Businesses report a significant 3.5x return on Artificial Intelligence investments, signaling a new momentum.


Copyright: – “IDC study: Businesses report a massive 3.5x return on AI investments”


A survey of 2,100 global business leaders and decision makers by research firm IDC suggests a new level of momentum around AI investments by businesses, driven by perceived value and excitement around generative AI.

The report, which was commissioned by Microsoft, but independently conducted by IDC, found that respondents report an average 3.5x return on their AI investments. In other words, they say they are reaping $3.5 in returned value for every $1 invested.

Put yet another way, that’s a whopping 250% return. And that’s significant, when compared to other reports conducted on monetization of AI. IBM reported an average ROI of only 5.9%, based on a May survey of 2,500 global executives. That return is below the typical 10% cost of capital, and so from that perspective, AI could be deemed a risky investment choice. Other reports have shown even lower average returns, or have discussed how difficult it is to estimate ROI and that companies often make big mistakes when calculating ROI.

One of the first reports on AI monetization since generative AI’s watershed moment last year

The IDC report was conducted in September, and so is one of the first reports to look at monetization since the hype started around generative AI late last year. Among other highlights, the report found that 71% of respondents say their companies are already using AI, with 22% planning to do so within the next 12 months. It found that 92% of AI deployments are taking 12 months or less, which is faster than the deployment rates seen for previous technologies.

However, It was the first time IDC has explicitly sought to have respondents quantify their returns on investments, according to Ritu Jyoti, GVP AI and Automation for IDC, who leads the firm’s AI research efforts, in an interview with VentureBeat.[…]

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