Tech investment bank GP Bullhound has predicted 2024 will be the year of artificial intelligence and see a return of the space race in its 17th Technology Predictions.

GP Bullhound is a leading technology advisory and investment firm and its annual Technology Predictions report claims to have been nearly 90 per cent accurate in the past five years and over 80 per cent in the past decade.

The company also believes 2024 will see a surge in immersive education investments.

Per Roman, managing partner, and Alec Dafferner, partner at GP Bullhound, said: “As we transition into 2024, the profound impact of artificial intelligence on technology and its future is undeniable. In a climate of economic uncertainty, AI is the cornerstone of our forecasts for the coming year.

“Key trends include the organisation of legacy data, the commoditisation of large language models, and the ongoing semiconductor shortage, driven by increasing demand for AI-optimised hardware.

“These developments are opening up new avenues, such as the revitalisation of space exploration. As we navigate this complex yet exhilarating landscape, our predictions for 2024 offer insights into the upcoming opportunities and challenges that await us all.”

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GP Bullhound has made a total of 10 tech predictions for 2024.

  1. Large language models (LLM) become smaller, disrupting the AI market

With the highest-performing AI models being closed-source and commercial, a counter-movement is emerging in the open-source community to develop smaller models which are just as performant, yielding better results in some cases.

  1. Bits to billions: legacy data spurs acquisition boom

90 per cent of enterprise data is unstructured, but it’s no longer useless as companies turn to generative AI to improve operational efficiencies and unlock value within their data.

  1. Private sector to spearhead space revitalisation

Satellites orbiting Earth to increase from c.8,000 today to over 100,000 in the next 10 years, with private sector companies leading a new space race as the industry goes commercial.

  1. The rise of authenticity as creators challenge AI

Tools that obstruct AI from training off human-created content will surge next year as 2024 is geared to become a battleground between AI-generated and human-created content.

  1. AR/VR & AI fuel a surge in immersive education investments

Enterprises are leveraging AR and VR to train and upskill  employees in unprecedented ways, especially in medical and high-risk professions, while demand for AI-powered learning is driving billions in funding for EdTech companies.

  1. Apple’s expanded subscription service with ad-free search engine

An Apple search engine to rival Google’s is the missing piece in the company’s internet strategy, despite the latter’s hefty annual payments of c.$20bn to be the default engine on iOS.

  1. Anti-money laundering and payment protections come centre-stage

The number of regulatory compliance platforms is increasing as illicit wallets send c.20 per cent of funds through DeFi, with the AML market, driven by digital transactions, poised to grow at a CAGR of 16 per cent between 2023 and 2030.

  1. AI is reshaping media with personalised content and acquisitions

AI was one of the few resilient areas in the 2023 market downturn, with $23bn in funding in the US alone; M&A activity and big takeovers are set for 2024 as businesses rethink entire offerings to harness its power to remain competitive.

  1. AI race escalates semiconductor shortage

AI-driven applications are multiplying, adding strain on semis supply that caters to them, with large cloud providers in a race to invest in GPUs or risk falling behind

  1. Acceleration of carbon accounting as new regulations loom

A profound time for companies that offer automated carbon accounting software as businesses brace themselves for new government requirements for emissions calculations in 2024; only 10 per cent comprehensively measured emissions last year as processes are overwhelmingly manual.

GP Bullhound was founded in 1999 in London and Menlo Park, the firm has 14 offices spanning Europe, the US and Asia.

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