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Gartner: Demand Grows for Intelligent Applications Powered by AI

By Jim Hare

 

Intelligent applications are augmented with artificial intelligence (AI) and infused with data from transactions and external sources. As seen with generative AI (GenAI), they learn from their interactions, improving autonomous responses over time and potentially transforming the experience of customers, users, product owners, architects and developers. This shows that intelligent apps go beyond just GenAI.

 

Gartner predicts that by 2026, 30% of new applications will utilize AI to power personalized adaptive user interfaces, a significant increase from the current rate of less than 5%. Here are three advantages of AI enhancing software applications with greater intelligence:

 

  1. Intelligent decision making enables a systematic connection between analytics and continuous, contextual and connected decision making.
  2. Adaptive experiences, like chatbots and natural language interfaces, respond to user needs.
  3. Process augmentation and transformation increases automation and dynamic business transformation, unlike traditional business information apps.

 

A Look at Examples of Intelligent Apps Driving Automation, Augmentation and Adaptability

Intelligent applications recommend or automate actions instead of simply providing analysis. This allows them to drive improvements, such as better personalization, more efficient use of resources, improved accuracy, increased automation, and more detailed responses and decision support. Customers are increasingly demanding these types of intelligent outcomes. Below are a few examples:

 

  • Automation: Property insurance apps that monitor weather, satellite and other data could automatically file a claim when predetermined anomalies, such as rising floodwaters, occur. Others could provide discounts to certain policyholder segments after sustained periods of reduced risk.
  • Augmentation: An application that grants credits via dynamic pricing models driven by machine learning and contextual understanding of supply and demand.
  • Adaptiveness: An HR employee self-management application that offers shortcuts based on what that user and their peers use most or at certain times of year, such as for compliance training and performance review updates.

 

How High-Tech Product Leaders can Seize Opportunities in Intelligent Software Apps?

High-tech leaders must identify the most impactful use cases by selecting well-known, difficult-to-solve challenges within core processes and across industries and segments. They must then carefully construct a strategic decision model to determine when their organization will develop capabilities, acquire suitable technology companies, or partner with leading providers. Additionally, they should investigate revenue potential by quantifying the potential value and unique outcomes that can be achieved within their customer base.

 

Ultimately, business leaders should note that intelligent applications featuring behaviours and outcomes as a result of learning driven by one or more AI techniques are poised to revolutionize industries across the globe. With the ability to learn, adapt, and generate new ideas and outcomes, these advanced applications hold tremendous potential for creating value and disrupting markets in ways previously unimaginable.

 

CIOs and IT executives will learn how to meet the moment and provide the vision and results needed to lift their organizations to the next level at the Gartner IT Symposium/Xpo, taking place November 28-30 in Kochi, India.

 

 

(The author is Jim Hare, Distinguished VP Analyst, Gartner , and the views expressed in this article are his own)