Thursday, November 21, 2024

Even Reluctant AI Adopters Can Achieve Triple ROI

Employee productivity is a key benefit of generative AI (GenAI) technology, according to a recent survey. Over the next couple of years, businesses will increasingly focus on specific functional and industry applications of this technology.

A study from IDC, surveying 3,476 people, found that 43% believe the productivity use case currently offers the best return on investment. Microsoft commissioned this survey, revealing that for every dollar spent on GenAI, organizations typically see a return of about 3.7 times that amount. IDC classifies an AI leader as a company whose AI strategy aligns with its business goals and creates ongoing value through innovative business models. Those companies using GenAI effectively reported an impressive tenfold return on their initial investments.

The pace of AI adoption is also encouraging. Companies are deploying AI solutions in under eight months on average, and they start realizing value within 13 months. The survey highlighted a notable difference in speed: 29% of AI leaders can implement AI in less than three months, compared to just 6% of those lagging behind. Even the AI laggards aren’t left behind, though—they’re still seeing nearly three times their original investment on average. Regionally, North America has the fewest laggards at 16%, while Western Europe and Asia-Pacific have significantly higher percentages at 31% and 32%, respectively.

One company leveraging Microsoft Azure OpenAI is Moody’s Analytics. Nick Reed, their chief product officer, noted that they’re making market data more accessible than ever. “We provide information on financial markets to help customers make informed investment decisions,” he said. The Moody’s Research Assistant, built on Azure OpenAI, allows customers to extract insights from credit research, saving users up to 25% of the time typically spent on tasks that financial analysts handle.

While many organizations today rely on pre-built AI solutions like Microsoft Copilot, the IDC survey showed a shift on the horizon. Currently, 43% of respondents are using pre-built AI, but that number drops to 25% when looking at plans for the next 24 months. Conversely, while only about 19% are building custom AI now, that number could rise to 36% in the same timeframe.