As artificial intelligence (AI) evolves from being a technological buzzword to a business imperative, a recent study commissioned by Microsoft to the International Data Corporation (IDC), titled The Business Opportunity of AI, reveals a crucial shift: businesses are no longer asking if they should integrate AI but rather how to do so strategically to gain a competitive edge.
Here are the top 5 AI trends:
- Enhanced productivity has become table stakes
Employee productivity is the No. 1 business outcome that companies are trying to achieve with AI. The study shows that 92% of AI users surveyed are using AI for productivity, and 43% say productivity use cases have provided the greatest ROI. While productivity remains a primary goal, other significant generative AI use cases include customer engagement, growth, cost management, and innovation. Nearly half of surveyed companies anticipate high impact from AI in all these areas within the next two years.
- Companies are gravitating to more advanced AI solutions
The power of generative AI lies in its ability to customize solutions for specific challenges. This ability to tailor AI solutions is driving significant efficiency gains and sparking innovation across the board. Over the next two years, a growing number of companies plan to develop tailored AI solutions, including custom AI solutions, designed to address specific industry needs and business processes. This trend represents a paradigm shift in how we work and how we derive value from AI, moving beyond generic applications to highly specialized tools.
- Generative AI adoption and value is growing across industries
Generative AI is rapidly becoming more popular with adoption rates jumping from 55% in 2023 to 75% in 2024. This increased usage shows that the ROI of generative AI is particularly strong in industries such as Financial Services, Media and Telecommunications, Education, and Manufacturing. It’s clear that generative AI is delivering significant value across industries. Sri Lankan businesses, both large and small, can benefit from recognizing the immense potential of generative AI and exploring its applications to fuel innovation and drive future growth.
- AI leaders are seeing greater returns and accelerated innovation
While companies using generative AI are averaging $3.7x ROI, the top leaders using generative AI are realizing significantly higher returns, with an average ROI of $10.3. In addition to the increased business value, leaders are also on an accelerated track to develop and deploy new solutions. Notably, 29% of leaders implement AI within three months, compared to 6% of companies in the laggard category.
- Looking ahead: Skilling remains a top challenge
The IDC study indicated that 30 percent of respondents lack in-house specialized AI skills, and 26 percent report a shortage of employees with the necessary skills to learn and work with AI. This dovetails with findings from the Microsoft and LinkedIn 2024 Work Trend Index Annual Report, which found that 55 percent of business leaders are concerned about having enough skilled talent to fill roles.
The implications of these findings for Sri Lanka are significant. By integrating AI into critical sectors such as manufacturing, agriculture, and services, Sri Lanka can enhance its economic competitiveness and drive sustainable growth. But realizing this potential requires more than just adopting AI tools—it demands a cultural shift in how businesses view and implement technology. By embracing AI strategically and addressing the barriers to adoption, Sri Lanka can unlock new opportunities, foster innovation, and build a resilient, future-ready economy.
