An IDC study commissioned by Microsoft, but independently conducted by IDC, has unveiled an extremely positive nod towards investing in AI. The survey, conducted among 2,100 global business leaders and decision makers, backs a surge in momentum for AI investments, fueled by the perceived value and enthusiasm for generative AI. What sets this study apart is that it reveals an astounding average return of 3.5 times the AI investment, equating to a remarkable 250% return.
Notably, this IDC report is one of the first to look into AI monetisation since the rise and popularity of generative AI (think chat GPT), a technology that has gained prominence in the last year (if you don’t use it yet, have a go chat.openai.com). The report showcases swift adoption of AI, with 71% of respondents already utilizing it, and 22% planning to do so in the next 12 months. Interestingly, 92% of AI deployments are taking 12 months or less, signifying a faster pace compared to previous technology implementations.
In this context, it's essential to recognize that organizations are showing a strong proclivity for prioritizing AI over other initiatives. Some are even redirecting funds and reducing spending elsewhere to make room for more AI investment. The increased enthusiasm around generative AI has permeated the C-suite and boardrooms, with a notable global appetite for AI investment.
This is a significant milestone, especially when compared to previous AI monetisation reports. For instance, IBM reported an average ROI of merely 5.9%, well below the typical 10% cost of capital, potentially categorising AI as a risky investment. Other reports have depicted even lower average returns, highlighting the complexities of estimating ROI accurately.
However, while the numbers appear promising, it is always worthwhile moving forward with caution. The survey relies on self-reported data from respondents, which means the accuracy of these ROI estimates must be tracked over time. It's possible that respondents' enthusiastic attitudes toward AI during this era of hype may be skewing the figures.
That all being said, for every $1 spent, a return of $3.5 is significant. The IDC study underscores the remarkable potential of AI investments highlighting the growing role of AI in transforming businesses.
While AI is hot talk right now, and optimism is palpable, it is important that organizations exercise care and diligence when investing in AI initiatives.
The age of AI has arrived, and those who navigate it thoughtfully will reap substantial rewards.
https://venturebeat.com/ai/idc-study-businesses-report-a-massive-3-5x-return-on-ai-investments/
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