The year 2024 is set to change the global markets after the pandemic. Forrester’s Predictions 2024 say we’ll move from AI hype to practical use. Companies will start using AI more and plan their AI strategies carefully.
AI is a big deal, but so are other techs like automation and sustainability. These areas offer big chances for growth.
In 2024, companies will push forward with automation thanks to AI. SaaS sales will make up 75% of the software market. This is because of generative AI and companies merging.
For businesses to succeed in 2024, they need to focus on being empathetic, dependable, and accountable. The year will bring economic, geopolitical, and environmental challenges.
Key Takeaways
- Practical exploration of AI technology and building a strategic AI roadmap will be a top priority for leading organizations.
- Automation initiatives and AI enthusiasm will drive significant advancements in enterprise software and SaaS adoption.
- Fundamental business values, such as empathy, dependability, and accountability, will be critical for navigating economic, geopolitical, and environmental uncertainties.
- Emerging technologies, including generative AI and automation, will shape the future of work and disrupt traditional industries.
- Sustainability and climate change mitigation will become increasingly important as businesses grapple with the impacts of climate chaos.
The AI Inflection Point
The technology world is changing fast, with AI leading the way. Forrester says the AI excitement of 2023 will fade, making way for a year of real-world use. Big companies are now looking hard at how to use AI adoption and make a strong enterprise AI strategy.
Practical Exploration of Generative AI
Generative AI is making waves in both business and consumer circles. Big names like Google and Meta are putting a lot into AI, using lots of computing power and big data. Google’s AI model Gemini is a big deal, and DeepMind, part of Google, has made a model that can solve tough math problems.
AI Strategy and Implementation
Now, we’re moving past the excitement and focusing on AI implementation and making AI-powered workflows work. Forrester says by 2024, companies will start using AI on a big scale, with a focus on AI governance to make sure AI is used right and ethically.
Experts say by 2025, big companies will spend over 40% of their IT budget on AI. But, making AI work well isn’t easy. Many companies might not get the full benefit from AI and other new tech by 2026 because they don’t have enough money for training.
Despite the challenges, the AI inflection point is clear. Companies in all fields see AI’s big potential. By using a strategic, well-governed approach to AI implementation, companies can get more efficient, innovative, and ahead in the game.
Emerging Technologies Shaping the Future
The world is changing fast, bringing new technologies that will change industries and shape the future. Automation and artificial intelligence (AI) are leading this change. Companies are using these new tools to make processes better and drive digital change.
Automation Initiatives and AI Enthusiasm
Forrester predicts a big push for automation in 2024, thanks to growing AI excitement. Companies are adding AI to their work to make things more efficient and productive. This move towards AI is happening in many areas, with top companies leading the way.
Emerging technologies are already making a big impact. AI-Generated Content helps small businesses and individuals make content easily and cheaply. Quantum Computing speeds up finding new medicines by simulating molecules. 5G is making IoT, augmented reality, and self-driving cars possible, and AR in Retail boosts sales and cuts down on returns.
These examples show how new tech is changing the future. From managing cities smarter and making personalized medicine to health monitors and voice tech, the possibilities are endless. As companies adopt these new tools, the future is set for a big change.
« The future is already here – it’s just not evenly distributed. » – William Gibson
As we move forward with new technologies, companies that use them wisely will do well in the future.
Enterprise Software Disruptions
Forrester predicts big changes in the enterprise software world in 2024. Generative AI and more companies joining together will boost SaaS sales. These sales are expected to make up 75% of the market.
SaaS Sales Dominance
SaaS solutions are changing the game in enterprise software. Companies love them for being scalable, flexible, and cost-effective. Generative AI is making these solutions smarter and more tailored to users.
Vendor Consolidation and Megadeals
Forrester sees a big vendor deal happening in 2024. Companies are teaming up and buying others to stand out. This helps them grow their market share and offer more to customers.
These changes in enterprise software bring both ups and downs for businesses. It’s key for companies to keep up and be ready for new things.
« The enterprise software market is poised for significant transformation, with SaaS and vendor consolidation shaping the industry’s future. Businesses must be agile and proactive in adopting the right technologies to stay ahead of the curve. »
Focus on Fundamentals for Business Resilience
As the global market faces a tough year ahead, Forrester’s research shows focusing on core basics is key. In 2024, empathy, dependability, and accountability will be vital for companies to stay strong. These traits will help them tackle challenges and uncertainty.
Empathy will be a key skill for leaders. Showing real care for employees, customers, and the community builds trust. This trust helps companies get through hard times. Dependability is also crucial. Companies need to keep their promises and offer reliable products to keep customers happy.
Accountability is another important idea. Companies that take responsibility for their actions and decisions can make better choices. This openness and ownership help build the resilience needed to succeed in a changing market.
By focusing on these basics, businesses can set themselves up for success. In a year full of economic and political ups and downs, those that value business resilience, organizational fundamentals, empathy, dependability, and accountability will do well. They’ll be ready to face challenges and come out stronger.
Environmental Sustainability and Climate Chaos
The global climate crisis is getting worse, with 2023 being the hottest year on record. Companies must now focus on environmental sustainability and get ready for the effects of climate chaos. The Forrester Predictions 2024 highlights the challenges like wildfires, floods, and heat waves companies will face.
Business Preparedness for Climate Impacts
Forrester stresses the need for businesses to invest in sustainability and have strong climate resilience plans. In 2023, the world added 440 gigawatts of renewable capacity, with China beating the U.S. in solar power. Yet, much more is needed, as only 7% of companies with net-zero goals have solid plans to reach them.
Companies might soon spend as much on nonfinancial reports as financial ones, due to new EU and California rules. The Climate Change Performance Index (CCPI) rates and compares the climate actions of 60 countries and the EU, which together emit over 90% of global greenhouse gases. Businesses must keep an eye on these trends and adjust their operations to keep up and reduce climate risks.
« The rate of climate change is accelerating at an alarming pace, and UN scientists have reported that current global efforts are insufficient to meet the goal of limiting warming to 1.5C above pre-industrial levels. »
Companies are stepping up their climate adaptation efforts due to quicker climate impacts, with a growing need for satellite and geospatial data to understand risks. As the anti-ESG movement might lose strength, companies should keep pushing for sustainability, using partnerships and new tech to face environmental challenges.
Consumer Behavior and Social Values
The world is changing, and so are our buying habits. Forrester says by 2024, we’ll choose products based on their value, not just their social good. We want things that give us real benefits, not just a good feeling.
Economic Value over Social Values
With economic uncertainty on the rise, we’re getting smarter about how we spend. We look for products that give us a good deal, not just ones that seem right. This change is a challenge for companies, who must balance what we want with their social duties.
Acute Social Tensions and Brand Impact
Even though we’re focusing on value, social tensions will still pop up, especially during big political events. Companies need to stay in tune with what we value and what’s socially right. If they don’t, they could lose our trust and hurt their brand.
As we navigate these changes, businesses must adjust to keep up with us. By understanding what we want, they can stay ahead in a fast-changing market.
« Brands with a higher positive impact on society grow up to 4.5 times faster than those with a lower impact. »
Finding the right balance between value and responsibility will be key to a brand’s future success.
Customer Experience Trends
CX leaders are working hard to stay ahead. They must blend new AI technologies with old systems. This balance is key to a smooth customer journey.
AI is changing CX, with 78% of executives planning to use it more. But, they must be careful not to overwhelm customers with too much info. The goal is to make the customer experience better without losing their trust.
Keeping a human touch in customer service is still important. Even with AI, 8 in 10 executives believe in the value of human support. By combining AI with old systems, teams can offer a great experience to customers and help employees too.
In 2024, making customers happy will be a big focus for many companies. Those who can mix AI with old systems will lead in making big changes. They will offer experiences that keep customers coming back and growing.
Digital Commerce and Emerging Tech Adoption
Businesses are now turning to new technologies to make shopping better and grow. By 2024, more companies will use AI and AR to solve specific problems. They will pick the right tools carefully to meet customer needs and reach their goals.
AI and AR for Specific Use Cases
In the next year, AI and AR will be more focused on solving specific problems. Companies will use these technologies to make things run smoother, engage with customers better, and find new ways to make money. For example, stores might use AI and AR to let customers try on clothes virtually and get personalized advice.
Surgical Precision in Technology Decisions
Instead of just jumping into new tech, businesses will be smart about their choices. They will look closely at what they really need and invest in the most effective solutions. This way, they can use AI, AR, and other new tech to get ahead and make a real difference.
| Emerging Trends in Digital Commerce | Key Insights |
|---|---|
| Augmented Reality Shopping | Consumers can virtually try on products, enhancing the online shopping experience. |
| Blockchain for Supply Chain Transparency | Blockchain technology provides real-time visibility and traceability in the supply chain. |
| Personalized Loyalty Programs | Customized loyalty programs leverage data analytics to offer tailored rewards and benefits. |
| Eco-Friendly Practices | Consumers gravitate towards e-commerce platforms prioritizing sustainability and environmental responsibility. |
| Enhanced Security and Privacy | Strict data protection regulations drive businesses to implement robust security measures. |
| Personalized Subscription Models | Subscription-based services offer customized experiences based on individual preferences. |
To keep up with these trends, businesses need to match their tech plans with their goals and what customers want. By choosing wisely, they can make the most of AI, AR, and other new tech. This will help them grow and make shopping better for everyone.
B2B Marketing, Sales, and Product Alignment
The B2B world is changing fast, and generative AI is making a big impact on marketing, sales, and product work. Forrester says by 2024, these areas will see big changes thanks to AI tools.
GenAI Disruption and Opportunity
AI is changing how B2B companies market themselves. Gartner reports that 72% of consumers worry about AI causing misinformation, biased content, and job loss in marketing. But, generative AI also brings big chances for B2B companies.
80% of AI decision-makers plan to use generative AI soon, expecting big benefits for their businesses in the next two years. This AI will help shape 20% of new B2B products, giving valuable insights from lots of data.
To make the most of AI, B2B companies need to work better together. Buyers aged 25-44 will make up 75% of business buying teams in 2024, and two out of five Millennial buyers want early access to B2B product experts. This means they need AI-powered experiences that are personal and smooth.
| Trend | Impact | Opportunity |
|---|---|---|
| Generative AI in B2B | Potential for misinformation and job displacement | Influence on product launches and enhanced customer experiences |
| Buyer Preferences | Increased demand for personalized, AI-powered experiences | Alignment of marketing, sales, and product teams to meet buyer needs |
| B2B Marketing Strategies | Shift towards more aggressive, proactive, and AI-based tactics | Leveraging gamification, demand generation, and partner ecosystems |
By working together, B2B companies can use generative AI to offer a better customer experience in 2024 and later.
Payments Industry Transformations
The payments industry is changing fast, with new players leading the way. They know success comes from how they do things, not just what they do. Forrester’s 2024 predictions show the big changes coming to payments.
Soaring Account-to-Account Payments
Account-to-account (A2A) payments are growing fast, thanks to API technology and open banking. This will make digital payments quicker and easier for both people and businesses, changing how we handle money.
Combating Exploding Payment Fraud
As more people use digital payments, fighting payment fraud is becoming a big issue. The industry will focus on stopping Authorized Push Payment (APP) fraud. Using controls like confirmation of payee (CoP) will help fight fraud in real-time.
Reducing the Cost of Payments
Businesses want to cut down on failed payments and fraud by automating their payment processes. With high interest rates and unstable credit markets, this is crucial. The focus on efficiency will be key for the payments industry in 2024.
Corporate Demand for In-house Payment Operations
More companies are taking their payment operations in-house. This gives them better control and improves customer service. This trend will lead to more companies managing their payments on their own, seeking efficiency and flexibility in their financial services.
Banking as a Service (BaaS) Gains Momentum
Banks are looking to make more money by offering real-time payment services through APIs. This change will help them serve corporate and other customers better. This payments innovation will drive the industry’s transformations in 2024.
| Industry Trend | Projected Growth |
|---|---|
| Global Payments Industry Market Size | 6.3% annual growth, reaching $2.2 trillion by 2024 |
| Digital Payment Adoption in Emerging Markets | 23% increase by the end of 2024 |
| Mobile Payment Transactions | 17% global growth, with a total transaction value of $3.1 trillion by 2024 |
| Contactless Payments | 34% of all in-store transactions worldwide in 2024, a 12% increase |
| Peer-to-Peer Payment Services | 15% growth in user numbers, reaching 6.8 billion users by 2024 |
| Blockchain-based Payment Transactions | 42% surge in usage, with an estimated transaction value of $6.7 billion by 2024 |
The payments industry is going through big changes in 2024. It’s embracing new ideas, becoming more efficient, and fighting fraud. These changes aim to meet the needs of both businesses and consumers.
Agency Landscape and Brand Language Models
The marketing world is changing fast, and agencies are changing too. Forrester says marketing agencies will fully embrace AI in 2024. They will use this tech to make special « brand language models. » These will boost their creative and branding skills.
Brand language models will let agencies make content that’s more personal and engaging for their clients. This AI-powered branding will help agencies work better with their clients. It will lead to more effective AI-powered branding solutions.
AI Adoption and Brand Language Models
Marketing has invested a lot in AI lately, hitting $92 billion in 2022 and staying strong at $50 to $60 billion so far in 2023. This shows how big the push is for AI-powered branding. It’s all about using the latest marketing technology to innovate and work better.
Agencies using AI must make sure their brand language models match their clients’ brand values. They need to make sure these models add real value for customers.
Increased Reviews and Oversight
But, more AI in marketing means more regulatory oversight. People and groups are watching closely to make sure AI is used right. Forrester says 61% of AI decision-makers worry about privacy and data protection. And 57% are concerned about AI errors.
To keep trust, marketing agencies must be open, accountable, and use AI responsibly. They might need to add more regulatory oversight. They should also keep checking and improving their brand language models. This ensures AI is used ethically and effectively.
Media and Advertising Renaissance
Forrester’s Predictions 2024 show a big change for the media industry next year. Big media companies are getting back on track and quickly adapting to new digital changes. This change will come from using new technologies, making content better, and engaging with audiences more.
The media industry is expected to grow a lot, with a 10.6% increase in 2021. But, this growth will slow down from 2024 to 2027, reaching a steady 2.8% by 2027. People spending on media and entertainment will grow at a 2.4% rate from 2024 to 2027, reaching US$903.2 billion worldwide.
Advertising is set to become the biggest part of the entertainment and media industry by 2025. Advertising revenue will jump from US$763.7 billion to US$952.6 billion from 2022 to 2027. This shows how important good advertising is for the industry.
In Indonesia, the media and entertainment market is growing fast, ranked 15th globally. It’s expected to grow by 7.7% a year through 2027. About one in three Indonesians now use streaming services, showing a 40% increase in OTT streaming hours.
Streaming is also doing well globally, with revenue expected to hit US$139 billion by 2027. The number of streaming options in the US is set to double from four to eight by 2024.
AI is changing the media and advertising world. Already, 64% of marketers use AI in their work, and 38% plan to start in 2024. Also, 85% of marketers say AI has changed how they make content, and 60% see AI as a tool to help with their jobs.
The media and advertising industry is showing great resilience and adaptability. As it keeps changing, it will be interesting to see how companies use new technologies, improve content, and connect with audiences. This will help them grow and stay competitive.
| Metric | Value |
|---|---|
| Entertainment and media industry growth in 2021 | 10.6% |
| Projected growth rate decline from 2024 to 2027 | 2.8% by 2027 |
| Consumer spending on media and entertainment CAGR (2024-2027) | 2.4% |
| Projected advertising revenue (2022-2027) | US$763.7 billion to US$952.6 billion |
| Indonesian media and entertainment market CAGR (through 2027) | 7.7% |
| Annual growth in OTT streaming hours watched in Indonesia | 40% |
| Projected annual streaming revenue (by 2027) | US$139 billion |
| Increase in subscription video-on-demand tiers (2022-2024) | 4 to 8 |
| Marketers using AI in their marketing strategies (2024) | 64% |
| Marketers planning to start using AI in 2024 | 38% |
| Marketers who agree that generative AI has changed content creation (2024) | 85% |
| Marketers who believe AI will act as an assistant (2024) | 60% |
The media industry is experiencing a big comeback, and the advertising world is going digital. By using new technologies, making content better, and engaging with audiences, companies are ready to take advantage of new opportunities.
« The media industry’s resurgence and the advertising sector’s digital transformation are shaping a new era of growth and innovation. »
global market trends and predictions for 2024
Economic Growth and Monetary Policy
The global economy is set to recover slowly in 2024, with a growth rate of 3.2%. Advanced economies might see a bit of a boost, but emerging markets and developing economies will slow down. Central banks, like the Federal Reserve, will watch the economy closely. They might change monetary policy to fight inflationary pressures.
Consumer Spending and Labor Market Trends
Consumer spending is expected to slow down in 2024, hinting at a slower economy. The labor market might also soften, with some areas seeing more unemployment. This could affect housing and commercial real estate sectors.
Inflation Outlook and Fed Projections
Inflation worries are still there, and central banks are keeping an eye on it. The Federal Reserve plans to keep monetary policy steady to control inflation. This could affect consumer spending and economic growth.
Housing Market and Investment Trends
The housing market might face some hurdles, with changes in investment trends. Interest rates, affordability, and shifts in commercial real estate could shape the housing market.
Supply Chain Dynamics and Restructuring
The global supply chain will likely change, as companies deal with geopolitical risks and trade tensions. They might look for new suppliers and logistics solutions to stay strong.
Commercial Real Estate Sector Pressures
The commercial real estate sector is expected to see some challenges. With changes in demand and occupancy, businesses might rethink their office needs. This could change the commercial real estate market.
Geopolitical Risks and Trade Tensions
Uncertainties and trade tensions are still big worries, affecting the global economic outlook. Companies and policymakers must watch these closely and adjust their plans as needed.
« The global economy is expected to see a steady but slow recovery in 2024, with growth forecasted at 3.2%. However, the outlook differs across regions, with advanced economies expected to experience a slight acceleration, while emerging markets and developing economies face a more modest slowdown. »
Conclusion
Forrester’s Predictions 2024 give us a clear view of what’s coming in the business world next year. They cover everything from generative AI and automation to changes in consumer habits and the media industry. These insights are key for companies to stay ahead and grow, even with economic ups and downs and new tech changes.
Businesses can use these trends and predictions to shape their plans for 2024. They’ll see shifts in energy, space, and oil and gas, along with new ethical issues in AI. These insights help companies adjust and succeed in the changing market.
The Forrester Predictions 2024 act as a guide for businesses. They help companies make strong strategies and grab new chances to stay ahead in the global market.