AI adoption boosts ROI by $3.7 for every dollar spent, finds IDC

The study, commissioned by Microsoft, shows that 92 per cent of organisations are using the technology to increase productivity, topline growth and more

Laura Hyde | 13 November 2024

Organisations are investing in generative artificial intelligence technology to improve five key business areas, according to an IDC study commissioned by Microsoft.

The study, titled The Business Opportunity of AI, discovered that 92 per cent of AI users surveyed are using the technology to improve productivity, followed by customer engagement, topline growth, cost management and product or service innovation. This aligns with what Microsoft and its partners are experiencing; when organisations commit to and invest in AI, the return on investment (ROI) potential grows significantly.

IDC’s report found that generative AI adoption is rapidly expanding with usage figures jumping from 55 per cent in 2023 to 75 per cent in 2024. On average, AI deployments are taking less than eight months to complete, with businesses realising its value within 13 months. The study shows more companies are expected to build customised AI solutions in the next two years.

Companies using generative AI are reporting an average ROI of $3.7 for every dollar spent, according to the IDC study, with some seeing as much as $10.3 times ROI. Organisations in the financial services, media and telecommunications sectors are achieving the highest ROI on generative AI.

However, skilling workers in AI technologies remains the top challenge for businesses, with 30 per cent reporting a lack of specialised AI skills in-house. In order to help fill the skills gap, Microsoft has helped train and certify over 14 million people in more than 200 countries in digital skills over the last 12 months.

“We are committed to working in partnership with governments, educational institutions, industry and civil society to help millions more learn to use AI,” said Alysa Taylor, chief marketing officer for commercial cloud and AI at Microsoft, in a blog post on the Microsoft website.

Taylor also highlights examples of how the technology is helping key Microsoft customers, saying: “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.”