Generative AI (GenAI) is becoming an essential driver of business value and operational efficiency across various sectors, with organisations that strategically integrate this technology into their operations reaping substantial returns on investment (ROI), according to a report by the International Data Corporation (IDC). The report, sponsored by Microsoft and titled 2024 Business Opportunity of AI: Generative AI Delivering New Business Value and Increasing ROI, underscores the transformative role of GenAI in reshaping business operations and delivering measurable value. It also highlights the accelerating pace of adoption, positioning the technology as a key enabler of productivity and growth.
IDC’s findings reveal that GenAI is delivering impressive returns, with businesses reporting an average of 3.7 times the investment per dollar spent. For leading organisations that have embraced Generative AI, the returns are even more substantial, with an average ROI of $10.3. The highest ROI from GenAI is seen in the Financial Services sector, followed by Media and Telecommunications, Mobility, Retail and Consumer Packaged Goods, Energy, Manufacturing, Healthcare, and Education. Key to this ROI are new AI tools such as Microsoft Copilot, which enhance individual productivity and team collaboration by automating routine tasks and enabling more creative workflows. These tools allow employees to focus on higher-value activities, leading to a more efficient and productive workforce.
The report also highlights a significant rise in GenAI adoption, with usage increasing from 55% in 2023 to 75% in 2024, illustrating the growing confidence business leaders have in the technology’s potential to achieve top-tier business outcomes. These include improvements in employee productivity, long-term economic growth, and enhanced decision-making capabilities. Zubin Chagpar, Senior Director and Business Group Leader for Modern Work & Surface Devices at Microsoft CEMA, commented that Generative AI has moved “from the experimental to the essential,” as organisations unlock significant business value by integrating AI solutions that streamline operations, optimise decision-making, and drive growth.
Currently, AI is primarily being monetised through productivity-related use cases, with 92% of surveyed AI users applying AI for productivity purposes, and 43% citing productivity use cases as the greatest source of ROI. However, the focus is expected to shift in the next two years towards more functional and industry-specific applications. Over the next 24 months, IDC anticipates that more companies will develop custom AI solutions tailored to meet specific industry needs and business processes, including AI copilots and agents. This indicates a maturation of AI capabilities as organisations evolve from using generic, out-of-the-box applications to more advanced and bespoke solutions that cater to their unique challenges.
Despite the significant potential of GenAI, the report also highlights several challenges that remain, particularly in the areas of skills gaps and data security. Approximately 30% of respondents reported a shortage of in-house AI expertise, while 26% cited a lack of employees with the necessary skills to learn and work with AI. To address these challenges, Microsoft is providing targeted AI training programs and actively participating in discussions around the responsible development and deployment of AI. This focus on skills development and governance is crucial in helping organisations navigate the complexities of AI while ensuring that their use of the technology remains secure, transparent, and compliant with ethical standards.
Looking to the future, IDC predicts that Generative AI will continue to reshape business functions across a broad range of industries. The applications of AI will extend beyond IT and customer service to include areas such as product development, marketing, and operational management. Microsoft is committed to supporting organisations through this ongoing transformation, providing cutting-edge AI solutions that not only address current needs but also lay the foundation for future innovations.
Chagpar concluded by stating that Microsoft is prepared to collaborate with organisations of all sizes and industries to help shape a future driven by AI-powered impact. The company continues to evolve its AI solutions portfolio to enhance efficiency, deepen customer relationships, and help organisations reimagine the possibilities of a world increasingly defined by AI.