New insights: Here are the benefits and challenges of implementing AI in business processes
New insights from AlfaPeople’s report, Microsoft AI Solutions in Business Processes: Outlook 2025, reveal the benefits companies experience. These benefits arise from implementing AI in business technologies and processes
Two of the most tangible benefits are financial: cost reduction and revenue increase. AI in business technologies have proven effective. Thirty-six percent of respondents attribute up to 10 percent of their cost reductions to AI implementation. Additionally, 22 percent of respondents attribute up to 10 percent of their revenue increase to AI implementation.
These findings are supported by data from the IDC Business Value of AI Survey 2023. Organizations are realizing a return on their AI investments within 14 months.
Non-financial benefits of AI in business technologies integration
However, integrating AI is not just about cost reduction and revenue increase. Several nonfinancial benefits can be the result of AI integration within an organization’s business processes. According to data in Microsoft AI Solutions in Business Processes: Outlook 2025, 58 percent have experienced Enhanced Employee Productivity. Additionally, 45 percent have experienced Innovation and Competitive Advantage, while 40 percent report Improved Customer Satisfaction. Data from the IDC Business Value of AI Survey 2023 supports these findings, concluding that AI in business technologies has demonstrable business value within areas like employee experience, customer engagement, and internal business processes. AI can also help bend the curve on innovation.
Major challenges in implementing AI
Even though companies report cost reduction, revenue increase, and other benefits attributed to AI, many still face major challenges in implementing AI in business technologies.
Lack of Expertise/No Internal Expertise is flagged by 64 percent as a major challenge. Data Privacy and Security (35 percent) takes second place among challenges, while Training and Change Management, Regulatory Compliance, and Data Quality and Reliability (33 percent) share third place.
Do you want to read more about the benefits and challenges of implementing AI in business technologies? Download Microsoft AI Solutions in Business Processes: Outlook 2025 now.
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