Volume 08

April 2024: Volume 8

Forward thinking with Generation AI

AI TRENDS TO WATCH OUT FOR IN 2024

Zip code lottery How neighborhoods can impact our health

AI perspective Bringing local languages to GenAI images

Breaking through Redefining workplace success for women

Fix up move fast Creating momentum, generating results

Let’s talk data A unified strategy unlocks value

Generative AI is anticipated to be a cornerstone for creativity, innovation, productivity, and competitive advantage in the dynamic landscape of 2024. We explore the key GenAI trends for the year ahead.

IO AI TRENDS DEFINING OUR ERA

ai:sight by Fractal Volume 8

CONTENTS

06 10 GenAI trends to watch in 2024 14 Zip code lottery 16 AI perspective 20 Breaking through 24 Fix up move fast 28 Let’s talk data

EDITOR’S NOTE Forward-thinking

Defining your priorities for the year ahead As we enter 2024, thoughts naturally gravitate toward the future, with many contemplating the potential impact of generative artificial intelligence. One thing that we don’t expect is for generative AI to replace human expertise. As Fractal’s Himanshu Nautiyal puts it: “Generative AI is the magic wand, but you still need the magician to hold the wand.” So, what can we expect from AI in this year? In knowledge- intensive fields, GenAI democratizes information and gives humans more capacity. This will be transformational in areas like law and medicine, where demand for expertise exceeds supply. It will also increase the pace of business – enabling us to speed up the design of new products, for example, or achieve rapid compliance with industry legislation. Our feature article on page 07 explores this in more detail. We have gathered some of the leading thinkers in the field to provide their insights on the immediate future of AI and consider the areas in which organizations and individuals can expect to make the greatest gains this year and beyond. It’s a fascinating collection of perspectives that will help you decide what your organization’s priorities should be to maximize the benefits of AI initiatives. As GenAI sparks an industry revolution, don’t miss engaging chats with Susan MacKenty Brady and Anne Morriss. Susan shares insights on how to help women thrive at work, while encourages us to move fast and fix things. I hope you enjoy the read.

ZIP CODE LOTTERY

Susmita Roy Managing Editor

AI PERSPECTIVE

T’

Meet the team Editorial

L K

Managing Editor: Susmita Roy, Fractal Associate Editor: Hia Datta, Fractal Publication Partner: Tudor & Rose, London, UK

Web production & experience Digital Lead: Vinay Nair, Fractal Digital Manager: Archee Gaur, Fractal Design Visual concept by: Prasidh Dalvi and Craig Fernandes, Fractal Designed by: The 10 Group, London, UK

Volume 8 ai:sight by Fractal

ai:sight by Fractal Volume 8

FEATURE

01 10 AI TRENDS TO WATCH OUT FOR IN 2024 GENERA TION AI

Generative AI (GenAI) burst onto the global stage last year and quickly became the star of the show. This young technology holds endless potential, and we’ve only just begun to see what it can do. So, what does 2024 have in store? Fractal and its customers have identified some key trends for this year.

Meanwhile, foundation models that can work across various tasks and problems will continue to challenge domain-specific ones – although Velamakanni foresees that hybrid approaches will remain valuable. “THIS TECHNOLOGY SHOWS NO SIGN OF SLOWING DOWN.”

“We’re right at the start of development for GenAI and it’s already clear that it’s a powerful tool for enhancing productivity,” comments Charles Allen, senior advisor, digital operations at asset management firm TPG Global. “Other technologies, such as blockchain and quantum computing, are attracting interest among governments and financial institutions, but these will take a few years to establish. GenAI is moving faster. In the next 12 months, we’ll see all kinds of use cases related to its reading, writing, research, and language processing capabilities.”

A YEAR OF ACCELERATION Those new to GenAI had better get up to speed because this technology shows no sign of slowing down. “This year, the GenAI foundation models race will heat up with the launch of Gemini before February and GPT-5 surpassing it by March,” says Srikanth Velamakanni, co- founder, group chief executive, and vice chairman of Fractal. “We’ll also see substantial improvements to open-source offerings and their AI models, which will come close to GPT-4’s capabilities. 2024 will also bring the rise of customizable AI agents that simplify task automation, decision-making, and information retrieval for everyday users.”

Srikanth Velamakanni Co-Founder, Group Chief Executive, and Vice Chairman, Fractal

“GENAI MARKS A TRANSFORMATIVE LEAP IN PRODUCTIVITY.”

Charles Allen Senior Advisor, Digital Operations at Asset Management Firm, TPG Global

Volume 8 ai:sight by Fractal

ai:sight by Fractal Volume 8

FEATURE

AS CONFIDENCE GROWS ADOPTION WILL FLOW Three key areas will drive the adoption of GenAI this year, states Allen at TPG Global. “First, existing providers, particularly software providers, will enhance their products with GenAI capabilities,” Allen explains. “As well as making it easier for companies to purchase it, that will also give people confidence that the technology has been well vetted.” “In addition, companies in all industries will experiment to find how they can use GenAI to boost productivity, whether in contact centers, engineering development teams, research, or marketing functions. For instance, if GenAI can digest vast amounts of internal and external data, it could allow analysts to spend more time reviewing research insights instead of processing the raw information.”

85% EXPERTISE 100% PRODUCTIVITY GenAI’s productivity-boosting abilities are already big news. That journey will continue, making huge impacts in areas where the pool of human expertise struggles to meet demand. “GenAI will help to democratize information in a wide array of regulated, licensed, and knowledge- intensive fields,” remarks Himanshu Nautiyal, chief product officer at Fractal. “That could be a doctor using Qure.ai to read medical scans so they can treat more patients and start them on their treatment paths sooner. A procurement specialist might use GenAI to negotiate and amend vendor contracts, reducing onboarding time from weeks to days.

Or it could be an insurer who uses the technology to dramatically cut the time it takes to adjust product details and documentation in line with regulations.” “Wherever 85% of the specialist’s expertise is enough, GenAI can increase the speed and efficiency of human experts so they can handle much more volume, more effectively.” Economic factors will drive this trend as organizations focus on maximizing the value of their investments.

A NEW AGE OF CREATIVITY

“Finally, we’re clearly in a very innovative phase with GenAI technology. Just like the early days of the web, we’ll see the emergence of new players, business models, and solutions that take advantage of GenAI capabilities and result in whole new areas of value creation.” “ WE’RE CLEARLY IN A VERY INNOVATIVE PHASE WITH GENAI TECHNOLOGY.” Gupta predicts a shift in the focus of GenAI projects as data modernization efforts help organizations to enable the technology. “Enterprises will pivot from numerous pilots to a few successful production- level GenAI applications to unlock greater return from their investments,” he comments. They will also focus more on upgrading their traditional data stacks to support GenAI use cases, with data quality, reliability and security being the prime focus.” “ COMPANIES IN ALL INDUSTRIES WILL EXPERIMENT TO FIND HOW THEY CAN USE GENAI TO BOOST PRODUCTIVITY”

Terri Bresenham Co-Founder, Forte Health Advisors

“AI EMERGES AS A NEW BRUSHSTROKE, TRANSFORMING OUR FUTURE’S CANVAS.” limitless and, at times, unnerving.” Results are already being seen in areas like IT operations, as organizations use GenAI to build on the past decade’s IT investments. Product developers will see a new age of creativity dawn. As GenAI-powered productivity gains compress the development cycle, designers will be free to iterate more, test user feedback, and discover the products that make a difference for their customers. “In the grand tapestry of our collective destiny, AI emerges as a new brushstroke, transforming our future’s canvas,” comments Terri Bresenham, co-founder of Forte Health Advisors. “Our ability to blend humanity with artificial minds will create a new precedent for what we understand and how we innovate. It will feel nearly “Current projects already cite improvements of up to 40% in software development tasks,” says Sharyn Leaver, chief research officer at Forrester. “Visionary tech executives will seize this as an opportunity to strategically realign IT resources to unlock the immense creative potential within their teams – not just among developers but across all IT roles.”

“UNLEASHING CREATIVE POTENTIAL ACROSS ALL ROLES.” unprecedented business value. Businesses will benefit as their tech teams provide products and services that deliver better, more innovative customer experiences. Behold the age of creativity!” They will leverage this AI moment to create an environment that promotes innovation, interdisciplinary teamwork, continuous learning, and alignment with the broader business strategy. “This shift in focus will free up to 50% more time for employees to engage in creative problem- solving, driving customer-centric innovation and creating “THIS SHIFT IN FOCUS WILL FREE UP TO 50% MORE TIME FOR EMPLOYEES TO ENGAGE IN CREATIVE PROBLEM-SOLVING.”

“IN 2024, ‘DO MORE WITH LESS’ WILL BE THE DRIVING FORCE OF ENTERPRISES.”

“GENAI CAN INCREASE THE SPEED AND EFFICIENCY OF HUMAN EXPERTS.”

Vishal Gupta Vice President, Everest Group

“In 2024, ‘do more with less’ will be the driving force for enterprises,” says Vishal Gupta, vice president of research firm Everest Group. “Amidst the uncertain global macroeconomic situation, enterprises will prioritize prudent technology investments ‘ – data, AI and cloud will be key for unlocking greater value.”

Charles Allen Senior Advisor, Digital Operations at Asset Management Firm, TPG Global

Himanshu Nautiyal Chief Product Officer, Fractal

Sharyn Leaver Chief Research Officer, Forrester

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ai:sight by Fractal Volume 8

FEATURE

Groundbreaking approaches to challenges like security, data privacy, and transparency are likely this year.

soon. Yet a vast majority – 60% – of these skeptics will use (and love!) GenAI during 2024, whether they know it or not. Tech companies are embedding GenAI capabilities in their platforms and tools and in the apps and products people use daily, so GenAI will seep into peoples’ lives seamlessly and invisibly.” “60% OF SKEPTICS WILL USE GENAI DURING 2024, WHETHER THEY KNOW IT OR NOT.”

GEN AI WILL TOUCH EVERYONE

ENTERPRISES SET THE TREND

“WE CAN EXPECT TO SEE AT LEAST ONE AI-GENERATED IDEA, SCREENPLAY, AND, EVENTUALLY, A MOVIE.” reminiscent of the Google Play or Apple App Store, encouraging the use of foundation models by content creators and app developers.” become mainstream, revolutionizing training videos and content creation. In addition, we can expect to see at least one AI-generated idea, screenplay, and, eventually, a movie. A new ecosystem will also emerge, While some consumers are skeptical about GenAI’s impact, that doesn’t mean they won’t be using the technology. For example, avoiding it across media and entertainment formats will be difficult. “Anticipating the 2024 US elections, major social media and news platforms will introduce advanced AI-generated/fake content detection tools,” Velamakanni says. “Text- to-video, image upscaling, and image-to-video technologies will As a result, even GenAI skeptics will likely enjoy some interaction with it this year. “Consumers worry about GenAI’s ethics and human impact,” observes Leaver at Forrester. “For instance, 50% of US and 43% of French online adults who have heard of AI say that GenAI poses a threat to society, and that number won’t decrease anytime

“One result will be a ‘cybersecurity meets blockchain’ approach. Speedy progress on GenAI agents will likely increase potential cyber risks at the enterprise level. Expect to see decentralized security solutions gaining traction, offering businesses and individuals greater control over their data.”

To see GenAI’s direction of travel, look at the world’s biggest enterprises. As adoption grows among these leading firms, it will also shape how others apply the technology. “Over 80% of Fortune 100 companies will implement GenAI-infused use cases, as risks related to privacy and compliance get mitigated,” Velamakanni predicts. “Powered by GenAI, enterprise search, and website search experience will improve substantially. Business intelligence and knowledge management will offer insights, predictions, and recommendations. The near- universal adoption of these tools will boost productivity by approximately 30% in coding tasks, and AI automation will eclipse traditional robotic process automation platforms.”

Raj Aradhyula Chief Design Officer, Fractal

A RESPONSIBLE AI REVOLUTION As a young technology, the ethics surrounding GenAI will be a central focus throughout 2024. “Ethical considerations play a pivotal role in shaping technology’s impact on society, and in the era of GenAI, consumers, and enterprises will demand that they are an integral part of system design,” comments Raj Aradhyula, chief design officer at Fractal. “Designers will focus on transparency, fairness, and responsible use of AI to address concerns like algorithmic bias and user privacy. Prioritizing explainability ensures users can comprehend how AI systems make decisions. As GenAI progresses, it’s vital to establish and adhere to ethical guidelines that prioritize user well-being, uphold privacy standards, and mitigate unintended consequences. Doing so fosters trust in the relationship between users and intelligent systems.”

“PRIORITIZING EXPLAINABILITY ENSURES USERS CAN COMPREHEND HOW AI SYSTEMS MAKE DECISIONS.” of ‘explainable AI’ that ensures transparency in decision-making as well as responsible consumption,” predicts Sankar Narayanan, chief practice officer of technology, media, entertainment, and insurance at Fractal. “I expect increased scrutiny of algorithms for bias and discrimination, and rapid progress

Sankar Narayanan Chief Practise Officer of Technology, Media, Entertainment and Insurance, Fractal

Sharyn Leaver Chief Research Officer, Forrester

Meanwhile, GenAI fans will find ever more engaging experiences. “We are progressing towards a fundamental phygital world,” Narayanan comments. “Forget metaverse hype, Gen Z craves ‘in-real-life’ experiences enhanced by tech. As a tech-savvy consumer, I expect to see augmented reality shopping sprees and AI-powered escape rooms. “WE ARE PROGRESSING TOWARDS A FUNDAMENTAL PHYGITAL WORLD.”

“EXPECT TO SEE DECENTRALIZED SECURITY SOLUTIONS GAINING TRACTION.” These efforts will play alongside the regulatory spotlight that is shining on AI. “In 2024 regulators will place greater emphasis on bringing AI’s development and implementation under a regulatory umbrella,” notes Gupta. “This will drive enterprises to infuse legal expertise within AI teams.”

“OVER 80% OF FORTUNE 100 COMPANIES WILL IMPLEMENT GENAI-INFUSED USE CASES.”

Srikanth Velamakanni Co-Founder, Group Chief Executive, and Vice Chairman, Fractal

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ai:sight by Fractal Volume 8

FEATURE

AN APEX OF HUMAN-AI COLLABORATION Collaboration between people and AI will reach new levels thanks to behavioral science-led design. “By combining insights from behavioral science with the principles of design, organizations will be able to create GenAI solutions that respect human cognitive limitations and biases,” Aradhyula explains.

ADAPTABLE ORGANISATIONS WILL OPTIMIZE VALUE Rasesh Shah, chief practice officer at Fractal, sums up GenAI’s potential for enterprises of all kinds. “GenAI is a critical necessity, propelling innovation and reshaping industries,” Shah comments, “It’s a transformative force across sectors. Early adopters wield a competitive edge, securing relevance in a cutthroat market.” “GENAI IS A CRITICAL NECESSITY, PROPELLING INNOVATION AND RESHAPING INDUSTRIES,” For those lagging, it’s time to get ready to take advantage. “Adaptability is vital,” Shah counsels. “Executives must invest in continual learning to effectively harness this

GenAI’s ubiquity will bring big developments.

technology. As GenAI advances, so does its potential, promising an era ripe with unprecedented opportunities. The significance extends beyond industries. EdTech, powered by AI, transforms learning landscapes. For corporates, investing in EdTech isn’t just about upskilling; it’s about future-proofing. It ensures a workforce adept at navigating the evolving tech terrain, fostering innovation within the organization.” “GenAI is the guiding light steering businesses towards a future where creativity, efficiency and education converge for boundless possibilities.”

AN AI-FUELED TALENT RUSH

“GENAI IS THE MAGIC WAND, BUT YOU STILL NEED THE MAGICIAN TO HOLD IT.” “That’s because much of the data involved in a person’s job is specific to the situation. That data is not present in the training set of GenAI elements. It resides with the human, and it changes constantly.” This means we can forget about robots replacing workers, says Narayanan. The reality will be far more enriching.

“Human-AI collaboration will be at its peak,” Aradhyula predicts. “Engineers and designers will come together more intentionally to envision and create interfaces that facilitate effective collaboration between humans and AI systems. This involves understanding the strengths and limitations of both humans and AI and designing workflows that leverage the complementary capabilities of each.” “We’ll also see more inclusive systems that prioritize accessibility. By leveraging behavioral science insights, designers will ensure that interfaces align with diverse user behaviors and preferences. GenAI’s personalization capabilities further enhance accessibility by adapting interfaces to individual needs. This integrated approach advances technological sophistication and fosters a more user-centric, accessible, and inclusive digital environment.” “HUMAN-AI COLLABORATION WILL BE AT ITS PEAK.” “WE’LL ALSO SEE MORE INCLUSIVE SYSTEMS THAT PRIORITIZE ACCESSIBILITY.”

GenAI’s power to boost productivity, especially in sectors that rely on repetitive cognitive and creative skills, will enable business growth without corresponding job creation. But that doesn’t mean humans will be automated out of work. This technology is designed to enhance human expertise, and its value will be greatest wherever humans collaborate. Nautiyal comments, “GenAI is the magic wand, but you still need the magician to hold it. No single job, whether a teacher, doctor, lawyer, procurement specialist, banker, customer service, or support personnel, can be done completely by GenAI today or in the future with our current approaches.”

“This will enhance the quality of decisions and the overall decision-making experience.”

“ORGANIZATIONS WILL BE ABLE TO CREATE GENAI SOLUTIONS

THAT RESPECT HUMAN COGNITIVE LIMITATIONS AND BIASES.”

Sankar Narayanan Chief Practise Officer of Technology, Media, Entertainment and Insurance, Fractal

Rasesh Shah Chief Practice Officer, Fractal

Raj Aradhyula Chief Design Officer, Fractal

“GenAI agents will likely become a strong substitute for manual subprocesses in areas ranging from supply chains to customer service,” he predicts. “This will force businesses to redefine talent needs and embrace continuous reskilling.”

Himanshu Nautiyal Chief Product Officer, Fractal

Volume 8 ai:sight by Fractal

ai:sight by Fractal Volume 8

BYL INE

ZIP CODE LOTTERY

are difficult to integrate. Moreover, there is no standard methodology to identify high-risk members and geographical hotspots, making it difficult for healthcare companies to intervene and help members. Recognizing this, Fractal has developed an integrated population health management suite leveraging data, AI, and human-centered design. It combines data from over 100 different sources, including the organization’s internal and public data sets, and helps healthcare organizations identify high-risk members and high-risk geographies through an interactive map. For example, a user looking at the incidence of diabetes and food insecurity in a region can identify the zip codes with a high disease prevalence and particular social needs and even filter down to those incidences requiring ER visits. Users can then get a list of members who live in these zip codes, connect with them, and perhaps enroll them in a food insecurity initiative or a diabetes management program. The benefits have been significant. One large US healthcare organization has more than 250 teams using the solution, and by closing SDoH gaps, the organization has impacted more than one million members. The solution was a key differentiator for the organization to win new government contracts and expand its business in new states. In months and years to come, Fractal expects to onboard more healthcare organizations and, as a result, impact many more lives worldwide. Understanding this information can be vital for US healthcare payors and providers to improve the health outcomes of their members and reduce healthcare costs.

How your neighborhood can determine your health outcomes

he US spends more money on healthcare – ~20% of its GDP ($4.5T) annually, according to The Commonwealth Fund – than any other high-income

SDoH has tremendous impacts on the health of people and on the healthcare system as a whole. People with food insecurity have a 50% chance of diabetes. Those suffering from loneliness are 64% more likely to suffer from clinical dementia. Those who miss appointments due to transportation issues cost the healthcare industry US$150 billion annually. People with the most social needs tend to live in poorer neighborhoods and tend to be from marginalized and vulnerable sections of the population. For example, Roxbury, Massachusetts – a poor neighborhood with high levels of unemployment, food insecurity, and crime has a life expectancy of just 59 years, while Back Bay – a wealthy neighborhood just five miles from Roxbury with no food insecurity, low unemployment rate, and low crime rate has a life expectancy of 91 years. Understanding this information can be vital for US healthcare payors and providers to improve the health outcomes of their members and reduce healthcare costs. However, most healthcare companies do not have a holistic view of their members. Data is stored in siloed systems that

country. The next highest, Germany, spends 12.8% of GDP. Despite this, adults in the US are most likely to suffer from multiple chronic conditions. And the US has the lowest life expectancy of any OECD member country at birth. Clinical care is, however, estimated to impact only 10-20% of our health outcomes. Socioeconomic factors, physical environment, and lifestyle behaviors – called ‘Social Determinants of Health (SDoH)/Social needs’ determine the remaining 80- 90% of health outcomes. Here is SDoH prevalence across the US:

10% 20% 40%

of Americans are food insecure – they don’t know where their next meal will come from. of Americans are lonely, which rises to five in ten for those over 65. of Americans have transportation issues.

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A wider GenAI world India provided a logical starting point for broadening the technology’s linguistic and contextual range. As well as being home to Fractal and many of its employees, this vast country has 22 official languages and several different writing systems. If Kalaido can generate high-quality images from these inputs, it will be able to do the same for other regions that are not English-first. Right now, Kalaido can generate images with Indian context, from text prompts in 17 Indian languages as well as English. This capability is a huge hit with users of all ages. However, it is just the first step in a longer journey. Currently, the platform’s results show more familiarity with tourist spots than with lesser-known streets and locations. We have achieved our goal of making the technology more accessible to Indian users. Now we must continue our work to make sure the platform understands Indian languages and contexts as well as possible. Kick-starting the creative conversation Another key goal was to make sure Kalaido was accessible for anyone to use. One way to do that was to make sure the platform is simple and comfortable to use on a mobile phone. This has attracted people from all age groups to engage with the platform. An email address is all that is needed to log onto the

platform. It is also the only piece of data we collect, so there are no worries about data security. Next, we want to help users to blast through any creative blocks. Behavioral science tells us that finding a place to start the creative process is often the hardest part. We developed Kalaido’s ‘Enhance your prompt’ feature to provide that jumping-off point. Say, for example, you want to create an image to promote a vintage clothing sale in aid of a local charity. You tell Kalaido to create an image of a cat in a hat. The results lack a certain something, but you can’t think what it is. No problem – simply click the option to enhance your prompt and Kalaido will generate details such as the setting, weather conditions, the cat’s mood and appearance, and the type of hat it is wearing. By refining those details – adding some jewelry, perhaps, or changing the suggested background from a green field to a local landmark – you can create an image that perfectly suits your purpose. Kalaido has helped to kick-start the creative conversation so you can continue it. An ongoing journey Ultimately, we are developing Kalaido with users, for users – and so far, their response has been overwhelmingly positive. Many are comparing this beta-stage release with other high-profile text-to-image generation tools and finding it just as good, in some cases better.

Users are also helping us to refine the platform. This doesn’t just come from the feedback they provide on what works well and what can be improved. We’re seeing interesting trends in the way they use Kalaido and the concepts they are fusing together in their images. Those trends suggest exciting possibilities for future use cases. As Kalaido’s journey continues, our immediate focus is on perfecting the platform’s Indianization, as well as tackling issues common across GenAI industry. One ongoing challenge is ensuring that the images can’t be used in inappropriate ways. Kalaido has guardrails to protect against violent or explicit material in pictures and prompts, for example, and it watermarks images of well-known people to identify them as AI- generated. As GenAI develops, so do the potential issues, so we’ll continue to refine these measures and introduce new ones as necessary. We are also exploring ways to improve the platform’s handling of very complex prompts. Looking further ahead, capabilities like video generation could also be a possibility. By perfecting the model we have and growing it organically with our users, we are building a foundation for greater creativity in the future. Start creating with Kalaido today.

AI PERSPECTIVE Bringing local languages and contexts into GenAI images.

picture really can speak a thousand words. That’s the secret of a real masterpiece, whether its purpose is art or advertising. By layering

Recently, generative AI (GenAI) has provided various tools that can generate images based on a few descriptive words. It provides a paintbrush for unbounded creativity – as long as you know how to make the right brushstrokes. That can be harder than it seems. Many people find it difficult to come up with the right idea for their image. Even when they do, they may not know how to provide the most effective text prompt for the GenAI.

On top of that, the quality of the images can depend on where in the world you are. This is because much of the internet has developed in Western, English-speaking regions. Text-to-image GenAI uses internet datasets, so the results often lean towards those Western contexts. For users in other regions, using a different language or trying to inject some local color often yields poorer pictures. These are the challenges we set out to address with Kalaido, Fractal’s own text-to-image platform, which is available in beta for anyone to use, free of charge.

elements like subject, background, actions and expressions, the artist creates something that stimulates the senses, emotions and intellect.

Ritesh Thakur Principal Research

Suraj Amonkar Chief AI Research & Platforms Officer, Fractal Suraj has extensive experience in AI and

Architect AI Research & Platform, Kalaido, Fractal Ritesh has a strong skill set in multi-domain analytics, data visualization, business intelligence tools, big data technologies, and end-to- end solution automation.

engineering, and a keen interest in building next- generation systems that scale for real-world impact.

Volume 8 ai:sight by Fractal

ai:sight by Fractal Volume 8

2024 AI PREDICTIONS

PREDICTIONS 2024 AI

ENTERPRISE AI 11. ENTERPRISE ADOPTION OF GENAI Over 80% of Fortune 100 companies will implement GenAI infused use cases, as risks related to privacy and compliance get mitigated. 12. E NHANCED ENTERPRISE AND WEBSITE SEARCH

APPLICATION AREAS

16. MISINFORMATION AND FAKE DETECTOR TOOLS

Anticipating the 2024 elections, major social media platform will introduce advanced AI generated/fake content detection tools . 17. AI MEDIA CREATION Text-to-video, image upscaling and image-to- video technologies will become mainstream, revolutionizing content creation. 18. AI IN ENTERTAINMENT Expect at least one AI-generated idea of screenplay and movie this year. 19. AI IN CYBERSECURITY Both offensive and defensive cybersecurity strategies will increasingly rely on advanced AI, with nation-states actively participating. 20. AI APP STORE BUSINESS MODEL A new ecostystem will emerge, reminiscent of Google Play or Apple Store, encouraging use of foundation models by content creators and app developers.

BY SRIKANTH VELAMAKANNI

13. E NTERPRISE BI + AI

Business intelligence and knowledge management will come together to offer insights, predictions and recommendations. 14. A I ASSISTANTS IN CODING Near-universal adoption of these tools will boost productivity by approximately 30% in coding tasks. 15. A I AUTOMATION VS. RPA Al automation will eclipse traditional RPA platforms.

MACRO-ECONOMICS AND STARTUPS 6. PRODUCTIVITY BOOST ACROSS SECTORS AI assistants, apps and agents will enhance productivity in repretitive cognitive and creative tasks. 7. J OBLESS GROWTH IN KEY SECTORS Due to the above, we will witness growth without corresponding job creation in sectors reliant on repetitive cognitive and creative skills. 8. R EDUCED FUNDING SIZES IN EARLY STAGES AI leverage will lower the costs of building and launching products, affecting early-stage funding requirements. 9. COSTLIER HORIZONTAL AI COMPANIES Establishing broad-scope AI companies like DeepMind or OpenAi will become more expensive due to higher talent and training costs. 10. A I AGENTS GONE ROGUE Expect more news of AI mishaps, ranging from comical to serious.

LLMS AND FOUNDATION MODELS 1. FOUNDATION MODELS RACE WILL HEAT UP Gemini will launch before February, and GPT-5 will surpass it by March. 2. OPEN-SOURCE & THEIR AI MODELS These will substantially improve, nearing GPT-4’s capabilities. 3. REDUCED TOKEN COSTS A dramatic drop of over 75% in the cost of Al tokens compared to 2023. 4. F OUNDATION MODELS VS DOMAIN SPECIFIC MODELS Foundation models will continue to challenge domain-specific ones, yet hybrid approaches will remain valuable. 5. RISE OF AI AGENTS Customizable Al agents will simplify task automation, decision-making, and information retrieval for everyday users.

Srikanth Velamakanni Co-Founder, Group Chief Executive, and Vice Chairman, Fractal

Volume 8 ai:sight by Fractal

ai:sight by Fractal Volume 8

AUTHOR SPEAK: SUSAN MACKENTY BRADY

Recent research from The Simmons University Institute for Inclusive Leadership shows that, when they are thriving, women employees are more productive and more likely to go above and beyond. So, how can we create a workplace in which women can thrive? Susan MacKenty Brady shares a few key actions that can have a big impact.

hriving at work is the antidote to many of the challenges women face that have led to

their jobs during that time. What’s more, it’s still the case that women must work harder to get the same attention, promotion accolades, and the same level of sponsorship as men. As a result, too many women are exhausted and burnt out. It’s time for change. What our research has uncovered is that women thrive when they have more flexibility at work. That doesn’t mean going part-time – it means creating a professional life that works for them. Women likely have more opportunity to negotiate working terms that work for them. Often, women will make assumptions about what is possible without asking their employer. In a world where many organizations are working hard to retain top talent – especially women – there may be more flexibility than meets the eye. It’s time to put the locus of control in the palm of women’s hands and help them execute life the way it works for them.

burnout. That’s the opinion of Susan MacKenty Brady, the founding CEO of The Simmons University Institute for Inclusive Leadership, where she holds the Deloitte Ellen Gabriel Chair for Women and Leadership. Here, she tells us about the important steps that businesses can take to foster an environment in which every woman can thrive. Can you explain the evolution of workplace culture that has led to the rise in instances of the ‘great breakup’, ‘quiet quitting’, and burnout in general? And precisely the impact on women? The pandemic has created some deep challenges for women, particularly those who have a second job or who do the lion’s share of the childcare and household chores. In fact, many women had to leave

Redefining workplace success for women.

Volume 8 ai:sight by Fractal

ai:sight by Fractal Volume 8

AUTHOR SPEAK: SUSAN MACKENTY BRADY

What we have found is that best-in-class companies hold people accountable for how they interact with one another.

Susan’s latest book Arrive and Thrive on the seven impactful practices for women navigating leadership

Return to your best self – where your strengths, value, joy, and vitality meet.

is now available in all leading bookstores. Grab a copy now.

Are there certain principles you would advocate for women to help them thrive in today’s workplace? In my book Arrive and Thrive, my co- authors and I outline seven impactful practices for women navigating leadership. Let me give you a brief overview of three of them. The first is investing in and returning to your best self. What does that mean? Well, it’s where your strengths and talents come together with where you can add value, and where you feel joy and vitality. Leading from your best self means you stand in respect of your own value and the value others bring too; no better than others, but you’re no less than others, either. Another practice is embracing your authenticity. We mature and change over the course of our lifetime, which means that the way we honor ourselves changes. It’s important, then, to regularly check in with your values to make sure your work aligns with what you want and need at your current life stage. Then there’s cultivating courage. Courage is not the absence of fear, it’s the presence of vulnerability. It’s what we do to flex our muscles during a moment that feels risky or scary to return to our best selves. It’s calling on the narrator in your mind to tell you

that you are not just good enough; you’re fantastic. What are the most important steps that organizations can take to foster an environment in which women can thrive and where there is a focus on inclusivity? Supporting women to thrive takes resources and tools, but – most importantly – it’s about checking in with the women you’re currently employing. Do they feel they’re making a meaningful contribution? Do they feel valued? Are you helping them learn and grow? Are you giving feedback in a positive, constructive way? These are some basic management tenants and often, they are missed. We’re solving the big global problem of advancing more women into leadership, when in fact, some of the work organizations can do is double down on their management leadership capabilities to ensure the women who are already employed remain in the organization. What are the primary motivations for this – what do organizations gain? There’s a lot of data that shows that advancing women’s equality can add to global GDP. A McKinsey report, for example, found that we could witness a US $12 trillion growth globally if

women were participating in the workforce at the same rate as men. Other research has found that gender-diverse companies are 25% more likely to earn more than their competitors. In the US alone, if we hired and promoted women at the same rate as men or the same rate as countries like Norway, the economy could grow by 8%. Can you share some specific examples of how organizations have built an environment that allows all employees to thrive? There is great progress being made among organizations that are seriously working on developing the mindsets of leaders to make workplaces work for everyone. Some recent research found that one of the top challenges for women is microaggressions – for example, talking over someone, taking credit for their idea, or not asking for their opinion in the first place. These are very fixable moment-to-moment behaviors. What we have found is that best- in-class companies hold people accountable for how they interact with one another. We can’t have belonging or inclusion when human beings are not respectful and thoughtful in their behavior toward

others. Best-in-class organizations are investing in human-centric leadership practices. What can organizations do to maintain positive momentum around inclusivity? The new frontier of leader readiness is helping all leaders understand how their mindset needs to shift very specifically to realize the value of the unique contributions that all of us bring to the organization. Every situation is more complicated than any one person can see. We need to remain curious for longer than is comfortable. Intellectual humility and knowing how to return to our best

selves before we react might be the two skills that are most important in the future. I’m very proud of the body of work coming from The Simmons University Institute for Inclusive Leadership. Many organizations today are equipping their leaders and their employees to understand bias and to realize that their environment might not be equitable for all. We’re asking the same leaders to be champions for change and ultimately, sponsor underrepresented populations so that they not only advance and stay in their place of work but truly thrive.

About the Author: Susan MacKenty Brady is the Deloitte Ellen Gabriel Chair for Women and Leadership at Simmons University and the Chief Executive Officer of The Simmons University Institute leadership well-being coach, author and speaker, Susan educates leaders and executives globally on fostering self-awareness for optimal leadership. Susan advises executive teams on how to work together effectively and create inclusion and gender parity in organizations. A highly sought authority on emotionally intelligent leadership, Susan has been featured on ABC’s Good Morning America and has keynoted or consulted at over 500 organizations worldwide. for Inclusive Leadership. As a relationship expert,

Gender-diverse companies have a 25% higher chance of out earning competitors.

Volume 8 ai:sight by Fractal

ai:sight by Fractal Volume 8

AUTHOR SPEAK: ANNE MORRISS

You say that, far too often, companies don’t tackle the root issues but instead focus on surface problems that mask what’s going on. How can companies identify the real problems holding them back? How will this benefit their company? In the book, we organize steps by day of the week and use Monday to signify the first step: identify your real problem. We invite you to pause and focus on this as it’s very tempting to solve the symptom of a problem and not tunnel down to its root cause. The thing that will help you the most is your curiosity, and that is the abundant and renewable resource we really want you to tap into. It’s not as easy as it sounds to do that because most of us, particularly as we rise in the hierarchy, become convinced that we are paid for our judgment. And judgment and curiosity don’t play well together. The research shows that they can’t co-exist, so often, we must be quite deliberate at leaving judgment out of the room as we figure out the real problem and invite curiosity to take the wheel. Your job on Monday, and when you’re trying to figure out the real cause of problems, is to ask the right questions and not to have the right answers. That’s a real mindset shift for many people in leadership. You argue that creating the conditions for everyone to thrive is the ultimate investment a company can make. Let’s say we’re convinced – where do we start on this ambitious goal?

Leadership is about creating the conditions for others to thrive, both in your presence and your absence. The tools to achieve this differ depending on who you’re trying to influence. For the people in front of you, it’s about setting high standards, being clear about expectations, but also simultaneously revealing your deep devotion to their success. Doing these things at the same time is often counterintuitive. Not everybody is the same, and it’s a huge advantage to create an environment where people can bring their differences into the workplace and contribute to that difference. The simplest way to do this is to practice the platinum rule. The golden rule is to treat other people the way you would want to be treated. But if those people are different from you, that won’t work. We want you to upgrade to the platinum rule, which is to treat other people how they would like to be treated. The beautiful thing about the platinum rule is you don’t know the answer to that question until you go and find out. And so, inquiry can be a powerful, enlightening, trust-building moment. So, go and find out what it will take for someone else to thrive, and then execute that with a sense of urgency. You emphasize the importance of trust and discuss its three essential drivers: authenticity, empathy, and logic. Can you share how you can use these to identify where a company might be losing trust? I am more likely to trust you as a leader if I am convinced of your logic, authenticity, and empathy. Logic means I’m convinced that you can do the job, I trust you at the wheel, and I think you’ll make good decisions. Empathy is where I believe that you care about me and my success. The authenticity part is when I believe that what you think, say, and do are aligned.

Speed has gotten a bad name in business, much of it deserved. Why did you set out to rehabilitate its reputation? Isn’t speed the problem in many companies? What we have found in working with organizations is that there is a huge opportunity to make a difference to those leaders, teams, and businesses that are moving too slowly. If we can help increase the metabolism of organizations by giving people a way to respond with urgency to their most important problems, then that is the path organizations that are taking big swings and/or responding to big shocks. No one has ever told us, “I wish I had taken longer and done less.” So, that’s the jumping-off point for the book. Can we look at the pattern of those who have been particularly effective at leading big, meaningful change and not only learn from the pattern but also codify it in a way that would be accessible to others? to an even bigger impact. We have worked with many

Over the last ten years, Anne Morriss has helped countless companies create the speed and trust necessary to generate momentum and results. Here she tells ai:sight about her latest book Move Fast and Fix Things, where she shares the success she has helped achieve at fast-moving companies, including Uber, Riot Games, and ServiceNow.

ver a decade ago, Mark Zuckerberg declared that Facebook would “move fast and break things”. The phrase

quickly became an informal motto for the tech giant and thousands of businesses aspiring to be like it. However, leadership expert Anne Morriss, founder of the Leadership Consortium and co-host of the TED podcast Fixable, believes a new mandate is more appropriate for businesses: move fast and fix things. Here, she explains why.

NO ONE HAS EVER SAID TO US, “I WISH I HAD TAKEN LONGER AND DONE LESS.”

Volume 8 ai:sight by Fractal

ai:sight by Fractal Volume 8

AUTHOR SPEAK: ANNE MORRISS

HOW TO FIX YOUR ORGANIZATION’S PROBLEMS IN SEVEN DAYS The week-long approach in Move Fast and Fix Things lays out a distinct agenda for each day.

This architecture works at the scale of a team but also the scale of an organization. So, when organizations are struggling with any kind of a problem, they should identify the stakeholder at the center of the problem and then look at the problem through this lens of trust and work out which of these three pillars is getting a little shaky on you: authenticity, logic or empathy. It matters because you can’t solve a logic problem by doubling down on empathy, and you can’t solve an authenticity problem by reinforcing logic. But we see this happening all the time. For example, many employees and companies are struggling with the core employment contract right now. Younger employees, in particular, want more meaningful work, for example, or they want to grow and advance at a faster rate. Those are logic needs. Yet employers are responding by providing yoga classes at lunch or offering organic snacks in the break room, which are empathy signals. This doesn’t help to strengthen relationships. It’s important to go one layer deep and figure out at a foundational level what’s happening with trust with whichever stakeholder is at the center of the problem. Doesn’t trust take a long time to be built? I believe that’s a myth. When trust breaks, it’s quite possible to rebuild it quickly. We see in practice that we’re constantly gaining and losing trust. The leaders, teams, and organizations that are most effective at rebuilding

it start with the conviction that it can be rebuilt and that it can be rebuilt quickly. They lean into figuring out what’s going on and then act with a sense of urgency on the solution. The larger message of your book is to “operate with urgency, be wildly ambitious, and fix as much as you can along the way”. Can you provide some strategies to help business leaders succeed in this regard? In the book, we give you a challenge for Monday through Friday. The logic is that you spend the first part of the week building trust. You’re figuring out what your plan is and then how to communicate that plan in a way that’s compelling to the people you need to act on the plan. And once you do that hard work, by the end of the week, you have earned the right to go fast. So, speed is the payoff for the fact that you have built a foundation of trust earlier in the week. Once you get there, it gets fun and tactical. One thing I will push you to dwell on is the idea of empowerment. It’s a very operational idea, even though it sounds very soft. It’s about distributed decision-making and organizational physics. So, if all decision matters must flow through a single point in your organization or just a few points, then speed will be a very clear trade-off. And if you can open that aperture even a bit, you can go much faster than in a world where only a few people are at the center of all critical decisions. There are lots of ways to empower an organization. One of my favorites

Move Fast and Fix Things: The Trusted Leader’s Guide to Solving Hard Problems is available to buy now.

IDENTIFY THE REAL PROBLEM HOLDING YOU BACK

MONDAY

Far too often, companies don’t tackle the root issues but instead focus on surface problems that mask what’s going on. The solution is to ask tough questions, build a team of problem solvers, and surface major roadblocks to progress. Then, gather new data and listen, really listen, with an anthropologist’s curiosity and a leader’s accountability.

About the Author: Anne Morriss is dedicated to helping people unlock their own potential — in the name of building extraordinary organizations. As founder of The Leadership Consortium (TLC), Anne Morriss is dedicated to building inclusive executive teams and preparing emerging leaders for senior roles. For the past 20 years, she has guided entrepreneurs, companies and governments throughout the United States and Latin America on strategy, leadership and organizational change. She has also put her own theory into practice: as CEO of GenePeeks, she oversaw a computational genomics company developing breakthrough ways to identify disease risk.

is The Ritz-Carlton. It has a policy of giving every employee on the payroll a budget of up to $2,000 to solve any customer problem. That number is shocking to some people, but solutions rarely require that kind of investment – a plate of cookies is usually sufficient. More important, it’s a very powerful signal to employees that they have permission from the organization to go out and solve problems by any means necessary. The steps in your book can be accomplished in a week. Can you explain why you took this approach? What can readers of the book expect to come away having achieved? We give you a week, but you have our blessing to take longer than a week to complete it. What we don’t want you to do is take months or even years, which tends to be our default timeline for solving hard problems. Most of our problems in organizations deserve a more urgent response. A metabolic rate that honors the frustration and the mediocrity and the real pain of the status quo. And so that’s really what we’re challenging our readers to do – to decide right now to move fast and fix the things that are truly in the way of their organization’s progress.

BUILD AND REBUILD TRUST IN YOUR COMPANY

TUESDAY

With the confidence that comes from knowing the right problem to solve, running smart experiments to steady trust ‘wobbles’ helps strengthen relationships with key stakeholders.

CREATE A CULTURE WHERE EVERYONE CAN THRIVE

WEDNESDAY

Creating the conditions where everyone can thrive as complex, multidimensional humans can lead to a better change plan – and better performance – by including more and more varied perspectives.

COMMUNICATE POWERFULLY AS A LEADER

THURSDAY

Creating change means developing a powerful narrative honoring the past (both the good stuff and the not-so-good), articulating a compelling change mandate, and describing a rigorous and optimistic way forward. Then, telling that story with emotion again and again makes it impactful.

GO FAST BY EMPOWERING THE TEAM AND REMOVING ROADBLOCKS

FRIDAY

A CULTURE OF SPEED IS KEYS TO UNLOCKING RAPID, ENSURING CHANGE

Leading change with a sense of urgency means empowering others to execute quickly. Clear strategy and a culture of speed are keys to unlocking rapid, enduring change.

Volume 8 ai:sight by Fractal

ai:sight by Fractal Volume 8

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