The year 2024: when technology meets outdated structures!

Jahr 2024

The year 2024 will be remembered as a time when the gap between technological progress and organizational inertia became clearer than ever. Like a modern sports car stuck on a bumpy country road, it showed that even the most advanced technology cannot reach its full potential as long as organizations cling to outdated and rigid structures.

The AI revolution in 2024

In 2024, we experienced a real boom in artificial intelligence. According to a study, 73% of organizations planned to increase their AI investments, with the financial and healthcare sectors standing out in particular [source: 2]. The reasons for this were obvious: increasing efficiency and optimizing decision-making processes were the main drivers of this development.

The progress in the integration of generative AI was also impressive. Systems such as Claude 3 and GPT technologies not only dominated the market, but were also used for complex tasks such as data analysis and multi-level decision-making processes [source: 2]. These advances made work in various industries much easier.

The reality behind the scenes

But while technology made quantum leaps, organizational adaptation lagged behind. The year 2024 revealed a sobering reality:

  • Lack of strategy: 78% of non-profit organizations did not yet have a strategy or plan for the use of artificial intelligence [source: 1].
  • Skills gaps: With the exception of IT departments, employees’ AI skills were rated as low [source: 1].
  • Ethical concerns: Questions about data protection, ethics, copyright and costs in relation to artificial intelligence were the main concerns of managers [source: 1].

The crux of competence

A widespread misconception in 2024 was that every employee had to be proficient in AI. This led to excessive demands and frustration in many organizations. It turned out that it is perfectly sufficient if leading employees can master this technology and use it strategically.

In Germany, 23% of companies had already transferred more than half of their experiments with generative AI into production – a clear lead over the global average of 16% [source: 3]. This shows that targeted skills development among key personnel can lead to significant progress.

Structural hurdles in 2024

Despite technological advances, structural hurdles remained in 2024:

  • Talent shortage: 35% of companies in Germany considered the lack of technical talent to be a significant obstacle [source: 3].
  • Regulatory uncertainty: 30% saw regulatory uncertainty as critical [source: 3].
  • Reluctance to invest: Only 59% of German companies had further increased their investments in AI initiatives [source: 3].

These figures make it clear that technological progress alone is not enough. Organizational structures, personnel development and regulatory frameworks must keep pace in order to unleash the full potential of AI.

Bright spots and pioneers in 2024

Despite all the challenges, there were also encouraging developments in 2024:

  • Increased efficiency: Companies reported that AI enabled them to make an average of 18% of their internal processes more efficient [source: 2].
  • Multilingualism: AI assistants such as Claude 3 enabled seamless communication in different languages, which made international collaboration much easier [source: 2].
  • Cloud investments: 74% of German organizations had increased their investments in cloud solutions to create a solid database for future AI initiatives [source: 3].

The way forward: what needs to change in 2025

In order to bridge the gap between technological potential and organizational reality, the following aspects must be addressed in 2025:

  1. Strategic AI integration: Organizations need to develop clear strategies for the use of AI. This should not only include technological aspects, but also organizational changes and personnel development.
  2. Focused skills development: Instead of trying to turn all employees into AI experts, companies should concentrate on providing targeted training to key individuals in management positions and relevant departments.
  3. Agile organizational structures: Companies need to make their structures more flexible in order to be able to react more quickly to technological developments. This can include the introduction of agile working methods or the creation of interdisciplinary teams.
  4. Ethical guidelines: The development of clear ethical guidelines for the use of AI must be driven forward in order to create trust and reduce regulatory uncertainties.
  5. Investing in data security: With the increasing use of AI, data security is becoming even more important. Companies need to invest in robust security systems and practices.
  6. Fostering a culture of innovation: Organizations should promote a culture that encourages experimentation and learning from mistakes. This is crucial for the successful implementation of new technologies.
  7. Partnerships and collaborations: To overcome the talent shortage, companies should work more closely with educational institutions and other organizations to promote and recruit talent.
  8. Continuous training: Given the rapid pace of technological development, companies need to establish continuous training programs for their employees.
  9. Measurement and adaptation: Organizations should define clear metrics for the success of their AI initiatives and be prepared to adapt their strategies based on the results.
  10. Focus on sustainability: AI solutions should not only be efficient, but also sustainable. Companies need to consider the energy consumption and environmental impact of their AI systems

Conclusion: the lessons learned from 2024

The year 2024 has taught us that technological progress and organizational development must go hand in hand. No AI, no matter how advanced, can develop its full potential if it encounters outdated structures and unprepared employees.

The challenge for 2025 and beyond is to find a balance between innovation and stability, between technological expertise and human judgment, between efficiency and ethics. Organizations that master this balance will not only survive, but thrive in the AI era.

The year 2024 was a wake-up call. It has shown us that the true key to success lies not in technology alone, but in our ability to evolve as organizations and as a society. If we take this lesson to heart, we can look confidently to a future in which AI serves not as a threat, but as a tool for progress and prosperity.

Sources

  1. https://www.digitalisierungskompetenz.at/kuenstliche-intelligenz-und-digitalisierung-in-gemeinnuetzigen-organisationen-2024/
  2. https://www.kileague.de/blog/erkenntnisse-aus-dem-ai-adoption-report-2024
  3. https://www.deloitte.com/de/de/Industries/technology/research/ki-studie.html
  4. https://de.statista.com/statistik/daten/studie/1481123/umfrage/umfrage-zur-nutzung-generativer-ki-in-unternehmen-und-organisationen/
  5. https://www.digitalaustria.gv.at/dam/jcr:4132e710-187c-42e9-9329-a1449ddf484f/KI-Umsetzungsplan%202024%20final.pdf
  6. https://www.ki-strategie.at/2024/10/umsetzungsplan-2024-zur-nationalen-ki-strategie/
Dr. Claus Michael Sattler

P.O. Box 1142
28833 Weyhe
Germany

Phone: 0049 174 6031377

E-Mail: cms@sattlerinterim.com

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