Companies are realising a rapid return on AI investments

Clearly, for companies to invest in artificial intelligence, it must make good business sense.

And, as AI becomes more and more integrated across society, organisations are beginning to understand the extent of what’s possible and the significant economic impact it can have. 

This is highlighted by a new Microsoft-sponsored study conducted by the International Data Corporation (IDC), which sees C-suite leaders from across the world reveal how their organisations are using and monetising their AI investments. 

The research reveals organisations are realising a return on their AI investments within just 14 months and, for every US$1 being invested, an average return of US$3.5 is being realised. 

“IDC is projecting that generative AI will add nearly US$10 trillion to global GDP over the next 10 years,” comments Ritu Jyoti, Group VP for AI and Automation at IDC. 

“Calculating the value of new investments in GenAI requires building the business case by simulating potential cost and responsible value realisation.”

Skills gap holding back AI innovation

To help companies understand the opportunities AI has the potential to unlock, IDC surveyed more than 2,000 business leaders and decision makers from around the world, all of whom are responsible for bringing AI transformation to life within their organisations. 

The study, which builds on the results from Microsoft’s Work Trend Index, focuses on workplace productivity and examines how companies are monetising their AI investments, from generating new revenue streams to delivering differentiated customer experiences and modernising internal processes.

Interestingly, almost three-quarters (71%) of respondents say their companies are already using AI, while 22% plan to do so within the next year. 

The vast majority (92%) of deployments are taking 12 months or less and two in five (40%) are taking less than six months. 

However, even with this momentum and positive outlook for what AI can help them achieve, organisations are facing plenty of challenges when it comes to implementation.

A shortage of skilled employees is holding companies back from accelerating their AI-based innovations, with more than half (52%) citing a lack of skilled workers needed to implement and scale AI initiatives across business functions as the main obstacle to overcome. 

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