The Rapid Evolution of Enterprise AI

This past week I attended an analyst summit at Oracle CloudWorld. It also is the week before Salesforce Dreamforce so we’re getting a preview of the announcements next week, and have seen many announcement from them over the past few weeks. The pace of change and innovation is not slowing, particularly in the enterprise applications world. The direction of enterprise generative AI, and the way it can create value for the enterprise is becoming clearer. Unfortunately though, some of the experiments that businesses have conducted over the past 18 or so months have not provided the expected value, which is causing some negative buzz. There are several reasons for that, including:

  • Lack of predefined goals, outcomes and success metrics

  • Overly aggressive expectations on the productivity gains the tools can deliver in a short period of use.

  • Lack of employee training

  • Use of generative AI disconnected from business processes.

  • Lack of embedded generative AI capabilities

This is changing though, as the rapid integration and embedding of AI into enterprise applications reshapes how businesses operate, particularly with the fusion of embedded generative AI and traditional AI. Embedded traditional AI has long powered data-driven decision-making and operational efficiencies across industries, but the rise of generative AI introduces a new dimension—enabling systems to create, reason, and generate insights dynamically. As these technologies converge, a new era of AI-driven innovation is emerging, particularly with autonomous agents that not only automate tasks but also learn and adapt to complex scenarios. By combining the precision and reliability of traditional AI with the creativity and adaptability of generative AI, enterprises can leverage more sophisticated solutions, enhancing everything from customer service to product development. This evolution signals a shift toward AI systems that are both proactive and reactive, marking a transformative moment in enterprise technology.

Embedded AI

Generative AI is being integrated into enterprise applications in ways that enhance and automate business processes, building upon how traditional AI has been applied for years. Traditional AI has focused on predictive analytics, pattern recognition, and automation for tasks like customer segmentation, fraud detection, and supply chain optimization. Generative AI, in contrast, adds the ability to create new content, ideas, and even entire workflows, unlocking new possibilities for enterprises. Here’s how generative AI is enhancing business processes:

  • Content Creation and Personalization

Traditional AI: Used to analyze user behavior and preferences for personalized recommendations (e.g., recommending products or content in e-commerce or media).

Generative AI: Goes further by generating new content, such as personalized marketing emails, product descriptions, and social media posts at scale. It can create variations tailored to different customer segments, speeding up content production and reducing human effort.

  • Code Generation and Application Development

Traditional AI: Helps identify bugs in software code, optimize code for performance, and provide development suggestions based on previous code patterns.

Generative AI: Automates writing actual code, generating application logic, and even UI/UX designs. Tools like GitHub Copilot or OpenAI’s Codex assist developers by generating code snippets, templates, or even entire applications, drastically reducing development time.

  • Document Processing and Summarization

Traditional AI: Automates data extraction from documents (e.g., invoices, contracts), classifies documents, and provides basic summaries of text.

Generative AI: Can generate more sophisticated, human-like summaries of complex documents, contracts, or meeting transcripts. It can draft contract clauses, auto-fill forms based on context, and summarize customer support interactions for faster decision-making.

  • Customer Support and Conversational AI

Traditional AI: Powers chatbots that handle frequently asked questions and escalate issues to human agents.

Generative AI: Enhances these bots with more natural, nuanced conversations. These AI systems can now handle open-ended queries, generate human-like responses, troubleshoot problems, and even proactively suggest solutions based on prior interactions or internal knowledge bases.

  • Process Automation and Workflow Generation

Traditional AI: Automates routine, repetitive tasks (like invoice processing, ticket routing) through rule-based systems and predictive algorithms.

Generative AI: Moves beyond basic task automation to suggest and even create new workflows and processes. It can generate recommendations for optimizing workflows based on historical data, or dynamically create process variations based on changing conditions in real time.

  • Decision Support and Strategic Planning

Traditional AI: Offers predictive insights based on past data (e.g., demand forecasting, customer churn prediction), which inform decision-making.

Generative AI: Can generate various “what-if” scenarios, create detailed business strategy proposals, and even simulate different operational strategies. This allows businesses to test strategies or responses to market changes virtually before implementing them.

  • Design and Prototyping

Traditional AI: Used to analyze customer preferences and behaviors to inform product designs or help with iterative improvements.

Generative AI: Automatically generates design prototypes, marketing visuals, or product concepts, offering rapid ideation and iteration. For example, it can generate multiple versions of a product design, allowing companies to test and evaluate options more efficiently.

  • Human Resources and Talent Management

Traditional AI: Used to filter resumes, match candidates to job descriptions, and predict employee retention.

Generative AI: Can generate job descriptions, training materials, and performance reviews. It also enhances employee engagement by creating personalized development plans and offering automated career path suggestions based on skills and goals.

Generative AI is adding creative, dynamic, and context-aware capabilities to enterprise applications, automating not just repetitive tasks but also the creation and optimization of new processes and content. This opens the door to more innovative, responsive, and scalable business operations across industries.

Autonomous Agents

Autonomous AI agents represent a significant leap in automation, designed to function independently without human intervention in various business operations. These agents leverage large language models (LLMs), natural language processing (NLP), and machine learning to carry out tasks such as customer service, sales support, marketing automation, and internal business processes. Salesforce’s recent introduction of Autonomous AI Agents for Service Cloud is an example of how these agents are driving innovation and delivering value.

Key Innovations in Autonomous AI Agents

  • Task Automation Without Human Supervision: Autonomous AI agents can perform complex workflows, from answering customer queries to processing transactions, without needing human supervision. They can handle tasks that would traditionally require multiple human interactions by understanding context, learning from data, and taking actions accordingly.

  • Real-Time Decision Making: These agents can make real-time decisions based on vast datasets, enabling faster and more accurate responses. They are capable of analyzing customer sentiment, identifying patterns, and suggesting personalized actions, which enhances customer engagement and operational efficiency.

  • Continuous Learning and Improvement: Autonomous agents are built on machine learning models that continually learn from interactions. Over time, they become better at anticipating customer needs, solving problems, and adapting to new data inputs. This capacity to self-improve ensures they stay effective in dynamic environments.

  • Multimodal Capabilities: Many of these agents are capable of interacting across multiple modalities, such as text, voice, and images. This makes them more versatile in customer service, sales, and marketing scenarios, allowing businesses to provide more interactive and engaging customer experiences.

How Autonomous AI Agents Drive Innovation and Deliver Value

  • Enhanced Customer Experiences: By providing faster, more accurate, and 24/7 service, autonomous AI agents elevate customer experience. They can handle more routine tasks, freeing up human agents to focus on high-value, complex issues. This leads to improved customer satisfaction and retention.

  • Operational Efficiency: With their ability to operate continuously, autonomously, and at scale, these agents reduce the need for manual intervention in many processes. This boosts operational efficiency, cuts costs, and allows businesses to scale their operations without needing proportional human resources.

  • Revenue Growth: Autonomous agents can assist sales teams by generating leads, responding to inquiries, or even closing deals based on predetermined criteria. By streamlining the customer journey and providing real-time support, they contribute to higher conversion rates and revenue growth.

  • Data-Driven Insights: These agents can analyze large volumes of data in real-time, providing businesses with actionable insights. For instance, they can detect trends in customer feedback, suggest product improvements, or identify bottlenecks in service delivery. This helps businesses stay ahead of market trends and make more informed decisions.

  • Personalization at Scale: AI agents can analyze customer data to deliver hyper-personalized experiences. By understanding preferences, purchase history, and behavior patterns, they can offer tailored solutions to customers, enhancing loyalty and driving engagement.

Use Case Examples

  • Salesforce Service Cloud: Salesforce’s Autonomous AI Agents are designed to work alongside human agents, automating routine tasks, handling complex customer interactions, and providing detailed insights into customer service operations. The Agentforce platform, part of this initiative, is focused on optimizing human-AI collaboration.

  • Customer Service: Autonomous AI agents are transforming customer service by responding instantly to inquiries, troubleshooting issues, and escalating problems only when necessary. For example, an AI agent in a telecommunications company can troubleshoot network problems by guiding the customer through diagnostic steps, escalating to a human agent only if the problem persists.

  • E-Commerce: Autonomous agents in e-commerce can handle everything from processing orders, managing returns, and providing product recommendations to personalizing marketing offers based on a customer's browsing history and preferences.

By driving automation, efficiency, and personalization, autonomous AI agents are reshaping how businesses deliver value, enhance customer experience, and stay competitive in a rapidly evolving digital landscape.

Low / No Code AI Platforms

Low-code and no-code AI platforms enable businesses to innovate and deliver value by reducing the barriers to implementing AI solutions, fostering creativity, and speeding up development processes. Here’s how they do it:

  • Empowering Non-Technical Users

Accessible to Non-Developers: Low-code/no-code AI platforms offer intuitive interfaces, allowing business professionals without deep technical knowledge to build and deploy AI models. This democratization of AI enables teams across departments to innovate directly, reducing reliance on IT or data science teams.

Rapid Prototyping and Experimentation: With simple drag-and-drop interfaces and pre-built AI components, business users can quickly experiment with AI-driven solutions, test ideas, and iterate, encouraging a culture of experimentation and innovation.

  • Accelerating Time-to-Market

Faster Development Cycles: These platforms significantly reduce development timelines. Pre-built models, templates, and integrations allow companies to go from idea to deployment much faster than traditional coding methods.

Automated Processes: Many low-code/no-code platforms automate much of the AI workflow, such as data preparation, model selection, and hyperparameter tuning. This frees up time for developers and business users to focus on solving strategic business problems.

  • Enabling Customization and Personalization

Tailored AI Solutions: Low-code/no-code platforms allow businesses to easily customize AI applications to fit their specific needs, whether it’s automating internal workflows, enhancing customer interactions, or optimizing supply chains.

Personalized Customer Experiences: AI-driven insights from these platforms enable companies to deliver personalized products, services, and experiences at scale, improving customer satisfaction and retention.

  • Driving Cost Efficiency

Lower Development Costs: Businesses can cut costs by reducing the need for specialized AI development teams and expensive third-party development. This allows small and medium enterprises to access cutting-edge AI technologies that were once limited to large corporations.

Minimizing Maintenance Costs: Low-code/no-code platforms often handle updates, model maintenance, and infrastructure management, reducing the ongoing operational burden.

  • Encouraging Cross-Department Collaboration

Fostering Innovation: With the barrier to entry lowered, teams from marketing, sales, HR, or operations can collaborate on AI-driven projects. This cross-functional engagement often leads to more holistic and innovative solutions, driving business value across multiple areas.

Agility and Adaptability: Low-code/no-code platforms allow businesses to quickly pivot and adjust their AI models or applications in response to changing market conditions, ensuring they stay ahead of competitors.

  • Enhancing Decision-Making with AI Insights

Data-Driven Innovation: AI models built on low-code/no-code platforms can analyze large datasets, providing actionable insights to drive strategic decisions. These insights help businesses identify new opportunities, optimize processes, and improve product offerings.

By simplifying AI adoption, low-code and no-code AI platforms empower companies to innovate faster, deliver customer-centric solutions, and increase operational efficiency while reducing the complexity and cost traditionally associated with AI development.

 The rapid evolution of enterprise AI is reshaping business operations by combining traditional AI with generative AI capabilities. This convergence is transforming how enterprises approach decision-making, automation, and customer engagement. The integration of autonomous AI agents and low-code/no-code platforms is lowering the barriers to AI adoption, making it easier for businesses to innovate, reduce costs, and enhance operational efficiency. As AI continues to evolve, enterprises that embrace these technologies will be well-positioned to drive growth, enhance customer experiences, and remain competitive in an increasingly digital world.

Michael Fauscette

Michael is an experienced high-tech leader, board chairman, software industry analyst and podcast host. He is a thought leader and published author on emerging trends in business software, artificial intelligence (AI), generative AI, digital first and customer experience strategies and technology. As a senior market researcher and leader Michael has deep experience in business software market research, starting new tech businesses and go-to-market models in large and small software companies.

Currently Michael is the Founder, CEO and Chief Analyst at Arion Research, a global cloud advisory firm; and an advisor to G2, Board Chairman at LocatorX and board member and fractional chief strategy officer for SpotLogic. Formerly the chief research officer at G2, he was responsible for helping software and services buyers use the crowdsourced insights, data, and community in the G2 marketplace. Prior to joining G2, Mr. Fauscette led IDC’s worldwide enterprise software application research group for almost ten years. He also held executive roles with seven software vendors including Autodesk, Inc. and PeopleSoft, Inc. and five technology startups.

Follow me @ www.twitter.com/mfauscette

www.linkedin.com/mfauscette

https://arionresearch.com
Previous
Previous

Table Augmented Generation

Next
Next

From Content to Action, The Evolution of AI Agents