C-suite leaders understand that there’s definitely a business case for AI. But a big looming question for many leaders is: What’s the return on investment? 

I sat down with Alysa Taylor, corporate VP for Azure and Industry at Microsoft to talk about this topic and new research.

“We hear the potential from our customers every day on AI,” Taylor explains, “and what we understand is that organizations are just starting to scratch the surface on what’s possible.”

There’s still the notion of demystifying the business value, she says. “People are starting to understand the tech and the use cases, but how do you then monetize the value of AI?” Taylor says.

To answer these types of questions, Microsoft commissioned a global study through IDC that surveyed over 2,000 business leaders across the C-suite who are responsible for bringing AI transformation to life at their organizations. 

The study shows that AI has real tangible benefits, Taylor says. According to IDC’s research, for every $1 companies invest in AI, they are realizing an average of $3.5 in return, and 5% of organizations worldwide are realizing an average of $8 in return. Taylor refers to these organizations as “leading adopters.” 

The study was about AI in its entirety, she says. “But we’re seeing generative AI really be a catalyst for this return on investment,” she adds.

Seventy-one percent of the respondents say their companies are already using AI. And of those respondents, 92% say AI deployments are taking 12 months or less. “What used to take years is now happening in less than a year,” Taylor says. 

AI use cases

What have been some of the use cases for AI? It’s accelerating the marketing department with the ability to generate copy, Taylor says, and running simulations on a factory floor. The technology is also being used to automate whatever has been a heavy burden on operating expenses, business processes, and workflows, she says. 

Taylor offered an AI case study in health care. Microsoft-owned Nuance has an automated clinical documentation tool called DAX Copilot, which is integrated with the latest generative AI capabilities. Atrium Health has deployed DAX Copilot to its primary care physicians and the AI generates a clinical summary automatically and securely “in seconds,” according to Microsoft. The physician doesn’t have to actively enter notes during the appointment. 

Physicians at Atrium Health are already reporting saving up to 40 minutes per day with this advanced documentation, according to Taylor. Eighty-four percent have reported improved documentation experience and 68% have recognized an improved experience providing care.

CFOs should identify those areas of the business that are a burden on the top line, and then apply AI technologies to that, she says. For example, “anomalies on a factory floor have a real cost to an organization,” Taylor says. 

Sheryl Estrada
sheryl.estrada@fortune.com

Leaderboard

Judy Krandel was named CFO at Nephros, Inc. (Nasdaq: NEPH), a water technology company. Krandel brings more than 20 years of experience. Before joining Nephros, she served as the CFO of Recruiter.com. She also served in previous roles as CFO for two other publicly traded companies.

Ken Brause was named CFO at DailyPay, a financial technology company. Brause brings more than 35 years of financial services and fintech experience. Before joining DailyPay, he was senior advisor and CFO of Burford Capital. Brause also previously served as CFO of OnDeck Capital. He also held a number of executive roles at CIT Group, Inc., including treasurer, CFO of North American Banking, and president of Small Business Lending and head of Investor Relations. 

Big deal

A new poll by Gallup finds little change from last year in Americans’ characterization of whether they will spend more, less, or “about the same” money on holiday gifts as they did the year prior. Following "the normal pattern," the largest share of consumers, 58%, say they will spend about the same, with a higher percentage saying they will spend less (23%) rather than more (18%), according to Gallup.

Courtesy of Gallup

Going deeper

AI’s Role in Enhancing Trust in Financial Reporting and the Capital Markets, a new report by KPMG, gauges how AI is set to revolutionize financial reporting and audit. The firm surveyed more than 200 finance executives in the U.S., including CFOs and controllers, at organizations with $1 billion or more in annual revenue and 500 or more employees.   

A key survey finding is that 65% are already using AI in the financial reporting function, including a third (36%) that are using it extensively. And 49% are already piloting or deploying generative AI and another third (37%) are in the research and planning phase, according to the report.

Another key finding is there is an expectation that external auditors will use AI and generative AI to quickly and effectively improve the quality of audits. Seventy-two percent believe that auditors are ahead of them when it comes to leveraging AI for financial reporting analysis and they think it is important that auditors are using AI. "Enhancing audit quality by using technology to stay ahead of emerging risks is expected," Scott Flynn, vice chair, audit at KPMG LLP, said in a statement.

Overheard

"I’ve lived in Seattle longer than I’ve lived anywhere else and have so many amazing memories here. As exciting as the move is, it’s an emotional decision for me. Seattle, you will always have a piece of my heart."

—Amazon founder Jeff Bezos announced on Nov. 2 in an Instagram post that he’s moving from Seattle back to Miami, where he went to high school. In doing so, he set off heated debates about state taxes—despite never mentioning them in his announcement, Fortune reported. In the post, Bezos, who has an estimated net worth of $162 billion, expressed his love for Miami and his desire to be near his parents, who recently moved back to the area.