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Insights from Avanade Trendlines: AI Value Report 2025
Mid-market organizations are confident that adopting AI applications can deliver up to fourfold returns within 12 months, but first they have to get over obstacles like gaps in workforce readiness, data governance, and tech infrastructure, according to a study from Seattle consulting firm Avanade.
The report found that 85% of businesses are expressing concern over losing competitive ground without rapid AI adoption, and 53% of them expect to increase their budgets for gen AI projects by up to 25%. But despite that enthusiasm, nearly half are stuck at business case (48%) or proof of concept (44%) stage.
The results come from “Avanade Trendlines: AI Value Report.” which includes two surveys conducted by the market research firms McGuire Research Services and Vanson Bourne. Conducted in in August and September 2024, they encompass responses from a total of 4,100 IT decision makers and senior business decision makers across Australia, Brazil, France, Germany, Italy, Japan, Netherlands, Spain, UK, and US.
The potential for generative AI in government and public services
Generative AI has the power to transform public services and deliver significant efficiencies. With Microsoft Copilot, the technology is already here. Governments and public service agencies understand the enormous potential of generative AI. Recent research by McGuire Research Services for Avanade, shows 82% of government employees are using AI on a daily or weekly basis, while 84% of organizations plan to increase their IT investments by up to 24% to take advantage of AI. Many see AI as a driving force for a sector that has often lagged behind on technology, but which now has an opportunity to take a leadership position. What’s more, the technology is available right now. Microsoft Copilot brings the power of large language models (LLMs) directly into the applications agencies already use, enabling powerful productivity tools to be harnessed through simple words and phrases. It can bring vast pools of data together from Word documents and Excel spreadsheets, calendars and emails, chats and meeting notes, along with Power BI reports. It can then use this data to generate new content and deliver information and insights when most needed: as a brief summary, an answer to a question or the first draft of a detailed proposal or report.
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