144 THE LAST WORD Frontier firms lead with AI Many organisations are using AI today, but as findings from a Microsoft-sponsored IDC report show, the real difference to their success lies in how they’re implementing it BY ALICE CHAMBERS Frontier firms have emerged as the standout performers in IDC’s Accelerating innovation with AI report, which was sponsored by Microsoft. These are organisations that don’t treat AI as a side project but instead embed it into their core business strategy by combining human expertise with agent-operated systems. The result is impressive: they are achieving three times higher returns than their slowermoving peers. Across the 4,000 companies IDC surveyed, most are becoming increasingly comfortable with AI, with 68 per cent already using it for a variety of operational and customer-facing tasks. But frontier firms are pushing beyond using AI for efficiency gains. They are actively monetising AI, with 67 per cent boosting revenue through industry-specific innovations. For banks, this means stronger fraud detection. In healthcare, it enables personalised treatment pathways. And manufacturers are tapping AI to refine production schedules, automate quality checks and predict maintenance needs before machines fail. This shift is reflected in how organisations are funding AI. One-third are investing new capital into AI initiatives, while others are reshaping their existing budgets: 24 per cent repurpose IT spend and 13 per cent reallocate funds from functions like operations, HR or marketing. Agentic AI could prove to be the next leap forward. Only 37 per cent of organisations use it today, but interest is climbing. Frontier firms are already applying agentic systems in product development, customer engagement and support, demonstrating how dynamic AI agents can independently complete tasks, inform decisions and automate complex workflows. Still, frontier firms remain rare. Just 22 per cent of organisations qualify globally – according to Microsoft’s standards – with financial services and telecommunications identified as the leading industries. Those already in the frontier category are using agentic AI across customer service, IT, cybersecurity, and sales and marketing. Many are now tailoring their generative AI models, with 58 per cent deploying customised systems and 77 per cent planning deeper personalisation by 2028. From these findings, Microsoft has identified five lessons for becoming a frontier firm: embrace AI across every business function; evolve from task automation to proactive AI-driven decision-making; customise the technology to reflect proprietary data and regulatory obligations; adopt agentic AI as the next source of competitive advantage; and foster cross-functional collaboration to fully unlock the potential of AI.
RkJQdWJsaXNoZXIy NzQ1NTk=