A new report from technology company Microsoft shows that while 68% of businesses are using artificial intelligence (AI) today, the difference in results depends on how the technology is applied. Companies identified as “Frontier Firms” or those leading in AI adoption, report returns three times higher than slower adopters.
Microsoft commissioned the study with the market intelligence firm International Data Corp. (IDC), surveying more than 4,000 business leaders responsible for AI decisions. The research highlights how AI can go beyond improving efficiency, helping companies drive growth, expand operations, and strengthen their position in the market.
“On average, Frontier Firms report better outcomes at a rate that is four times greater than slow adopters across brand differentiation, cost efficiency, top-line growth, and customer experience,” Alysa Taylor, chief marketing officer for Commercial Cloud and AI at Microsoft, said in a blog post.
Taylor also pointed out that many companies start their AI journey with personal productivity gains, but Frontier Firms are moving further by applying AI to industry-specific challenges.
“Industries at the forefront include financial services, healthcare, and manufacturing. Each is finding practical ways to apply AI to its most complex challenges,” she said.
In finance, AI strengthens fraud detection, accelerates transaction reconciliation, and improves customer support. In healthcare, it helps clinicians generate accurate documentation, assist in diagnostics, and deliver more personalized care. Manufacturing firms use AI for predictive maintenance, optimizing production schedules, and automating quality inspections.
The report noted that 58% of Frontier Firms are using custom AI solutions, and 77% plan to adopt them within two years.
“Custom AI solutions allow businesses to embed proprietary knowledge, tone, and compliance into every interaction,” said Taylor. “They can be fine-tuned on proprietary data or industry-specific knowledge, enabling higher accuracy in predictions or content generation and better alignment with business goals and compliance needs.”
Agentic AI, systems that can reason, plan, and act with human guidance, is becoming a key differentiator. Taylor described its role in business:
“In finance, they can surface real-time insights, provide policy guidance, review deal documents, and assist in sourcing suppliers. In sales, agents are becoming always-on teammates, building pipelines, unifying insights across CRM systems, meetings, emails, and the web, and helping sellers qualify leads and draft personalized outreach. In customer service, AI agents can manage cases, maintain knowledge accuracy, and interpret customer intent.”
Seventy-one percent of businesses plan to increase AI budgets, with funding coming from IT and non-IT sources.
“IDC is projecting that the global economic impact of AI is projected to reach $22.3 trillion by 2030,” said David Schubmehl, VP AI and Automation for IDC. “Estimating the return on AI investments requires both strong measurement capabilities and a robust business case — one that models both cost implications and the potential for responsible value creation.”