4 out of 5 Fortune100 cos will implement GenAI use cases in 2024: Fractal cofounder

The enterprise adoption of generative artificial intelligence is anticipated to surge in 2024, with projections suggesting that 80% of Fortune 100 companies will integrate related use cases, according to Srikanth Velamakanni, the co-founder and CEO of Fractal. Velamakanni shared this forecast on LinkedIn, emphasizing that the acceptance of generative AI in enterprises would be driven by improved mechanisms to address privacy and compliance-related risks. Fractal Analytics, based in Mumbai and New York, is a dedicated analytics company serving Fortune 500 clients and achieved Unicorn status in 2022.

Velamakanni envisions that AI assistants, applications, and agents will significantly enhance productivity in both repetitive cognitive and creative tasks. He predicts a 'near-universal' adoption of AI assistants for coding, potentially boosting productivity in about 30% of programming tasks. A study conducted by GitHub in June 2023, involving 500 US-based programmers, revealed that over 90% of them were already utilising AI-based coding assistants. Beyond coding, generative AI is expected to enhance the enterprise search and website search experience.

AI-based productivity boost, however, will result in ‘jobless growth’, which Velamakanni defines as growth in key sectors without corresponding job creation. While AI adoption will lower the cost of building and launching products, it will also affect early-stage funding requirements. A study by Nasscom-Zinnov this week found that 70% of startups are investing in AI to improve productivity and internal efficiencies. 

“India’s tech startup ecosystem has truly matured attracting more than $70 billion in cumulative funding between 2019 to 2023. This growth is now anchored in a strategic shift towards improving business metrics and revenue streams. DeepTech, a key innovation driver, accounts for just 14% of this funding, and needs an exponential acceleration to build India’s Deeptech ecosystem,” said Debjani Ghosh, President, Nasscom. The report added that 46% of the startup founders feel that the funding environment will improve in 2024, even though late-stage investments may lag.