Spotlight

Report:

The Forrester Wave™: AI Services, Q2 2024

How does Forrester define the AI Services market in 2024?

AI Services providers lead client transformation as they transform themselves. The AI journey has evolved from scarce talent and unreliable technology to generative AI (genAI) driving enterprise demand with more powerful, easier-to-use models and lower barriers to entry. GenAI created a catalyst for AI services providers to grow their businesses while transforming their own operations. AI leaders should now seek providers that offer business transformation support beyond simple partnering and augmentation, looking for those that: 1) Impart their own AI transformation journey experience, 2) Link AI solutions explicitly to the balance sheet, 3) Build executive behaviors, change management, and AI ownership, and 4) Appropriately address AI risk while advancing AI reward.

Key Facts for The Forrester Wave™: AI Services, Q2 2024 in 2024

How did the AI Services market evolve in 2024?

What product features are required to be included in this year's evaluation?

What are the common features of top products in the AI Services space?

No common features specified.

Scope Exclusions

Inclusion Criteria

Vendors must, among other requirements:

Offering Strengths — Relative Weighting

Strategy Strength — Relative Weighting

FAQs

Q: What does this research cover?

A: This research evaluates nine leading AI services providers across 19 criteria grouped into current offering, strategy, and market presence. The evaluation focuses on how providers help enterprises adopt AI, particularly generative AI, for business transformation. It examines providers' capabilities in areas such as business impact, AI risk management, change management, executive education, AI governance, design and development approach, and their own AI transformation experience.

Q: Who should use this research?

A: This research should be used by AI leaders and professionals who are selecting an AI services provider to support their organization's AI adoption and transformation journey. It helps buyers identify providers that can deliver business impact, manage AI risk appropriately, support organizational change, link AI solutions to financial outcomes, and provide transformation expertise based on the provider's own genAI disruption experience. Organizations can use the customizable Excel-based vendor comparison tool to adapt criteria weightings to their specific needs.

Q: What are the mandatory features of vendors included in this market?

A: Vendors included in this evaluation must have: 1) Over $250 million in revenue in the past year, 2) A substantial business consulting arm with qualifications to support AI engagements where business consulting is a primary competency that may be delivered outside of AI-specific engagements, 3) Demonstrated relevance to Forrester clients for both business and technology objectives specific to AI initiatives, and 4) High prevalence in competitive RFI/RFP processes and frequent mentions by AI services competitors during Forrester's research.

Q: What are some reasons for not being included in this report?

A:

  • Revenue below $250 million threshold
  • Lack of substantial business consulting arm within the organization
  • Business consulting not being a primary competency
  • Insufficient demonstrated relevance to Forrester clients for AI initiatives
  • Low prevalence in competitive RFI/RFP processes
  • Infrequent mentions by AI services competitors during research
  • Declined to participate in or contributed only partially to the evaluation process

Q: What should buyers consider when evaluating products in this market?

A:

  • Seek providers that impart their own AI transformation journey experience within their AI offer and bring proven approaches to limit friction of AI disruption
  • Look for frameworks that link AI solutions explicitly to the balance sheet with meaningful methods to measure AI outcomes and impact combining executive, operational, IT, and governance views
  • Evaluate providers that build executive behaviors, change management, and AI ownership with operating model frameworks for sustainable and scalable AI business results
  • Ensure providers appropriately address AI risk management while advancing AI reward, instilling AI governance up front as a strategic tool to de-risk and accelerate AI adoption
  • Consider providers' experience with business disruption and operations challenges
  • Assess ability to formulate outcome-based contracts related to substantial metrics for revenue and profitability
  • Evaluate change management capabilities from inception to deployment and operations
  • Review AI governance competency to operate AI and ensure regulatory compliance

Q: How has the AI Services market evolved in 2024?

A:

  • Generative AI changed the enterprise AI landscape with more powerful, easier-to-use models and lower technology barrier to entry
  • Consumerization of AI technology created top-down and bottom-up adoption pressure for enterprise productivity and transformation gains
  • GenAI provided a catalyst for AI services providers to grow their AI businesses by helping enterprises adopt genAI
  • AI services providers recognized how genAI would transform themselves and the industry
  • Shift from incremental AI improvements to business transformation focus
  • Movement from time and materials pricing to outcome-based contracts
  • Integration of change management and executive education into AI projects from inception
  • Increased focus on AI governance as a must-have due to regulatory scrutiny and enforcement

Q: What differentiates Strength of Offering vs. Strength of Strategy?

A: Current Offering (50% weight) evaluates each vendor's position on the vertical axis and measures the strength of their current service delivery capabilities, including business strategy, business impact, AI risk management, change management, executive education, AI center of excellence, talent, design approach, platforms, governance, and GenAI operations. Strategy (50% weight) evaluates placement on the horizontal axis and measures the strength of vendors' strategies for future growth and market leadership, including vision, innovation, partner ecosystem, pricing flexibility, community engagement, and talent strategy.

Reference

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