee facing,it is equally applicable and extensible to a customer-controlled/owned device enabled with GenAI LLMs.For example,in a service journey,GenAI LLMs on customer-owned devices can analyze the customers behavior/inten

157、t,preferences,and past activity to generate highly contextualized follow-up emails and manage contextual support interactions.It can also act as a 24 x 7 virtual assistant offering tailored recommendations and reminders,which results in higher(and almost continuous)engagement.In a sales scenario,cus

158、tomers can direct the LLM to provide real-time negotiation guidance and predictive insights based on a comprehensive analysis of historical transaction data,usage behavior,and competitive pricing all done autonomously and via pricing/service models and journey pathways that are entirely generated fr

159、om the lens of the customer.2023 IDC#US50435423 16 Associated Drivers AI AI everywhere everywhere Generative AI takes the spotlight The The drive to automatedrive to automate Maximizing efficiency and new opportunities The The digital business imperativedigital business imperative Competitiveness an

160、d outcomes Contributing/Complementary Predictions By 2025,40%of top-tier retailers will lean into decentralized infrastructure to put data at the edge to reduce costs and attain better security and operational control(see Prediction 2 in IDC FutureScape:Worldwide Retail 2024 Predictions,IDC#US512800

161、23,October 2023).By 2026,organizations that have embraced edge-native platforms will extract three times more value from data and deploy projects four times faster than those with traditional core,edge,and cloud resources(see Prediction 8 in IDC FutureScape:Worldwide Future of Operations 2024 Predic

162、tions,IDC#US48535322,October 2023).Pushed by data-driven market models and patient care needs,40%of life science companies will adopt integrated solutions combining connected medical devices and digital health platforms by 2026(see Prediction 4 in IDC FutureScape:Worldwide Life Sciences 2024 Predict

163、ions,IDC#US51290923,October 2023).With GenAI as a catalyst,by 2027,40%of enterprises will rely on interwoven IT architectures across cloud,core,and edge to support dynamic,location-agnostic workflow priorities(see Prediction 9 in IDC FutureScape:Worldwide Future of Digital Infrastructure 2024 Predic

164、tions,IDC#US50401023,October 2023).By 2026,with the accelerated adoption of GenAI,35%of enterprises will enhance edge computing use cases with contextual experience further aligning business outcomes with customer expectations(see Prediction 6 in IDC FutureScape:Worldwide Future of Connectedness 202

165、4 Predictions,IDC#US51287523,October 2023).IT Impact Content Content management evolutionmanagement evolution:With GenAI auto-tagging and providing metadata for newly generated content,CMS and DAM systems will need to be more dynamic and adaptable.Security Security enhancemenenhancements ts:As custo

166、mer-controlled devices/systems execute decisions,there will be a heightened need for advanced security protocols to safeguard data and ensure privacy.Integration Integration challengeschallenges:Merging traditional systems with GenAI models will require seamless integration efforts to ensure a smoot

167、h customer experience.Business Impact Increased Increased customer loyaltycustomer loyalty:The shift from unilateral to bidirectional customer-curated personalization will foster a deeper sense of loyalty as customers feel a sense of ownership over their experiences.Enhanced SEO Enhanced SEO scoress

168、cores:As customers share their curated experiences within their social networks,businesses will benefit from increased organic reach and improved SEO scores.Deeper Deeper customer engcustomer engagement:agement:With GenAI-enabled devices,businesses will witness customers spending more time on their

169、platforms,experimenting with different pathways,and curating their experiences.DataData-driven insightsdriven insights:Every customer interaction,pathway selection,and preference become a valuable data point,offering businesses granular insights into evolving customer preferences that can be wired b

170、ack into the enterprise across functions,from product design to customer support/service.2023 IDC#US50435423 17 Guidance Invest in GenInvest in GenAI AI trainingtraining:Ensure that both IT and marketing teams are well-versed with the capabilities and potential of GenAI to maximize its benefits.Prio

171、ritize Prioritize customer data privacycustomer data privacy:As customers curate their experiences,it is imperative to ensure that their data is protected and used ethically.Collaborate Collaborate across departmentsacross departments:Foster a culture of collaboration between IT,marketing,and custom

172、er service teams to ensure a unified approach to bidirectional customer experiences.Prediction 10:By 2028,80%of Enterprises Will Integrate Low Earth Orbit Satellite Connectivity,Creating a Unified Digital Service Fabric That Ensures Resilient Ubiquitous Access and Guarantees Data Fluidity A wireless

173、-first approach has become embedded in IT planning as organizations look at the best ways to transform their connectivity strategy.The outcome is a scalable and future-proof mix of wireless access technologies(4G/LTE,5G FWA NSA and SA,MPN,satellite,etc.)to deliver on the promise of the digital busin

174、ess model.Communications SPs are now making strategic investments to build out next-generation digital infrastructure and expand the reach of their services.LEO satellite services are prominently featured in communications SPs unified wireless plans for delivering satellite connectivity for consumer

175、 and business services in which the deployment of fixed-line broadband or terrestrial wireless is not economically feasible.The opportunity to connect the unconnected and bridge the digital divide is potentially vast with evolving business models.According to the International Telecommunication Unio

176、n(ITU),an estimated 2.9 billion people,representing 35%of the worlds population,do not have internet access.Alliances with long-term implications will become more significant through the pairing of satellite operators constellations in LEO with communications SPs mobile and fixed networks.LEO satell

177、ites offer a cost-effective option to conventional satellite connectivity that face challenges with cost,signal delay,and latency beyond 500ms for many cases.LEO satellite services offer latency in the range of 2050ms because of their lower orbit(3002,000km above the Earth),and their smaller footpri

178、nt makes them a more viable and cost-effective connectivity option.The technology is also underpinned by significant efforts in the 3GPP standards body to enable 5G systems support for non-terrestrial networks(NTNs),helping accelerate the launch of monetizable satellite-based 5G services and helping

179、 support forward plans for 6G non-terrestrial networks with the IEEE standards body planning a special issue publication targeted for late 2023/early 2024.Some of the notable communications SPs and satellite operator partnerships announced are T-Mobile with SpaceX(Starlink);Verizon with Amazon(Kuipe

180、r);Orange with OneWeb;AT&T,Rakuten,and Vodafone,each with AST SpaceMobile;NTT Ltd.with SES;Qualcomm with Iridium;and Apples partnership with Globalstar.These partnerships are in various stages,with some further advanced with joint road map development to evolve their services beyond terrestrial cell

181、ular to LEO satellite services that include high-speed internet,4G/LTE and 5G broadband backhaul,and Internet of Things(IoT)services.In addition,communications SPs are integrating LEO satellite connectivity for critical and emergency communication events such as hurricanes,wildfires,flooding,or eart

182、hquakes,which often cause the destruction of or damage to terrestrial mobile network equipment,resulting in service outages.LEO satellite technology is in the early stages of its transformative journey,which will see constellations expanding and industries exploring new applications.Understandably,t

183、here will be challenges as more satellites are launched over the next few years and as congestion and the potential for catastrophic collisions and dangerous space debris become potential concerns.However,2023 IDC#US50435423 18 the positives are too compelling and will accelerate the deployment of L

184、EO satellites,as government subsidies have become more available to operators.Coupled with spectrum availability,such as the FCC proposing to add a mobile satellite service allocation on some terrestrial flexible-use bands,LEO satellite operators can apply to access terrestrial spectrum if certain p

185、rerequisites are met.The long-term benefits of LEO satellites will help redefine global connectivity for billions of consumers and millions of commercial customers around the world.Associated Drivers The drive to automate The drive to automate Maximizing efficiency and new opportunities The The d di

186、gital igital b business usiness i imperativemperative Competitiveness and outcomes Contributing/Complementary Predictions With as-a-service models extending to space in multiple orbits,by 2025,30%of states and provinces will use satellite-based internet connectivity to bridge the digital divide and

187、reach rural areas(see Prediction 3 in IDC FutureScape:Worldwide Smart Cities and Communities 2024 Predictions,IDC#US50296623,October 2023).By 2026,25%of water distribution companies will have operationalized multispectral satellite imaging and AI-powered computer vision,improving the efficacy of lea

188、k detection by a factor of seven(see Prediction 7 in IDC FutureScape:Worldwide Utilities 2024 Predictions,IDC#US50062023,October 2023).By 2027,85%of the G2000 will rely on cloud providers and connectivity partners for zero touch provisioning and zero trust security at the edge,reducing the burden on

189、 IT staff by two times(see Prediction 4 in IDC FutureScape:Worldwide Cloud 2024 Predictions,IDC#US51294723,October 2023).By 2028,over one-third of industrial organizations will have deployed private LTE or 5G networks to at least 30%of their operational sites to reduce up-front costs and improve dat

190、a collection(see Prediction 6 in IDC FutureScape:Worldwide Future of Operations 2024 Predictions,IDC#US48535322,October 2023).IT Impact Organizations in specific verticals should explore applications that require a lower-latency satellite connectivity option in the range of 2050ms,as part of their h

191、igh-speed access choice for remote locations.Long-term alliances are increasing through the pairing of satellite operators constellations in LEO with communications SPs mobile networks to extend the reach of their unified digital wireless fabric.LEO satellites will offer global capabilities for the

192、deployment of IoT and MPN solutions,but they will require custom integration capabilities.Business Impact Cost-effective LEO satellite connectivity will help bridge the digital divide and open new economic opportunities for remote areas of the world,including new business markets for communications

193、SPs and commercial applications.LEO satellite connectivity will become increasingly prevalent because of the continued standardization effort in the 3GPP ensuring that 5G systems integrate NTNs,such as high-altitude platform systems(e.g.,LEO,MEO,and GEO satellites),with terrestrial options.Communica

194、tions SPs will evolve their network beyond terrestrial cellular with LEO satellite services that include direct satellite to cellular,high-speed internet,4G/LTE and 5G broadband 2023 IDC#US50435423 19 backhaul,and IoT.This technology innovation will drive competitive pricing integrated under one bil

195、l for network connectivity services.A regulatory approach to LEO satellites across the countries will also be a determining factor for commercial availability and operational relations(e.g.,interconnection,partnerships)between terrestrial operators and LEO operators.Guidance Identify optimal applica

196、tions for low-orbit connectivity,with guidance from either satellite operators or communications SPs.Latency and reliability should be key considerations.For communications SPs,move quickly to line up the mobile networks with satellite operators constellations in LEO.The right partnership will be cr

197、ucial for the time to market of voice,data,and broadband use cases as well as wholesale capacity solutions.Explore IoT and MPN applications that dont require an always-on,mission-critical capability for remote and geographically distributed sites.ADVICE FOR TECHNOLOGY BUYERS The fast-approaching shi

198、ft to an emphasis on AI implementation and optimization will affect all technology investment and staffing decisions,and it will dominate CIOs and CTOs agendas for the next several years.Balancing high-visibility technological innovations,such as GenAI,with broader IT industry changes will challenge

199、 CIOs to become even more tech-savvy and visionary leaders who can merge the domains of technology and business.The AI pivot within the IT Industry itself along with IT providers responses to near-term turbulence,ongoing data portfolio building pressures,and the necessary transformation of their own

200、 business models will make CIOs and CTOs jobs more challenging.It will also make strategic technology partnering decisions more critical but also more subject to rapid change.Pay close attention to how IT providers design,develop,and deliver IT products/services that employ GenAI and how other AI te

201、chnologies incorporate data governance and accommodate emerging digital sovereignty concerns.Adjust the evaluations of IT providers and the promised benefits of adopting their solutions to require continual demonstration of business revenue improvement,not just improvements in individual and process

202、 productivity.Weigh technology providers based upon the pace at which they:Embed AI/automation into their own solutions,not just as value-added extensions but also as inherent elements in the solutions themselves.Shift from offering AI enhancements within individual products to delivering fully conv

203、erged AI offerings across their portfolios.Commit to enabling close tracking and control of costs and tying investments to actual benefits in productivity,revenue growth,and competitive position.2023 IDC#US50435423 20 EXTERNAL DRIVERS:DETAIL AI Everywhere Generative AI Takes the Spotlight Descriptio

204、n:Description:With intelligence becoming the primary source of value creation,we are on the verge of the Intelligence Revolution,in which artificial intelligence(AI)and automation-oriented technology will be the main accelerators of business change.In the realm of AI everywhere,generative AI(GenAI)e

205、merges as a transformative force,potentially revolutionizing the future.This branch of artificial intelligence enables a machine-driven autonomous creation of new content,from images to music to even written text,with remarkable accuracy.Early applications of GenAI have showcased its potential in fi

206、elds such as creative arts,content and code generation,and personalized recommendations.However,it also raises concerns regarding bias and privacy:AI algorithms can inadvertently perpetuate biases and pose threats to personal data.As a result,regulation becomes crucial to ensure responsible and ethi

207、cal use of GenAI.Despite these challenges,the possibilities are vast,ranging from improved customer experiences to innovative problem solving.Harnessing the power of GenAI and navigating its associated complexities has the potential to shape the future of industries and drive advancements in the AI-

208、driven world.Context:Context:Businesses are already jumping to get a piece of the AI pie,afraid to miss out on the opportunities it presents.Although we are in the early days,monetization and scale of AI solutions are expected to evolve rapidly.However,this comes during a time of relative economic u

209、ncertainty and increasingly constrained IT budgets.Furthermore,AI is not without risks,especially when it comes to ethical AI and data privacy,and companies need to carefully consider the best use cases in order to implement AI effectively.The Drive to Automate Maximizing Efficiency and New Opportun

210、ities Description:Description:Broader automation use cases beyond just generative AI are now ubiquitous.Now that data is embedded in the core of strategic capability for every organization,automation is critical to scaling a digital business and is evident in three domains:IT automation,process auto

211、mation,and value stream automation leading to autonomous operations,digital value engineering,and innovation velocity.Industrial organizations have spent the past few years evolving toward the Fourth Industrial Revolution(Industry 4.0)through the use of industrial automation and intelligence.Thought

212、ful implementation is more important than ever as data becomes embedded in the strategic core of every organization.Automation technologies such as robots and drones are being used increasingly in the military and healthcare sectors.Given this boost in automation,data is increasingly precious,and pr

213、ivacy must be prioritized and security enhanced.In some cases,automation has also led to concerns over the future of work whether it will enhance or take away.Context:Context:Businesses are rethinking how to employ automation to maximize operational efficiency from automating assembly in manufacturi

214、ng to identifying opportunities for food waste reduction in hospitality to improving customer experience in digital banking.IT will need to continue to assess new technologies and approach automation investments strategically,both within the walls of the organization and in the field.Among industria

215、l organizations,IT/OT convergence will necessitate shared responsibility across teams for automation priorities and implementations.Economic Uncertainty IT Malaise and Market Volatility Description:Description:The global markets have been thrown into a state of prolonged uncertainty.The era of low i

216、nterest rates and easily accessible corporate debt has abruptly transitioned into an 2023 IDC#US50435423 21 economic slowdown,accompanied by a surge in interest rates.Despite monetary policy interventions,inflation persists due to the compounding effects of global conflicts and supply chain constrai

217、nts.As a result,economic growth is stifled,hindered by soaring commodity prices and mounting sovereign debt.In certain cases,this instability has even escalated into recessions.These conditions have created a situation of IT malaise,especially in the United States and Europe in early 2023,as uncerta

218、inty makes budget planning and forecasting challenging for executives.Many IT leaders are now bracing for an onslaught of AI-driven technology while battling uncertainty about which current expenditures and assets they should keep or discard.While technological innovation may be a rejuvenator,it fur

219、ther contributes to disruption and uncertainty in todays already-volatile economic environment.Context:Context:Given uncertainty around inflation and interest rates,C-suite executives need to strategically plan IT spending.Most executives view IT as a deflationary measure but striking this balance b

220、etween digital investments and cost management becomes increasingly challenging given volatile conditions.With generative AI,IT executives further find themselves caught up in questions of strategic spending.While many IT organizations initially focused on constraining new expenditures and optimizin

221、g the use of existing assets,they now find themselves grappling with how to invest in AI and other drivers of innovation while reining in costs.Geopolitical Turbulence Sovereignty Under Emerging Fragmentation Description:Description:The geopolitical landscape in todays world is continuously evolving

222、.The Russia-Ukraine War accelerated this division in 2022,with many companies finding themselves in a situation where they were forced to side along geopolitical lines according to customer and government demands.Other conflicts continue to brew,with the United StatesChina tensions/conflict in Taiwa

223、n being perhaps the most closely watched.Domestic-level conflicts are also brewing that can have an impact on the IT sector.In several countries around the world,there are future upcoming elections that can have vast implications on businesses,such as their effect on populist protectionism and imple

224、mentation of ESG,for instance.In addition,the energy crisis in Europe was sparked by the Russia-Ukraine War,but unstable costs of energy remain a challenge to various countries around the world and will only increase in importance in light of these geopolitical challenges as well as factors such as

225、climate change.Todays geopolitical turbulence therefore has the potential to further advance the emergence of an ever-increasing multipolar order.Context:Context:The uncertain geopolitical landscape is multiplying risks for businesses as they navigate trade fragmentation and a plethora of new regula

226、tions and deal with factors,such as populist protectionism,that reduce their ability to access markets.These conflicts and trade tension lead to supply chain disruptions,restricted imports,and increased cybersecurity risk and therefore increased costs for IT companies reliant on global manufacturing

227、 and distribution networks for essential components.Given this,the IT sector should aspire for diversification of supply chains,bolstered cybersecurity measures,and emerging market solutions.Global Supply Chain Resiliency Push for Diversification Description:Description:Despite gradual easing of sup

228、ply,supply chain disruptions overall continue to impact most markets and resiliency remains a top priority.Whether due to geopolitical issues(Russia-Ukraine Wardriven energy supply scenario,semiconductor chains shifting due to China-Taiwan dynamics,etc.),broader economic concerns,or the impact of de

229、mand volatility on raw material costs(e.g.,access to key components for tech products),the global supply chain remains at a critical inflection point.Furthermore,national economic security,inflation 2023 IDC#US50435423 22 and interest rates,data sovereignty,cybersecurity,and climate change are criti

230、cal factors in determining how to approach the future of supply chains.Many of the old methods have proven ineffective,so companies are looking for new approaches to improve resilience.These include multisource orchestration and multi-scenario adaptation,better visibility and agility,and business pr

231、ocess automation.The global supply chain will persist,and it always does,but policymakers and business leaders are looking to better balance global,regional,and local solutions,shortening supply chains where possible and diversifying to reduce risk.Context:Context:The IT supply chain is especially a

232、ffected by global supply chain policy and volatility.Given the excitement around generative AI especially,GPUs,semiconductors,and other silicon-based technologies are more crucial than ever.As key components for technology products are limited in supply and subject to volatility,businesses will need

233、 to continue to strategize to build resilience and diversification.Cybersecurity and Risk Building Resilience Against Multiplying Threats Description:Description:The era of digital business has resulted in a significant increase in the interconnectedness of devices,people,applications,data,and netwo

234、rks alongside movement of workloads to the cloud.However,this progress has led to a broader vulnerability to cyberattacks.Ransomware attacks have multiplied exponentially,the dark web is teeming with low-cost,high-quality hacking services,and generative AI is threatening with more believable,humanli

235、ke phishing and pretexting attempts.A shortage of skilled cybersecurity professionals presents a continuous challenge for organizations to respond effectively.Cyberattacks have impacted all types of organizations,from governments to universities to businesses,and are oftentimes entangled in geopolit

236、ical motives.The increase in high-profile data breaches is furthermore leading to increased policy interventions regarding privacy and sovereignty.Context:Context:An organization that is unprepared for cyberattacks may suffer various consequences,including data loss,financial implications,harm to th

237、e organizations brand reputation,decreased employee morale,and loss of customers.Cyber-resilience the ability of an organization to anticipate,withstand,recover from,and adapt to any threats to its resources is key for an organization to not only defend against cyberattacks but also prepare for swif

238、t response and recovery to attacks.The Digital Business Imperative Competitiveness and Outcomes Description:Description:A digital business sees value creation based on the use of digital technologies for both internal and external processes,including customer engagement,employee experience,and produ

239、ct andservices development.Building and leading a digital business is imperative for organizations to be competitive.While certain operational aspects may always have a nondigital component,digital businesses prioritize a digital-first strategy that aligns all parts of the business and IT landscape

240、with digital workflows to drive value and growth.The development strategies for both digital and nondigital assets now require leveraging multiple channels for the digital business to obtain support or funding.This places a strong emphasis on providing digital experiences for customers and citizens,

241、employees,and partners and necessitates a shift toward fully digital operating models and resilient supply structures enabled by digital technology.The focus of a digital business is increasingly on delivering measurable outcomes.Businesses that have recognized the value of digital anticipate mainta

242、ining or even increasing their investment in technology,even in times of economic uncertainty.Context:Context:As more and more enterprises embrace digital strategies and technology,they prioritize technology investments that drive innovation or allow for competitive differentiation.Technology is no

243、longer viewed as a tool to keep the business running,but it is the foundation 2023 IDC#US50435423 23 for building new revenue-generating experiences and products.Laggards will need to adapt quickly and develop their digital road maps and embrace a digital business platform.Identifying top digital re

244、venue opportunities that deliver value will be crucial for overall business success and implementation of organizational digital-first strategies.Everything as a Service Intensifies Transforming Models to Drive Change Description:Description:The concept of everything as a service(XaaS)is driving cha

245、nge across all sectors and ecosystems,affecting both the supply side and the demand side of businesses.Organizations are adopting as-a-service models at different speeds out of necessity,but the complex delivery strategies make requirements more complicated and the impacts less predictable.The short

246、er decision cycles enabled by on-demand services allow industry leaders to approach things differently,but the commitment models are fundamentally changing.On the supply side,there is a rising demand and higher customer expectations.As a result,suppliers are compelled to convert and enable their off

247、erings more quickly using a secure servicesbased model.Buyers are now making decisions based on commitments to measured outcomes in terms of optimization,reliance,and financial models.Architecture and solution strategies are now critical to the service provider,where proprietary systems that are bei

248、ng maintained or migrated can materially impact the efficacy of the as-a-service solution.Leaders face the challenge of finding new financial,operational,and governance models that support a successful transition to an as-a-service approach.Critical factors for organizations to thrive through the as

249、-a-service change landscape include solution control,contractual clarity on roles and responsibility,and accountability alignment including geoeconomic assurance and data.Context:Context:To deliver optimally,companies are looking to better manage their as-a-service offerings.Theyre changing product

250、design,delivery,and pricing alongside adjusting management and operations to best optimize as-a-service technology.This is the new model for the tech industry,and suppliers and buyers will need to adapt accordingly.This includes developing cloud-based control to manage provisioning,continuous usage

251、tracking,and architectural efficiency.Dynamic Work and Skills Requirements New Work Mode Era Description:Description:In the wake of COVID-19 pandemicdriven accelerated work transformation,enterprises continue to face dynamic work conditions.These range from lack of skilled employees to codifying mor

252、e flexible ways of working that rely on a broad range of technologies and services.In some regions,most notably in Asia/Pacific,organizations are focused on building more secure and technically sophisticated office environments.In North America,remote and more flexible work models are driving invest

253、ments in technologies that support collaboration across and within disparate work environments.Across this spectrum of work models,organizations are investing in infrastructure,hardware,software,and services to enable and manage increasingly automated ways of working.These include automated remote o

254、nboarding,learning in the flow of work,and use of AI and generative AI to facilitate basic tasks and workflows.While the pandemic drew much needed attention to the employee experience,enterprises have shifted to aligning employee requirements more plainly to strategic business goals.The key challeng

255、e around the globe has been to find or upskill/cross-skill employees to scale and meet the demands of complex,automated work processes.Flexible work models continue to change to become even more agile,with digital workspaces highlighting skills,workforce management,automation,changing demographics,a

256、nd as-a-service talent resourcing.2023 IDC#US50435423 24 Context:Context:New modes of working are now intrinsic to leadership and organizational resilience and go well beyond traditional staff planning methods.They are also having an impact on frontline workers who have historically been neglected i

257、n favor of higher-paid front-and back-office peers.New work models require agile cross-functional teams including HR,IT,LOB,finance,facilities management,and operations to engage top talent and meet client brand expectations.While headlines debate the fate of environmental,social,and corporate gover

258、nance(ESG)initiatives,its clear that environmental concerns will be an embedded element of workplace design and implementation of flexible work models.C-suite leaders and their teams must collaborate to recalibrate work culture,augmentation,and space/place planning to enable more secure,dynamic,and

259、refined work models of the future.Shifting Tech Regulatory Landscape Navigating Risk and Opportunity DescriptDescription:ion:With frontier technologies like generative AI,geopolitical concerns,and cyber-risks,the tech legal landscape is rapidly changing.While the GDPR in the EU is perhaps the most w

260、ell-known of privacy laws,other countries have enacted legislation to ensure that personal information is protected and ethically used,such as Chinas Personal Information Protection Law(PIPL)and Japans Protection of Personal Information Act(APPI).Nations all over the world are considering frameworks

261、 to regulate AI,including the EUs AI Act and the United States AI Bill of Rights.Cybersecurity is top of mind with the United States CIRCIA Act,Japans Basic Act on Cybersecurity,and the EUs Cybersecurity Act.And with ongoing chip wars,countries around the world have mandated domestic production for

262、certain parts of semiconductor manufacturing and banned foreign-created semiconductors in some cases often along geopolitical lines.Tech regulation,however,is not just a blockade but presents an equal amount of opportunity as well.The aforementioned chip laws also incentivize domestic production and

263、 innovative chip manufacturing through tax subsidies.Other strategies such as electric vehicle subsidies are accelerating the green transition across many nations.And larger industry verticals are receiving big boosts,such as Saudi Arabias investments in healthcare technologies.Context:Context:Busin

264、esses must navigate an increasing number of regulatory rules.Even if its not always the primary focus,tech is often a crucial part of these regulations.Most of these rules are intended to hedge against risks,but some are entrenched in geopolitical divides,so those firms that stay ahead of the game a

265、nd build upon resiliency will be best equipped to comply with these regulations.Moreover,regulations and policies are not just restraints they are also often springboards for investment with many regulations proposing tax subsidies and other kinds of incentives.Operationalization of ESG Measuring an

266、d Implementing Sustainability Description:Description:Environmental,social,and governance(ESG),a globally adopted framework supporting actions to achieve sustainability and a better future for all,is gaining more traction than ever.ESG laws are increasing:the EU launched the Corporate Sustainability

267、 Reporting Directive(CSRD)requiring companies to disclose and assure ESG metrics,the SECs climate disclosure requirement is forthcoming,and Japans GX Basic Policy implements an emissions trading scheme and carbon tax.There are also new International Financial Reporting Standards.Given this,many comp

268、anies are actively operationalizing ESG with AI-informed carbon accounting software,carbon budgets,and sustainability requirements into requests for proposals(RFPs)they send to tech suppliers.Many companies now have positions such as chief sustainability officer or are integrating sustainability int

269、o the responsibilities of the C-suite.And many enterprises are replacing redundant faulty and energy-heavy tech with newer,more efficient energy-saving counterparts.Businesses recognize that diversity,equity,and 2023 IDC#US50435423 25 inclusion are positively affecting profits and are therefore impl

270、ementing DEI initiatives to include more women and minorities.In addition,ESG compliance is a form of long-term strategic business risk reduction.Given climate change and instable energy prices,among other risks,ESG helps curb costs and hedge against risks caused by natural disasters and other shock

271、s.Context:Context:ESG is more than just a measure;it is foundational to business purpose and value.Businesses are increasingly beholden to ESG.More and more customers care about whether the companies they deal with behave sustainably and deliver sustainable products and services.ESG can also be a co

272、st-saving measure and hedge against risks.Yet,despite much progress,there is still work to be done,especially in complying with carbon footprint measuring and achieving high-quality data.As laws and regulations as well as investment opportunities amp up around ESG,the IT industry will increasingly r

273、equire green talent and skills and better data modeling of ESG metrics to achieve maximum benefit.LEARN MORE Related Research IDC FutureScape:Worldwide Generative Artificial Intelligence 2024 Predictions(IDC#US51291623,October 2023)IDC FutureScape:Worldwide CIO Agenda 2024 Predictions(IDC#US51294523

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275、ctober 2023)GenAI Awareness,Readiness,and Commitment:A First Look at IT Leaders Expectations and Concerns for Generative AI(IDC#US51262523,September 2023)Critical External Drivers Shaping Global IT and Business Planning,2024(IDC#US51057623,September 2023)IDC Market Glance:Generative AI Technologies

276、and Services,3Q23(IDC#US51256423,September 2023)About IDC International Data Corporation(IDC)is the premier global provider of market intelligence,advisory services,and events for the information technology,telecommunications,and consumer technology markets.With more than 1,300 analysts worldwide,ID

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