AI’s fourth wave is here — are enterprises ready for what’s next?

As we stand on the brink of a technological revolution, businesses must adapt to the ever-evolving landscape of artificial intelligence. At Venture Beat's Transform 2025 conference, industry experts Yaad Oren from SAP and Stanford's Emma Brunskill discussed the imperative for companies to prioritize certain innovations to remain competitive over the next five years. Oren emphasized that generative AI represents a significant shift in the capabilities of artificial intelligence. He identified three key areas where this new wave of AI is poised to create substantial value and disruption within enterprises. The first focus is on enhancing user experience, fundamentally changing how individuals interact with software. The second area involves automation at the application layer, with SAP embedding around 230 AI functions in its applications, a number expected to grow to 400 by the end of 2025. This push aims to boost productivity and cut costs. The third area of impact concerns the core platforms that underpin business operations, raising critical questions about developer experiences, privacy, and trust. "We are witnessing significant changes in user experience, application functionality, and the foundational platforms that facilitate these advancements," Oren stated. Brunskill highlighted the importance of integrating AI with human creativity to foster societal benefits rather than detracting from human ingenuity. A recent study indicated that when AI tools are presented as enhancing tasks rather than merely boosting productivity, users are more likely to engage with them regularly. "This insight is crucial as we consider how to leverage these powerful systems for the benefit of customers and organizations alike," Brunskill explained. Oren added that the focus should always be on delivering business value. As technology continues to advance, enterprises need to ensure that AI serves a purpose beyond mere novelty. "The most attractive technologies often yield the least practical benefits. We must ask how these innovations can genuinely help companies reduce costs, improve productivity, and manage risks," he remarked. The conversation also touched on artificial general intelligence (AGI), a theoretical milestone where AI could match or exceed human problem-solving abilities across various tasks. Brunskill defined AGI as the point where AI can perform cognitive tasks at least as well as an average human in a professional setting. She expressed optimism about advancements in white-collar job functions over the next five years but warned that preparations for workforce transitions are necessary. Looking ahead, both speakers acknowledged the pivotal role of data in the future of AI. As the limits of real-world data sources are approached, the need for synthetic data and enhanced data quality will become paramount. They also noted the exciting prospects of robotics and quantum computing, which promise to revolutionize process optimization and simulation. As we approach a new era of AI, Oren concluded with a forward-looking statement about the next-generation user experiences that will shape the workforce of the future. "The upcoming generation will expect a vastly different user interface paradigm, one that demands emotional engagement and adaptability in technology," he said, urging companies to think creatively about the implications of these advancements.