Study Finds 370% ROI for Enterprise Generative AI
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Today, on the A I daily brief, a new study finds the re of A I at three hundred and seventy percent before that in the headlines, what microsoft announced at yesterday's at night and what that means for the industry. The A I daily brief is a daily podcast in video about the most important news and discussions in A I to join the conversation, follow the discord thing in our show notes.

Welcome back to the AI daily brief headlines edition. All the daily AI news you need in around five minutes yesterday was microsoft ig night. And as you would expect, a huge amount of the emphasis was on artificial intelligence company announce like eighty new product.

So we're going to try to quickly go through and understand what the biggest part of the announcements were. Overall, microsoft announced a rebranded and redesign of their azure A I studio. We naming the platform A I foundry. The platform serves as a central hub for building geni apps as well as managing deployment ts in an enterprise environment.

Just hawk microsoft of V P for data, A, I and digit applications, said business leaders are looking to reduce the time and cost of bringing their A I solutions to market while continuing to monitor, measure and evaluate the performance in r, which is why we're excited to unveil asia I foundry today as a unified application platform for your entire organization in the age of ai. As A I foundry helps bridge the gap between cutting H I technologies and practical business applications, empowering organizations to harness the full potential of A I efficiently and effectively. New on the platform is tooling to help customers deploy and manage I apps and agents, with microsoft saying the new management center will help teams manage and optimize A I upset scale, including resource utilization across multiple hubs and b scription.

Access religion connected resources. Now you might have noticed recently that sales forces mark binning off has been absolutely ragging on microsoft as basically misleading the world with their assistant version of ai. Sales forces been pushing agents quite heavily and effectively says that agents are the U.

S. That A I has always wanted and that the copilot error was just a big distraction. Well, in this new A I foundry, agents were, of course, front center with an integrated A I agent service platform in the sweat ong.

With the ability to customize agenticity workflows, the platform also supports bring your own storage and private networking features. Gear towards protecting corporate data, hawk said, in the market, flooded with disparate technologies and choices, we created asia A I foundry to thoughtfully address diverse needs to cross an organization and the pursuit of A I transformation. It's not just about providing advances tools that we have, those two, it's about Fostering collaboration and alignment between technical teams and business strategy.

The future that catching a lot of attention is the ability to easily test and switch between different models. A I currently supports a one hundred different AI models, all the different capabilities in cost profiles. That is nothing, if not a nightmare, to manage to microsoft, to make IT much easier to find the best model for the job, at least that the promise cloud computing chip, scot gotti said.

What developers are often finding is that each new model, even if if is in the same family of models, has benefits in terms of Better answers or Better performance on many things. But you might have aggressions on other things. If you are a business that has got a mission critical application, you don't just want to flip a switch and hope that works.

Got noted that this emphasis on customer choice could harm the company's partnership with OpenAI, but commented for a huge number of use cases, the OpenAI models are absolutely the best today in the industry. At the same time, there are different use cases, and sometimes people do have different reasons for wanting to use different things. Choice is also going to be important.

So taking a step back, what was interesting about the signal announcement? Sure, part of IT is that agents are all over the place, as you would expect. But really, I think that this is a good signal of the place that we are in when IT comes to A I adoption.

Rather than just every big event being about the latest model or pushing the boundaries of the state of the art, we're increasingly seeing this ability, ux, practical integration, basically all the stuff that IT takes for enterprises and customer to actually use these tools become the major focus is no longer just about who has the most technical magic. It's about who makes IT the easiest to use that for whatever IT is that i'm trying to do that thing is where the big competition is going to be in the immediate future. Now one of microsoft big competitors is, of course, meet up.

And that company announced a new division specifically for building A I tools for business. The announcement of the group also comes with the announcement of a heavy hitting leader, clara ship. Up until about last week, he was the CEO of sales force.

Ai SHE was elevated to lead A I efforts at sales force in may twenty twenty three, but wrote on x, i'm thrill to share today that i've joined meta to lead a new business, A I group, our vision for this new product groups to make cutting H A I accessible to every business, empowering all to find succession on their future in the A I era. Of course, this announcement posts also shows some of the advantages that matter. Hands two hundred million businesses he writes each month, turned to facebook, instagram and WhatsApp to connect with billions of customers around the world.

Meta lama models have over six hundred million downes to date, and meta I now has more than five hundred million monthly actives. Not to mention the incredible ways will bring these A I advancements into the physical world through A R glasses and V R headsets. Meta global reach and leadership and A I represent a generation opportunity for businesses, and I could not be more excited and grateful.

Help take this from zero to one to scale. And this notion that meta has seen massive business adoption of their A I tools is pretty true, and it's, of course, being driven by the fact that they're being baked into the company's advertising platform. During last month earning call, C E O mark ab boosted businesses using media mage generation tools were already seeing a seven percent increasing.

The company also recently added customized able AI chat bots to aid with customer service. With a new division dedicated to the market segment, meta is making a big bet that making user friendly A I tools for businesses is the way forward. Met as VP and head of monodist ation, john hagen said, we believe these latest advancements in A I represent a significant opportunity for businesses to drive more efficiencies and significantly improve the experiences they offer her to their customers.

Last news, once again from another one of these competitors, and this one is just a little one, but google german, I can remember you now. The is flag group chat pot has a new memory feature similar to chat B S memory. Gma will now recall details about the user, including food preferences and interests.

The chatbot will then use this context to Taylor responses, like only recommending restaurant on serving your favorite foods or responding to coding questions in the correct language. The feature is being rolled out to german. I advanced scribers at the moment.

And interestingly, google is making this feature transparent and customizable. Users can view at IT or delete any of the retained memory german. I will also note when IT uses its memory as context for an answer, google claims to storm memories won't be shared to used to train future models.

And that ability, the customized memory, might be really appealing to some people. For example, professor is in molex tweeted yesterday, odd, why does my ChatGPT advances voice mode, keep slipping into an english accent? Oh, because I told her to try accent once.

And IT recorded that in memory. I bet fifty nine percent of weird GPT experiences are people not realizing how memory works. The other forty one percent is ChatGPT is just weird and with friends. That is going to do for today's a brief headlined edition, necked up the main episode. Today's episode is brought to you by vantage, whether you're starting or scaling your company security program, demonstrating top notch security practices and establishing trust is more important than ever.

Penta automates compliance for I S O twenty seven O O one soc two gdpr and leading A I frameworks like I S O forty two thousand one and N I S T A I risk management framework, saving you time and money while helping you build customer trust, plus you can streaming line security reviews by automating questionnaire and demonstrating your security posture with a customer facing trust center. All power by vent to A I over eight thousand global companies like lung chain lead A I in factory A I use vane to demonstrate A I trust, improve security in real time. Learn more adventure dot com slash N L W that's ventadour com slash N L W.

Today's episode is brought to you, as always, by super intelligent. Have you ever wanted an A I daily brief, but totally focused on how A I relates to your company? Is your company struggling with A A I adoption either because you're getting installed, figuring out what use cases will drive value or because the A I transformation that is happening isolated individual teams, departments and employees and not able to change the company as a whole? Super intelligence has developed a new customer internal podcast product that inspires your teams by sharing the best A I use cases from inside and outside your company.

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One of the biggest questions when IT comes to enterprise A I and specifically generate A I, of course, is what the area is truly going to be now where a period where there is a broad assumption that this technology is so powerful that are is basically inevitable and that, Frankly, if you're not capturing IT is probably your foot, not the A S fault. Whether that period last forever remains to be seen. But it's created the context for a lot of pilots.

However, inevitably, as organizations get deeper and deeper into their genii journey, they are starting to try to figure out how to quantify the benefit that is happening. For example, many organizations are painfully aware that pretty much all of the benefit of A I is occurring to the individual employee who's getting those productivity gains because the org ization doesn't really have any way of tracking the benefit that employees are getting. So it's entirely contingent upon that employee about whether they deploy their safe time to more work pursuits or whether it's just entirely for them.

Point being that I think that enterprises are getting a lot more keen to try to figure out how AI is actually benefiting them in specific numerical terms. And that's why a new study from idc you really jumped out at me. Now one thing that's important to note, just for the sake of coffee adding and grains of salt, is that this study was commissioned by microsoft.

So obviously, that is not an bias party. Still, in terms of how the study was conducted, it's not like this was pulled out of thin air. Idc surveyed over four thousand people that they call business leaders and decision makers who are responsible for, quote, bringing a aye transformation to life within supplementary.

They interviewed eight large enterprises about their AI strategies and use of A I within their businesses. Let's talk about some of the key findings and then dig in on deeper level. First of all, and perhaps most expectations generated A I saw a huge jump in usage between twenty twenty three and twenty twenty four.

IT was fifty five percent and twenty twenty three, jumping all the way to seventy five percent this year. Also in the realm of the unsurprising so far, a lot of the emphasis for businesses has been on productivity, the way the I D. C frames, that is, they say that the primary way in which organza are monodist ing AI today through productivity use cases and on a world wide level, the top two business outcomes, or organizations are trying to achieve using our employee productivity in top eline growth.

This makes sense. Thinking about employees saving time, doing the things that are we doing is a very natural place to start the A I. journey.

What's interesting, those that there does seem to be a shift, the fact that the gania's are starting to think about top line growth. And also the idc says in the next twenty four months, a greater focus will be placed on functional and industry use cases. Maybe the most eyes popping finding for every one dollar a company invest in geni.

The R Y is three point seven x across industries. What's more, organizations considered leaders in A I are seeing their investments pay off at a significantly higher rate than the average top leaders using generate A I or realizing at ten point three x return on their investment. Finally, these organizations say the top chAllenge is a lack of employees with necessary skills and capabilities to utilize ai.

Have a lot of thoughts on that, that I will come back to in a minute, but let's try to diggin on this R Y. Question, because that seems to be the one that is really notable. Now what's chAllenging about this is that this comes from a survey question.

What would you estimate your organizations are? Is for everyone dollars spent on generate A I projects or initiatives? In other words, this is self reported. It's estimated.

And there's no guarantee that how one A I officer thinks about how they determine R Y is anything at all like how another A I officer thinks about r this doesn't mean that it's not an interesting data point, even if they're off. In other words, the fact that these folks are estimating their R, Y three hundred and seventy percent is in in of itself telling. And this maybe moves us back to how people are using this today. IT seems likely that the most common measures is going to be around time saved idc rights, that productivity use cases are delivering the greatest R I.

Today, when asked which A I use cases has provided the greatest R I for your organization, forty three percent at productivity use cases, in other words, individual employee productivity and efficiencies such as reducing time, analyzing or completing tasks for us, to thirty one percent saying functional use cases, use cases specific to individual lands of business or business functions, and twenty six percent saying that its industry use cases such as improved retail ordering or streamline manufacturing in terms of where in the organization enterprisers are using A I IT arranges from the top line of ninety percent using IT for marketing in P R. Makes sense. There's a lot of words and images there, and those are the two most used categories of gene right now down on the way to the product development, which is still at fifty six percent, again, caaba.

Given that these were people who were managing A I transformation inside their organizations, this is already a subset of businesses that are probably more A I savy than the average. All over this survey is the sense that were transitioning from productivity alone to revenue generation, from just saving time to improving outcomes. Thirty eight percent of organizations said that they had a planned to monetize functional use cases within the next twenty four months, and thirty seven percent said they had a plan to monetize industry use cases that shipped over than to what is holding adoption back in the round of the expected.

Once again, security, privacy and complaints remain major considerations, but by far, organizations identify their top chAllenge as a lack of employees with the necessary skills. And the numbers didn't come down hugely between twenty twenty three and twenty twenty four and twenty twenty three, fifty two percent of organizations that their top chAllenge was a lack of skilled workers versus forty five percent of respondents saying that now the next highest chAllenge category was cost in concerns about data or I P loss, which were down all the way at twenty seven percent. I wanted to soap box for just a minute here because obviously, skills and capabilities is where super intelligence started its journey.

IT has been very clear for some time that there is a big what we call enable ment gap, the space between what an enterprise or organization beliefs they can get out of a and what they're actually getting out of a eye right now. IT made sense to us to start the journey of trying to solve for the enable ment gap by trying to improve skills or capabilities. That's where the tutorial version of the supreme intelligence platform first came from.

What we found was not that, that wasn't a concern, but that when you really pushed on IT, the chAllenge for employees wasn't just that they didn't know how to use A I tools IT was more that they didn't know what to use them for frame differently. You can know all the prompting techniques in the world, but if you don't have any sense of which workflows and business processes could be updated and improved with those prompting techniques, it's not going to move in middle. Most organizations lack a system for tracking broadly and publicly how employees are experimenting with getting value out of A I right now.

What that means is that every experiment that an employ does, every pilot that a team undergoes, really only stands to benefit the experimenter or the pilot participant. There's no way to translate the experience, the learnings, the new best practices, the new techniques that come out of those experiments and pilots. This means that adoption happens in fits and starts.

Every person across the orange zone is forced to be a use case creator, rather than just copying off the homework of the early adopters and power users who figure IT out the fastest. That's why super intelligence shifted so much emphasis to use case sharing and helping organizations broadcast what their teams and individuals are learning about how to use A I to get value to everyone else in the org. The point being ultimately is that org ization aren't wrong when they're identifying that their employees ability to utilize A I is a big blocker.

It's just that we don't believe that the solution is going to be a bunch of courses in traditional learning and development. It's going to be much more about systems for amplifying and speeding up the process by which business process improvements and new A I enable workplace to views across the organization. Now summer up this study, it's clue to paint a snapshot of an enterprise y AI adoption period that is in transition.

Geni has fully inflated at this point, the enterprise, if your company is not using gene I based on these numbers, you are now significantly in the minority. More than that, for many organza, they are already past their first second phases of experiments. They're starting to be able to measure the R A Y productivity gains.

They're thinking about how they can use A I to create new opportunities for themselves to generate more revenue. This is exciting because, as i've always said, one of my fears with A I is that companies will view IT exclusively as an efficiency technology, a way to do the same with less. I think the companies that win ultimately will be those who view him as an opportunity technology, a way to do more with the same or way, way more with just a little more.

I think when organizations reframed their goals as capturing totally new and previously unavailable opportunity, that's where we avoid big negative externalities of entire categories of jobs wiped off the face of the planet. And instead, we think about how we supercharge all of our people to use A I to create and capture opportunities that simply were not possible before. I think there are some telling and promising statistics in here that suggests that, that's the way that companies are starting to think about this. And that is a trend I can certainly get behind. But although that is going to do for today's day, ideally, bref, appreciate you listen or watching as always until next time peace.