A survey of 2,100 global business leaders and decision makers, independently conducted by IDC and commissioned by Microsoft, shows that businesses are achieving significant returns on their AI investments, particularly fueled by generative AI. This report provides insights into AI monetization and deployment trends, revealing that organizations are experiencing a substantial 250% return on their AI investments.
According to the survey, business leaders report an average 3.5x return on their AI investments, equating to a 250% return. This remarkable ROI signifies the growing value and excitement around AI, especially generative AI.
The study's findings contrast with previous reports, such as IBM's, which reported a considerably lower average ROI of 5.9%. While IBM's report indicated AI as a potentially risky investment choice, this new study highlights the potential for high returns, with organizations reaping $3.5 for every $1 invested in AI.
The report emphasizes that generative AI is playing a pivotal role in this trend. Traditional AI was often perceived as a domain for highly technical workers within IT or lower levels of business units. However, generative AI has brought AI to the forefront and generated increased excitement among C-suite executives and boards.
The report reveals that the enthusiasm around AI is leading companies to deprioritize other initiatives to allocate more resources to AI. This shift is significant, with 32% of organizations reducing spending on specific business areas, redirecting these resources to invest in AI. The areas facing reduction typically involve administrative support and services.
AI projects are being rapidly deployed, with 92% of AI implementations taking 12 months or less. This speed exceeds previous deployment rates for other technologies, indicating a heightened focus on AI integration.
While organizations are eager to embrace AI, they face a challenge in the form of a lack of skilled workers needed to scale AI initiatives. This barrier highlights the importance of investing in AI talent to drive successful AI projects.
Generative AI is perceived as a catalyst for innovation, enabling organizations to expedite time-to-market and time-to-value. It has simplified access to AI for a broader audience, leading to advancements in various industries, including healthcare, software development, and retail.
The survey findings underscore the increasing importance of AI investments for businesses, driven by generative AI. It signifies the potential for significant returns on AI investments and the need for organizations to prioritize AI initiatives while addressing the shortage of AI talent.
AI investments are gaining momentum, and organizations can realize substantial returns by embracing generative AI and prioritizing AI initiatives.