In just over two years since the launch of OpenAI's groundbreaking chatbot, ChatGPT, the business world has seen a dramatic shift in how companies approach artificial intelligence (AI). Initially, many organizations treated AI as a novelty, experimenting with its capabilities in isolated areas. However, 2024 marks a pivotal year where AI is no longer just an experiment—it's a core element of business strategies across industries.

James Dyett, head of platform sales at OpenAI, highlighted the significant transition: “2023 was really a year of industry and businesses wrapping their heads around AI. 2024 is the year we’re starting to see real-scale deployments of our technology." This shift comes as businesses have become increasingly confident in AI's potential to drive productivity, enhance customer experiences, and unlock new revenue streams.

Fortune's second annual list of the "50 AI Innovators" showcases companies that have made significant strides in AI, from massive corporations to nimble startups. Among the biggest names are Microsoft, Nvidia, and Salesforce, as well as emerging players like ElevenLabs and Mistral, all leading the way in AI development and adoption.

While established tech giants like Microsoft have rapidly integrated AI into their offerings, many startups are innovating in niche sectors. Xaira Therapeutics, for example, is leveraging AI for drug discovery, aiming to revolutionize the drug development process. With over $1 billion in funding, the company is pushing forward with AI to speed up the development of new treatments. Another example is Abridge, which uses AI to streamline healthcare documentation, alleviating burdens on clinicians and improving patient care.

However, despite the rapid pace of AI adoption, challenges persist. Many companies are still grappling with high model training costs and the difficulty of scaling their AI applications. As competition intensifies, businesses must not only secure paying customers but also ensure their AI products stand out in a crowded market. The likelihood of industry consolidation remains high, with some players expected to fall by the wayside as the AI landscape matures.

One area with enormous potential is healthcare, where AI can address long-standing issues like staffing shortages and administrative inefficiencies. McKinsey estimates that AI could unlock $370 billion in value for the sector by improving drug discovery, personalizing treatments, and streamlining operations. In fact, AI's ability to optimize healthcare processes has already caught the attention of major firms, with companies like Microsoft and OpenAI securing high-profile partnerships in the biotech and finance sectors.

Eric Boyd, corporate vice president at Microsoft Azure AI, advises business leaders to think beyond incremental improvements and reimagine how AI can transform their operations. He argues that executives may be missing out on opportunities to completely overhaul business models, especially in industries like healthcare and finance, where AI's impact could be profound.

The creative industries, too, are embracing AI, but they face unique challenges around ethics, copyright, and the displacement of human workers. AI video company Runway, for example, is helping film studios speed up production by generating video clips from text prompts, offering new possibilities for content creation. At the same time, concerns about the future of creative professions are prompting discussions about how to balance innovation with protection for artists.

As businesses continue to explore the full potential of AI, the next wave of breakthroughs is likely to come from bold experimentation and risk-taking. OpenAI's Dyett suggests that companies that venture into uncharted territories—whether through new AI applications or groundbreaking business models—will set the stage for the next major leap in the AI revolution.

With AI’s applications expanding rapidly across sectors from healthcare to entertainment, businesses today must prepare for a future where AI not only improves efficiencies but also reshapes entire industries. Companies that seize this opportunity to integrate AI effectively will be well-positioned to lead the way in the next phase of digital transformation.

FORTUNE