GenAI Adoption Soars in 2024, Driving ROI Across Industries, IDC Report Finds

• By John K. Waters
• 11/19/2024

The adoption of generative AI has surged globally, with usage jumping from 55% in 2023 to 75% in 2024, according to IDC’s latest study, "The Business Opportunity of AI," commissioned by Microsoft. The report highlights a tipping point in AI adoption as organizations unlock significant business value across industries.

The findings reflect the transformative impact of AI, particularly GenAI, which has emerged as a key driver of productivity, cost savings, and innovation. IDC projects AI will contribute $19.9 trillion to the global economy by 2030, making it a pivotal technology in shaping future business strategies.

Key trends in AI adoption noted in this report include:

• Productivity Leads the Charge: Enhanced productivity remains the top business outcome for AI users, with 92% of respondents leveraging AI to boost efficiency. For example, marketing agency Dentsu has integrated Microsoft Copilot to streamline daily tasks, saving employees up to 30 minutes per day.
• Custom AI Solutions on the Rise: Companies are moving beyond off-the-shelf AI tools, opting for customized solutions tailored to their specific needs. Siemens, for instance, has developed an industrial Copilot to address labor shortages and streamline automation processes.
• Rapid Generative AI Adoption: GenAI has shown the highest ROI in financial services, followed by media, retail, and healthcare. Hospitals like Chi Mei Medical Center have seen significant time savings, with doctors reducing medical report writing from one hour to 15 minutes.
• AI Leaders Outpace Peers: Top-performing companies are achieving ROI of $10.3 for every dollar invested, far surpassing the $3.7 ROI average. These organizations are also accelerating AI implementation, completing deployments in less than three months.
• Skilling and Workforce Transformation: Despite the promising outcomes, a lack of AI expertise remains a challenge. Thirty percent of organizations cited skill gaps as a barrier. To address this, initiatives like Microsoft’s training programs have equipped over 14 million people globally with AI competencies.

The report noted three "transformative industry Impacts," including:

• Healthcare: AI-powered tools are improving patient care and reducing cognitive burdens on physicians. For example, DAX Copilot has cut the average time per patient visit by over five minutes.
• Retail: Coles, an Australian grocery chain, uses AI models to generate 1.6 billion daily predictions, ensuring better inventory management across its 850 stores.
• Forestry: Södra, a Swedish forest industry group, leverages AI to optimize sustainability and profitability through advanced data analytics.

The authors of the IDC report expect businesses to shift increasingly toward custom AI applications to maintain a competitive edge. Over the next two years, a majority plan to move beyond pre-built solutions to deploy advanced, bespoke AI workloads.

"Generative AI is redefining business landscapes, from customer engagement to cost management," said Ritu Jyoti, IDC’s GVP/GM for AI and Data Research, in a statement. "Organizations that invest in AI today are positioning themselves for unprecedented growth tomorrow."

With AI deployment timelines averaging eight months and ROI materializing within a year, the authors say, the technology’s potential to reshape industries has never been clearer. Yet challenges such as workforce skilling and ethical implementation remain critical areas for focus as businesses continue their AI transformation journeys.