ORLANDO, Fla. — Though enterprises will continue to adjust workflows to better embrace generative AI, the technology isn’t going anywhere, anytime soon.
AI will disrupt every part of business strategy, said Daryl Plummer, distinguished VP analyst at Gartner, during the firm’s IT Symposium/Xpo Tuesday.
“Don’t waste time trying to separate it out,” Plummer said. “Instead, create a specific AI discipline for all of your strategic priorities.”
CIOs have struggled this year to reach AI goals as they address complex data challenges and manage ballooning costs.
“A lot of people thought that using everyday AI would be as easy as ChatGPT,” Mary Mesaglio, distinguished VP analyst at Gartner, said during the event’s keynote Monday. “It’s not.”
With the fast pace of innovation, it is challenging to accurately anticipate AI’s impacts, Plummer said. Around 75% to 80% of the firm’s past predictions have come true, according to Gartner.
Here are four predictions on the future of AI pulled from Gartner’s top 10 list:
1. Through 2026, 1 in 5 organizations will flatten their organizational structure through AI, eliminating more than half of current middle management positions.
Trimming middle management will become more feasible for enterprises as AI takes on more tasks with better performance and increases the efficiency of lower-level workers, Plummer said.
“If you don’t generate more value in your position, then you’re going to be facing bad news,” Plummer said.
The shift could improve flexibility and work-life balance for lower-level workers and senior leaders, who are expected to rely on AI agents to autonomously complete tasks, monitor progress and facilitate easier reporting. For CIOs, the shift calls for a more effective use of human resources.
2. By 2027, 70% of employee contracts will include licensing and fair usage clauses for AI representations of their personas.
AI could soon change the way contracts are drawn up for business employees.
“Everyone of us may be subject to the idea that our company wants to turn us into an AI avatar,” Plummer said. “But what happens, for instance, if you get unfortunately fired or decide to retire and then the company decides to keep using the avatar?”
The use of AI avatars that act as employees will raise many questions about privacy and compensation. Plummer recommended workers with expertise, especially those tasked with providing strategic direction and guidance, think about how they want an employer to use their image and likeness.
For some, the use of avatars could result in a big payday from royalties.
3. By 2028, one-quarter of enterprise breaches will be traced back to AI agent abuse, from external and malicious internal actors.
CIOs should strengthen security practices ahead of the proliferation of agents and autonomous AI capabilities, which are likely to become prime targets for threat actors.
Vendors are pushing agents as the next step in enterprise AI adoption. Microsoft said earlier this week it plans to roll out AI agents in Copilot Studio next month. SAP expanded its copilot Joule’s capabilities to include collaborative agents that can resolve invoice disputes and automate ledger updates. Slack is also adding agents to its platform, featuring a new interface.
“The threat surface is getting bigger all the time,” Plummer said.
A "human-in-the-loop" approach to ensuring security and accuracy will only work for so long, Plummer said. Businesses will need to invest in a mature security environment.
4. By 2029, 1 in 10 global boards will use AI guidance to challenge material executive decisions.
Boards will begin to use AI to inform next actions, Plummer said.
Currently, most boards lack the necessary expertise to effectively use AI, and many are still gauging their role in governing the technology. In a few years, Gartner anticipates boards will build the skills and incorporate the technology into their processes.
“Consolidation will accelerate and that management structure will flatten even more,” Plummer said. CIOs and other C-suite members will need to evolve how they address the board as members will use AI to judge specific strategies and the success of leadership.
