Generative AI (GenAI) is playing an increasingly important role in driving business value and efficiency across various sectors and organisations that have implemented a strategic approach to integrating the technology across their operations are enjoying significant return on investment (ROI), a report by the International Data Corporation (IDC) has found.
The IDC report, sponsored by Microsoft and titled, ‘2024 Business Opportunity of AI: Generative AI Delivering New Business Value and Increasing ROI’ underscores the strategic importance of GenAI in reshaping business operations and delivering measurable value. It also reveals significant insights into the accelerating adoption of the technology, highlighting its potential to drive productivity and growth.
According to IDC’s findings, GenAI is delivering substantial returns, estimated at 3.7 times the investment per dollar spent. For top leaders that are using Generative AI, the returns are significantly higher with an average ROI of $10.3. The ROI of GenAI is highest in the Financial Services sector, followed by Media & Telco, Mobility, Retail & Consumer Packaged Goods, Energy, Manufacturing, Healthcare and Education. Key contributors to this ROI include innovative new AI tools such as Microsoft Copilot, which enhance individual productivity and team collaboration by automating routine tasks and enabling creative workflows.
The report also revealed a substantial increase in the adoption of GenAI, with usage rising from 55 per cent in 2023 to 75 per cent in 2024, showcasing the confidence that business leaders have placed in the potential of the technology to help them achieve top business outcomes, including enhanced employee productivity and long-term economic growth.
“Generative AI has moved from the experimental to the essential,” said Zubin Chagpar, Senior Director and Business Group Leader for Modern Work & Surface Devices at Microsoft CEMA. “Our customers are unlocking significant business value by integrating innovative AI solutions that not only streamline operations but also optimise decision-making and accelerate growth. The IDC report highlights the immense potential of GenAI to drive ROI and create competitive advantage, underscoring the importance of investing in this transformative technology. At Microsoft, we are committed to supporting organisations across all sectors on this journey – from providing the foundational infrastructure to ensuring responsible governance.”
The report also showed that, currently, AI is primarily monetised through productivity use cases – 92 per cent of AI users surveyed are using AI for productivity, and 43 per cent say productivity use cases have provided the greatest ROI. However, the focus is expected to shift towards functional and industry-specific use cases over the next 24 months. Within that time frame, more companies are expected 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 realise the value of out-of-the-box use cases and expand to more advanced scenarios.
While the potential of GenAI is vast, the report also points to several long-standing challenges, particularly around skills gaps and data security. Around 30 per cent of respondents indicated a lack of specialised AI skills in-house, and 26 per cent say they lack employees with the skills needed to learn and work with AI. Microsoft is addressing these barriers by offering targeted AI training programmes and contributing to discussions around Responsible AI development and deployment to ensure security, transparency, and compliance. This approach gives organisations the confidence to innovate within resilient and ethical frameworks.
Looking to the future, IDC anticipates that Generative AI will continue to reshape business functions, with applications expanding from IT and customer service to product development and beyond. Meanwhile, Microsoft remains dedicated to empowering organisations with cutting-edge AI solutions that not only meet today’s demands but also lay the groundwork for tomorrow’s innovations.
“We are prepared to collaborate with organisations of all sizes and across every sector to help shape a future defined by AI-driven impact,” said Chagpar. “We are constantly evolving our AI solutions portfolio to enhance efficiency, deepen customer relationships, and help organisations reimagine what’s possible.”
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