So, let’s talk about ROI on AI.
The Information is reporting that Microsoft’s AI assistant, 365 Copilot, has faced challenges in adoption due to performance issues and high costs, with only 0.1% to 1% of Microsoft 365 users currently paying for it. While some businesses report mixed results, there is optimism for future improvements. Budget constraints and competition from free alternatives also hinder broader adoption.
And speaking of it, Microsoft is expanding its Copilot+ AI features to include PCs powered by the latest AMD and Intel chips, enhancing performance, battery life, security, and connectivity. New AI experiences will be available starting in November, including Windows Studio Effects and AI-image editing tools. The controversial Recall AI feature allows users to search for previously seen content, is set for a preview in October, pending regulatory scrutiny due to privacy concerns.
And compare to Tanay J’s newsletter, which focused on specific case studies. Generative AI is delivering tangible ROI across various sectors, including customer support, software engineering, customer experience, sales, and operational processes. Companies like Klarna and Salesforce report significant improvements in efficiency and customer satisfaction, while Amazon’s AI assistant has saved thousands of developer years. eBay and Taco Bell are enhancing customer experiences through AI-driven solutions, and firms like Rocket Mortgage and Walmart are automating processes and improving data accuracy. Overall, while many AI initiatives are still experimental, clear value is emerging as companies refine their applications of the technology.
Research from Slack’s Workforce Lab reveals that one in three workers use AI multiple times a week, with a 23% increase in usage since January 2024. While 81% of AI users report increased productivity, there are distinct personas among workers: Maximalists (30%) actively advocate for AI, Underground (20%) use it discreetly, Rebels (19%) reject it, Superfans (16%) admire it but don’t use it much, and Observers (16%) are indifferent. The study highlights the importance of AI training, as trained employees are significantly more likely to trust and benefit from AI tools, emphasizing the need for companies to invest in AI training to avoid leaving behind less engaged workers.
Salesforce is launching an AI Use Case Library with over 100 capabilities tailored for 15 industries, including healthcare and automotive, for general availability between October 2024 and February 2025. The focus is on customized AI solutions to address sector-specific challenges, as generic tools may not suffice. Salesforce’s offerings will include features like generative AI-powered complaint summaries and inventory checks, with pricing varying by implementation.
What’s fascinating here is that the specific areas that are seeing success are those with a higher focus. Focused personas, with focused outcomes, where an industry, a need, and an improvement are identified. Broad “we can help with AI”, like CoPilot, is showing slower success if any.
AI projects with defined use cases—such as Salesforce’s sector-specific solutions or Amazon’s developer efficiency gains—are delivering real value. These initiatives focus on concrete business outcomes (like streamlining customer service or automating processes), which allows companies to measure ROI more directly. For IT service providers, this is a critical insight: AI solutions must be tailored to specific business needs rather than offering broad, generic capabilities. Clients will see greater ROI when AI is applied to clear, focused problems.