In 2024, generative AI emerged as a key driver for business outcomes across every industry. Already this new generation of AI is having an incredible impact on our world — yet companies and industries are just scratching the surface of what’s possible as they continue to develop new use cases across every role and function.
To help guide organizations on their AI transformation journey, Microsoft recently commissioned a new study through IDC, The Business Opportunity of AI. IDC’s findings show that when organizations truly commit to and invest in AI, the return on investment (ROI) potential grows significantly.
According to IDC, the study’s findings reflect a tipping point as AI gains momentum across industries. As companies worldwide go deeper with AI, Microsoft customers continue to deploy innovative new solutions and discover how tools like Copilot can transform their day-to-day work. In telecommunications, Lumen Technologies estimates Copilot is saving sellers an average of four hours a week, equating to $50 million annually. In healthcare, Chi Mei Medical Center doctors now spend 15 minutes instead of an hour writing medical reports, and nurses can document patient information in under five minutes. Pharmacists are now able to double the number of patients they see per day. In retail, AI models help Coles predict the flow of 20,000 stock-keeping units to 850 stores with remarkable accuracy, generating 1.6 billion predictions daily.
IDC’s 2024 top 5 trends for AI
IDC’s findings align with what Microsoft is seeing as we work with companies across industries to deploy AI. We’ve highlighted more than 200 of our top AI customer stories to show a sampling of how AI is already driving impact today. Below is a look at the top trends we’re seeing in IDC’s study and the impact of those trends on organizations working with AI today.
#1 Enhanced productivity has become table stakes. Employee productivity is the No. 1 business outcome that companies are trying to achieve with AI. The study shows that 92% of AI users surveyed are using AI for productivity, and 43% say productivity use cases have provided the greatest ROI. While productivity is a top goal, generative AI use cases that are close behind include customer engagement, topline growth, cost management and product or service innovation — and nearly half of the companies surveyed expect AI to have a high degree of impact across all those areas over the next 24 months.
Customer snapshot:
At the global marketing and advertising agency dentsu, employees are already saving 15 to 30 minutes a day using Copilot for tasks such as summarizing chats, generating presentations and building executive summaries.
“Copilot has transformed the way we deliver creative concepts to our clients, enabling real-time collaboration. Agility, security and uniqueness are crucial, but our goal is to lead this transformation company-wide, from top to bottom.”
— Takuya Kodama, Business Strategy Manager at dentsu
#2 Companies are gravitating to more advanced AI solutions. In the next 24 months, more companies expect to build custom AI solutions tailored directly to industry needs and business processes, including custom copilots and AI agents. This shows a growing maturity in AI fluency as companies realize the value of out-of-the-box use cases and expand to more advanced scenarios.
Customer snapshot:
Siemens has developed the Siemens Industrial Copilot, which has eased the challenges caused by increasing complexity and labor shortages for dozens of customers in different industries.
“In full appreciation of GenAI’s transformational potential, it’s important to remember that production does not have an ‘undo’ button. It takes diligence and effort to mature AI to industrial-grade quality. The Siemens Industrial Copilot for Engineering significantly eases our customers’ workload and addresses the pressing challenges of skill shortages and increasing complexity in industrial automation. This AI-powered solution is a game-changer for our industry with over 50 customers already using it to boost efficiency and tackle labor shortages.”
— Boris Scharinger, AI Strategist at Siemens Digital Industries
#3 Generative AI adoption and value is growing across industries. Even though it is relatively new to the market, generative AI adoption is rapidly expanding — 75% of respondents report current usage up from 55% in 2023. The ROI of generative AI is highest in Financial Services, followed by Media & Telco, Mobility, Retail & Consumer Packaged Goods, Energy, Manufacturing, Healthcare and Education. Overall, generative AI is generating higher ROI across industries.
Customer snapshot:
Providence has leveraged AI to extend and enhance patient care, streamline processes and workflows and improve the effectiveness of caregivers.
“Whether we’re partnering with organizations on the leading edge of this technology — like Microsoft — and building bespoke solutions through Azure OpenAI Service, advancing clinical research to help cancer patients receive personalized and precise treatments faster, or ‘hitting the easy button’ and adopting established technologies like Microsoft 365 Copilot or DAX Copilot, we have successfully stayed on the forefront of this tech revolution. For example, physicians who use DAX Copilot save an average of 5.33 minutes per visit, and 80% of physicians have reported lower cognitive burden after using DAX Copilot.”
— Sarah Vaezy, EVP, Chief Strategy and Digital Officer at Providence
#4 AI leaders are seeing greater returns and accelerated innovation. While companies using generative AI are averaging $3.7x ROI, the top leaders using generative AI are realizing significantly higher returns, with an average ROI of $10.3. In addition to the enhanced business value, leaders are also on an accelerated path to build and implement new solutions — 29% of leaders implement AI in less than 3 months versus 6% of companies in the laggard category.
Customer snapshot:
Södra is an international forest industry group that processes forest products from 52,000 owners into renewable, climate-smart products for international market. Every day Södra collects and interprets climate impact data to make thousands of decisions for every part of the value chain.
“With innovative AI technology from Microsoft, our business experts and data scientists have been able to help make us more sustainable while also improving revenue significantly.”
— Cristian Brolin, Chief Digital Officer at Södra
#5 Looking ahead: Skilling remains a top challenge. Thirty percent of respondents indicated a lack of specialized AI skills in-house, and 26 percent say they lack employees with the skills needed to learn and work with AI. This dovetails with findings from the Microsoft and LinkedIn 2024 Work Trend Index Annual Report, which found that 55 percent of business leaders are concerned about having enough skilled talent to fill roles.
That is why over the past year we have helped train and certify over 14 million people in more than 200 countries in digital skills. And we are committed to working in partnership with governments, educational institutions, industry and civil society to help millions more learn to use AI.
Customer snapshot:
The University of South Florida (USF) is partnering with Microsoft to streamline processes and enhance innovation for all aspects of university operations with AI.
“We’re giving students a leg up to do amazing things with AI as part of tomorrow’s workforce. Our focus on generative AI not only drives operational efficiency but also empowers our community to unlock new levels of creativity and impact, further positioning USF as a leader in AI adoption, which includes being among the first universities in the nation to form a college dedicated to AI, cybersecurity and computing.”
— Sidney Fernandes, CIO & VP of Digital Experiences at University of South Florida
AI’s growing economic impact
While companies today are largely implementing out-of-the-box generative AI solutions and seeing significant ROI, more than half of those surveyed expect to build custom industry and line-of-business applications in the next 24 months — demonstrating that today’s ROI is quickly becoming tomorrow’s competitive edge.
“We are at an inflection point of autonomous agent development and are beginning an evolution from using just off-the-shelf assistants and copilots that support knowledge discovery and content generation to custom AI agents to execute complex, multistep workflows across a digital world,” says Ritu Jyoti, GVP/GM, AI and Data Research at IDC. “With responsible technology usage and workplace transformation, IDC predicts that business spending to adopt AI will have a cumulative global economic impact of $19.9 trillion through 2030 and drive 3.5% of global GDP in 2030.”
Key findings from IDC’s The Business Opportunity of AI study include:
- Generative AI usage jumped from 55% in 2023 to 75% in 2024.
- For every $1 a company invests in generative AI, the ROI is $3.7x.
- The top leaders using generative AI are realizing an ROI of $10.3.
- On average, AI deployments are taking less than 8 months and organizations are realizing value within 13 months.
- Within 24 months, most organizations plan to expand beyond pre-built AI solutions to advanced AI workloads that are customized or custom-built.
- The ROI of generative AI is highest in Financial Services, followed by Media & Telco, Mobility, Retail & Consumer Packaged Goods, Energy, Manufacturing, Healthcare and Education.
- 43% say productivity use cases have provided the greatest ROI.
- The primary way that organizations are monetizing AI today is through productivity use cases. In the next 24 months, a greater focus will be placed on functional and industry use cases.
- The top barrier when implementing AI is the lack of both technical and day-to-day AI skills.
Learn how to fuel your AI journey
IDC’s study, which included more than 4,000 business leaders and AI decision-makers around the world, also identifies the top barriers organizations face when implementing AI. As businesses integrate new solutions, they navigate important considerations such as data privacy, responsible use and the need for investment in both technology and skills.
No matter where you are in your cloud and AI transformation journey, Microsoft can help. To learn more about how customers across industries are shaping their AI transformation with Microsoft, please visit Microsoft’s AI in Action page. For more on how to get started in your AI transformation journey, visit Microsoft AI.
IDC InfoBrief: sponsored by Microsoft, 2024 Business Opportunity of AI, IDC# US52699124, November 2024