Microsoft Shifts Focus from AI Adoption to Measuring Business Outcomes

Microsoft's approach to artificial intelligence has shifted from simply adopting AI tools to measuring their impact on business outcomes. According to Kathleen Hogan, executive vice president and chief strategy and transformation officer, 'Access to AI will not be the differentiator.' The company is now focusing on empowering employees, redesigning work, governing AI responsibly, and operationalizing what works.

The results are already visible. In a sales pilot from January to June 2024, sellers who used Microsoft 365 CoPilot at least half of the time saw a 9.4% increase in revenue per account manager and a 20% increase in close rates compared to those with 'low usage' of AI.

In its cloud supply chain, Microsoft deployed over 100 AI agents across planning, sourcing, fulfillment, and logistics. The agents investigate shifts in demand and model capacity while comparing transportation options on cost, timing, and carbon impact. Cycle time fell by up to 75% in selected workflows.

Microsoft has also outlined its position on the development of autonomous AI systems in a draft code of conduct for its AI models. The company states that AI should remain 'subordinate to humanity' and subject to meaningful human oversight and control.