The (Near) Future of AI: Key Trends Driving Business Impact
Sharon Lin is a member of Summit’s Peak Performance Group and works closely with portfolio company teams to help create and execute strategies that effectively use data and analytics to drive better decisions and build better products. In this latest installment of Summit’s Operationalizing AI series, she offers perspective on four areas where generative AI applications may offer meaningful potential for business impact.
As a data scientist, I’m fortunate to have a front-row seat to the many fascinating advancements in AI unfolding today. While we’ve all heard of AI’s transformative potential, the specifics can sometimes sound like techy buzzwords at best. In engaging with thought leaders across industries and through my work with companies across the Summit portfolio, however, I see several exciting areas in which AI is beginning to drive business impact. Here’s my take on four key areas that I believe hold some of the most exciting potential.
Agentic AI:
Autonomous, Adaptive, and Action-Oriented
Agentic AI are AI systems that make decisions and act independently, reducing the need for human oversight and enhancing efficiency. They can break requests down into a series of steps and interact with external systems to search the web, call APIs, deploy code, or perform other actions. This makes them ideal for applications in areas where timely decisions are critical, such as manufacturing, healthcare, and finance. In autonomous vehicles, for example, Agentic AI allows cars to navigate and make decisions in real-time, while in finance, it can power trading systems that act on market changes.
For businesses, the future of Agentic AI promises even more sophisticated applications, from optimizing manufacturing processes to enhancing healthcare operations. I believe the key for driving business impact with Agentic AI will be to develop frameworks that allow AI to take on complex yet well-regulated tasks. As Agentic AI evolves from its current state of partially supervised autonomy to become more independent, businesses can help reduce costs and streamline operations.
Multi-Modal AI:
Convergence of Capabilities
Multi-Modal AI brings the ability to process multiple data types simultaneously. It’s a shift from single-focused AI to a versatile model capable of integrating text, images, and videos into its learning process. Recent advancements have given rise to models like CLIP from OpenAI, which combines text and visual data, enabling AI to understand and interact with various media forms.
Development in Multi-Modal AI represents an opportunity to build more engaging, intuitive, and efficient customer interactions, such as AI-powered content generation, advanced search and recommendation systems, and sophisticated virtual assistants. Businesses can leverage Multi-Modal AI to enhance personalization, offering seamless, context-aware experiences across different channels. This ability to interpret diverse data types means more actionable insights, allowing companies to better understand their customers and refine their services.
Vertical AI:
The Power of Specialization
While general-purpose AI has its uses, Vertical AI goes a step further by focusing on industry-specific applications. These specialized models are trained on datasets unique to particular sectors, such as healthcare, finance, and retail. In healthcare, for example, Vertical AI models can assist in diagnosing diseases by analyzing medical images, while in finance, they’re capable of identifying patterns for risk assessment and fraud detection.
Vertical AI offers a tailored approach designed to align with industry regulations and requirements. By integrating Vertical AI, businesses can benefit from more precise analytics and optimized operations. It’s important to note that developing and implementing these models requires industry expertise and quality data, both of which are crucial for meaningful results. And with the ongoing development of pretrained models and AI marketplaces, businesses can access tailor-made AI solutions designed to unlock new opportunities and innovation.
Edge AI:
Real-Time Intelligence
Edge AI takes processing capabilities closer to the data source, making real-time analysis possible. It processes data directly on devices rather than relying on cloud servers, enabling faster, real-time decisions and improving privacy and security. For companies involved in retail, Edge AI can enable smart cameras that analyze customer behavior, while in manufacturing, it can drive predictive maintenance systems that catch issues before they become costly problems. The primary advantage of Edge AI is its ability to operate in low-latency environments, making it ideal for applications where immediate action is necessary.
From a business perspective, Edge AI enhances security and privacy by keeping data local, which is particularly valuable in regulated industries. It also reduces the need for extensive cloud infrastructure, which can save on operational costs. As Edge AI becomes more accessible, we expect businesses will find new ways to leverage its real-time insights for more agile, data-driven decision-making.
The AI Roadmap for Business Impact
These AI trends are not just theoretical concepts; they represent practical capabilities that can unlock operational efficiencies, improve customer experiences, and provide a competitive edge. The key challenge will be to deploy these systems strategically, ensuring that as AI capabilities grow, they bring value that aligns with business objectives and industry standards.
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The content herein reflects the views and opinions of Summit Partners and is intended for executives and operators considering partnering with Summit Partners. The information herein has not been independently verified. In recent years, technological advances have fueled the rapid growth of artificial intelligence (“AI”), and accordingly, the use of AI is becoming increasingly prevalent in a number of sectors. Due to the rate at which AI is improving and the scope of its potential application is therefore broadening as well as the ongoing and future regulation actions with respect to AI, at this time, it is unclear what impact (including, where relevant, opportunities) AI may have. Information herein is as of December 17, 2024.
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