GenAI Drives Strong ROI Across Industries, Says IDC Report

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Generative AI (GenAI) is increasingly becoming a critical tool for enhancing business value and efficiency across industries. Organizations adopting a strategic approach to integrate GenAI into their operations are experiencing impressive returns on investment (ROI), according to a recent report by the International Data Corporation (IDC), sponsored by Microsoft.

The IDC report, titled “2024 Business Opportunity of AI: Generative AI Delivering New Business Value and Increasing ROI,” highlights the growing importance of GenAI in transforming business processes. It underscores how the technology is driving productivity and growth, with companies witnessing an average ROI of 3.7 times their investment. For top-performing companies leveraging GenAI, the return is even higher, averaging $10.3 per dollar spent.

The report identifies the financial services sector as the top performer, with the highest ROI, followed by media and telecom, mobility, retail, energy, manufacturing, healthcare, and education. Key contributors to this success include innovative AI tools like Microsoft Copilot, which enhance individual productivity, streamline operations, and foster creative workflows.

IDC’s findings show a substantial increase in GenAI adoption, with usage rising from 55% in 2023 to 75% in 2024. This surge reflects growing confidence among business leaders in GenAI’s potential to boost productivity and long-term growth. “Generative AI has moved from the experimental to the essential,” said Zubin Chagpar, Senior Director and Business Group Leader at Microsoft CEMA. He emphasized that GenAI is unlocking significant business value by optimizing decision-making, streamlining operations, and accelerating growth.

According to the report, AI is currently most monetized through productivity use cases, with 92% of users leveraging it for this purpose. Notably, 43% of respondents reported that productivity use cases offered the greatest ROI. However, IDC forecasts a shift towards more functional and industry-specific AI solutions in the next 24 months, as organizations build custom solutions tailored to their unique needs.

Despite the positive outlook, the report also points to challenges such as a lack of specialized AI skills and concerns over data security. Around 30% of respondents cited a skills gap within their workforce, and 26% reported difficulty in training employees to work with AI. Microsoft is addressing these challenges by offering AI training programs and supporting responsible AI development to ensure transparency, security, and compliance.

Looking ahead, IDC predicts that GenAI will continue to reshape business functions across various sectors. Microsoft is committed to helping organizations navigate this transformation, providing cutting-edge AI solutions that meet today’s needs while paving the way for future innovations.

“We are prepared to collaborate with organizations of all sizes and industries to help shape an AI-driven future,” Chagpar added. “Our evolving AI solutions portfolio is designed to enhance efficiency, deepen customer relationships, and enable organizations to reimagine what’s possible.”