The future of AI: what can we expect?

“Those who don’t act now will quickly lose touch.”

This statement raises an important question in the context of artificial intelligence: How relevant will AI remain in the future? What AI trends and developments await us? To understand this, we need to know the current state of AI and where we are in its development.

Artificial intelligence already serves numerous areas such as autonomous vehicles and image recognition, while at the same time enabling more efficient processes in production through data analysis and automation. Voice recognition and digital assistants are improving the user experience in smart homes and social media. Advanced AI software and algorithms strengthen AI security and ensure cyber security. In education, AI enables personalized learning approaches and sustainable technology optimizes energy consumption. Remote work benefits from AI through improved communication tools, while blockchain, the Internet of Things and 5G technology support new business models and applications such as e-commerce, augmented reality and virtual reality and drive digital transformation.

National and global classification

The third stage of AI development includes domain-specific systems such as IBM’s Watson and Google’s DeepMind AlphaGo, which are highly qualified in their specialist areas. Germany’s National AI Strategy, launched in 2018 and updated in 2020, aims to make Germany a leading center for AI. The government is promoting AI with a focus on research, application and ethical considerations, particularly in digital mobility and autonomous driving.

In 2023, 32% of large German companies will be using AI, with 44% interested in integrating it into standard business applications. Challenges exist in the lack of qualified personnel; only 29% of companies provide their employees with further training. The US, on the other hand, expects an AI adoption rate of 73% by 2024 due to significant investment and a strong technology industry.

Comparatively, the US has a higher AI adoption rate and benefits from private investment, while Germany relies on structured government initiatives and support for SMEs. Both countries struggle with skills shortages, with Germany having greater problems with training and retraining.

The future of AI: Important AI forecasts for companies

Based on the current data and the economic context, there are several important AI predictions that are particularly relevant for companies of all sizes:

Domain-specific models

According to Gartner, generative AI technologies will develop dramatically over the next few years. By 2027, over 50% of AI models in use will be industry-specific, compared to around 1% in 2023. These models are less prone to hallucinations and require less computing power. AI innovation expert Karl-Heinz Land emphasizes that early investment in specialized models gives companies significant competitive advantages. SMEs in particular benefit from tailored solutions that require specific knowledge, contextual understanding and data integrity.

Sustainability initiatives

By 2028, 30% of GenAI implementations will be optimized through sustainability initiatives . Energy and resource consumption will be minimized, with renewable energy and adapted infrastructures playing a central role. Companies that use sustainable AI implementations improve their environmental footprint and save costs in the long term. Sustainable technologies strengthen corporate image and customer loyalty. Managers must define a clear sustainability strategy that leads to improved compliance, optimized use of resources and innovative products.

Rapid market growth

The global AI market is expected to grow from USD 184 billion in 2024 to over USD 826 billion in 2030. This indicates significant opportunities and potential impact in various industries.

Widespread use

By 2024, 73% of U.S. companies are expected to have adopted AI in at least some areas of their business, underscoring the need for AI integration to remain competitive.

Effects of generative AI

More than half (54%) of the companies surveyed have already implemented generative AI in some areas of their business, which suggests significant changes in the way various functions work.

Productivity increase

64% of companies expect AI to increase their overall productivity, showing the potential to level the playing field between larger and smaller companies.

Economic contribution

AI is expected to contribute a net increase of 21% to the gross domestic product of the United States by 2030, indicating a broad economic impact. Companies are already using AI technologies for automation, data analysis and forecasting, and this trend will increase massively. AI is becoming a critical competitive factor. Companies that successfully integrate AI will work more efficiently, make better decisions and leave their competitors far behind. The advances in data processing and the development of powerful AI hardware are particularly groundbreaking. SMEs are benefiting enormously in terms of efficiency through automation and robotics in production. Big data, machine learning, deep learning and cloud computing are opening up unimagined business opportunities.

Industry-specific advantages

The manufacturing sector is expected to reap the greatest financial benefit from AI use, with a projected gain of USD 3.8 trillion, with other industries also expecting significant benefits.

Transformation of the workforce

AI will change the way almost all employees work, which implies a need for extensive retraining and adaptation of the workforce.

Autonomous systems

By 2030, one in ten cars is expected to be self-driving, which will transform specific industries and create new business models.

Challenges in data management

As AI becomes more widespread, data management remains one of the biggest challenges, underlining the need to invest in data capabilities. Find out here what you should bear in mind when setting up AI knowledge bases.

Regulatory environment

The evolving regulatory landscape will be criticalin shaping the global development of AI. Companies need to keep abreast of evolving AI legislation and adapt.

AI in the healthcare sector

AI is revolutionizing diagnostics and treatment in the healthcare sector. AI algorithms detect diseases precisely and create personalized treatment plans. AI is accelerating and improving the development of new medicines. Neural networks and deep learning are indispensable here, even if ethical issues such as data protection and responsibility in AI decisions urgently need to be clarified.

Mobility

The mobility of the future is being redefined by AI. Self-driving cars are not only a reality, but will soon be ubiquitous. AI systems enable vehicles to navigate autonomously and make decisions, which massively increases efficiency and safety in road traffic. AI is also being used in aviation and public transport to optimize traffic. Autonomous vehicles and image recognition are the key technologies here.

The seven stages of AI: an overview

The seven stages of AI provide a helpful structure to categorize the development of AI systems, even though these stages are not universally recognized and different sources may present different descriptions and numbers of stages. Currently, most AI applications fall into the first four stages, while the later stages remain theoretical or aspirational.

1. Rule-based AI systems: These systems work on the basis of predefined rules and algorithms, without the ability to learn or adapt.
2. Context-aware systems: These systems can understand and store context, which enables them to learn from previous interactions and provide personalized responses.
3. Domain-specific master systems: These AI systems are highly qualified in a specific area and can perform complex tasks in this field better than humans.
4. Thinking and reasoning systems: These systems imitate human cognitive processes, can solve complex problems and develop creative ideas.
5. Artificial General Intelligence (AGI): AGI systems are theoretical machines that can emulate all aspects of human intelligence and have self-awareness and adaptive learning.
6. Artificial superintelligence (ASI): ASI systems would far surpass human intelligence and could solve complex global problems more efficiently than humans.
7. The AI Singularity: This is a hypothetical point at which technological growth becomes uncontrollable and irreversible, which could lead to unpredictable changes in human civilization.

Conclusion

In the next five years, 30% of your most experienced employees will retire. Decades of knowledge and experience – simply gone. How much critical information, proven processes and valuable contacts will be lost with them?

Here is an overview of the ways in which you can prepare your company for the future:

Breaking down knowledge silos: With AI, you can make information accessible across departments and generations. The knowledge of experienced employees is automatically documented and made available to younger colleagues. Juniors can work more independently and managers are relieved.

Transformation of working methods: AI increases efficiency and productivity. Your employees can concentrate on value-adding activities, while routine tasks are taken over by AI.

Securing a competitive advantage: Companies that invest in AI-based knowledge management at an early stage will gain a significant advantage in the coming years – by retaining the experience of their older employees and making optimum use of this information.

Karl-Heinz Land is certain: “Companies that do not use this technology will no longer be competitive in a few years’ time. The question is not if, but when you will take the step.

Concrete approaches to action

AI as a digital shadow

Implement systems that support your experienced employees and automatically document their knowledge.

AI assistants for young employees

Equip junior staff with systems that provide them with contextualized company knowledge.

Urgent recommendations

Act now:

If you hesitate, you will lose out. Make a structured start with the various AI technologies.

Invest in AI expertise

Train your employees and create a culture of continuous learning.

Pay attention to legal aspects

Data protection and copyright are key issues. Be aware of the risks and deal with them transparently. The AI Act lays down basic provisions and regulations to minimize potential risks and strengthen consumer confidence.

Think long-term

AI-based knowledge management is the foundation of successful companies of the future.

Every day that valuable knowledge is irretrievably lost weakens your company. Take advantage of the opportunity that AI offers you. Secure the knowledge of your experts and ensure that your company’s knowledge does not retire. By following these recommendations, German SMEs can put themselves in a position to harness the potential of AI while overcoming the challenges of implementation. A proactive approach will be crucial to maintaining competitiveness in an increasingly AI-driven economy.

Were those not enough arguments for you? Then here are even more reasons why every company should consider an AI project.