Why data will be the foundation for AI innovation in 2024
As we enter 2024, the data landscape is witnessing a surge of transformative changes, building on the significant advancements made in 2023. We’ve seen breakthroughs in Artificial Intelligence (AI) algorithms, Large Language Models (LLMs), enhanced data analytics capabilities, and notable strides in cloud computing.
These developments have not only reshaped how organizations are using data, but also started to redefine how organizations operate and strategize. Now, as we look forward to this year, the data landscape is set to evolve further, set against the backdrop of continuous AI innovation. From the consolidation of the AI market to revolutionary changes in data management, we're entering an era where data is not just a tool or a nice-to-have, but a driving force. With another year of revolutionary change ahead of us, here are the developments that will dictate data strategy in 2024.
Consolidation of the AI market -- a historical echo
The AI market will consolidate this year, mirroring the cloud market of the past, where smaller innovators were either absorbed or outpaced by larger competitors. Well-funded early starters in AI are increasingly dominating, overshadowing new entrants. With huge investments -- like OpenAI's $13 billion backing from Microsoft – these entities can rapidly replicate the innovative ideas smaller startups have developed by simply adding new APIs. Why? Because they have larger teams, bigger budgets and high-profile backers.
In the European Union, regulators are also playing a significant role. Stricter rules on high-risk AI are shaping the market, potentially hindering the pace of innovation and limiting the development of certain AI solutions.
AI's leap from lab to production
As this consolidation influences the AI landscape, it's important to note that the way AI is being deployed will also undergo a transformation.
The shift of AI from experimental labs to production at scale is one of the few certainties of this new year. This transition will unleash new use cases across industries. In life sciences, for instance, AI is already revolutionizing research and drug discovery, effectively doubling the number of new drugs available for testing. However, this is just the beginning.
The true power of AI will be fully realized as it becomes more widely used in production across various sectors. Organizations should start preparing for this shift by asking AI systems, like GenAI, to list industry-specific use cases that can help their business, ensuring they are ready to capitalize on AI's full potential.
Data lakehouses opening their doors
However, this advancement of AI into production is not happening in isolation. It is closely tied with an evolution in how organizations will manage data.
In 2023, the concept of data lakehouses began to take shape, but their true value will be realized in the coming months. Lakehouses will enable elements of an organization's tech stack to effectively distribute data between services, which has been a challenge to this point. This evolution is critical for enabling concrete, real-world applications, such as point-in-time data snapshots for financial compliance. As organizations start to exert greater control over their data, the value of data lakehouses will become increasingly apparent. This will not only streamline data management but also enhance the efficacy of AI by providing it with more structured and accessible data.
Redefining data as a product
The advancement in data management doesn’t stop there. The way organizations view and handle data will undergo a fundamental shift in 2024.
Data is evolving from a valuable asset to being treated as a product. This change is crucial for the next stage in data maturity. We will see the emergence of new roles like 'data product owners', that emphasize this product ethos. This approach is vital to gaining a deeper understanding of data, using it to drive actionable insights and building a corpus of trusted data that is maintainable and portable. Such a strategic shift enables global collaboration between teams, bringing together disparate business functions and units. By treating data as a product, organizations can also power a new wave of trusted AI, building upon a foundation of reliable and insightful data.
Embracing the future
The evolution of AI and data management will be a key industry-wide theme for this year. For organizations, adapting to these trends is not just beneficial but essential for staying competitive. We’ll see plenty of technological advancements in 2024, as well as a paradigm shift in how data is integrated into business strategies. The future unfolding before us is one that is intricately data-driven and AI-enhanced.
Image Credit: Wayne Williams
Chris Royles is EMEA Field CTO at Cloudera.