A new ‘AI divide’ is emerging, and businesses on the wrong side of it are at risk of being quickly outpaced by those with greater AI literacy, according to new research from Microsoft.
The study found that while roughly half of businesses and organizations have a clear AI strategy in place, and are preparing for emerging trends in the technology like agentic AI, a similar proportion do not — creating a lost opportunity to boost economic growth and improve public services.
The good news is that if you fear your business is on the wrong side of the divide, it’s never too late to develop an effective AI strategy. We explain how this can be done, and why it’s becoming more important than ever for businesses to close the gap by realizing the full potential of AI.
What Is the “AI Divide”?
Ever since OpenAI released ChatGPT in 2022 and advanced language processing became widely accessible to the public, a rift emerged between businesses that fully capitalized on the technology, and those that didn’t.
New research from Microsoft reveals that this rift has expanded into a full-blown divide, at least for businesses and organizations within the UK.
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The study, which is based on a survey of 1,480 UK senior leaders across public and private sectors and 1,400 UK employees, found that just under half (45%) of business leaders currently have a formal AI strategy. It’s these businesses, the report finds, that are outperforming the 55% of businesses that aren’t using AI to its potential, when it comes to productivity and profitability.
At a time when UK employees are dealing with escalating workload pressures, Microsoft’s survey also revealed that this AI divide extends to the workforce, with more than half of business leaders reporting a widening efficiency and productivity gap between workers who use AI and those who don’t.
Adopting AI Agents Is Becoming a Necessity For Many Businesses
Using tools like ChatGPT and Microsoft Copilot is a great way to streamline workplace processes, and get your business’s feet wet with AI technology.
Yet, Microsoft’s research suggests that AI agents hold the key to significantly improving operational efficiency, especially for businesses with complex administrative processes like those in healthcare, banking and finance, and retail industries.
“Agentic AI covers a range of virtual tools – or ‘agents’ – from simple chatbots that retrieve information and answer questions; tools like Copilots which automate tasks and workflows; through to fully autonomous systems that learn, plan, and act with minimal human input.” – Microsoft’s UK reporter
According to Microsoft’s report, agentic AI technologies can help businesses overcome barriers to productivity and unlock growth. Speaking on the matter, the UK’s Secretary of State for Science, Innovation and Technology agrees, explaining that agents will play a key role in closing the widening AI divide, by enabling organizations to work smarter, not harder.
The good news is that despite being a relatively new AI trend, the majority of UK business leaders are already aware of the technology potential, with 72% of respondents expecting AI agents to be fully integrated into their operations at some point in the near future.
And while Microsoft may have a vested interest in the matter, findings from our latest Annual Impact of Tech on the Workplace report agree. Out of the senior leaders we surveyed in the US, 88% recognize the link between technology and productivity. A smaller proportion are willing to put their money where their mouth is too, with almost 10% of AI-using businesses spending $500,000 on the technology each year.
But as we explain next, for businesses falling on the wrong side of the AI divide, it’s never too late to play catch up.
How to Develop a Fool-Proof AI Strategy
If you fear your business isn’t using AI to its full potential, there are a number of actions your organization can take today to maintain its competitive edge.
If you’re starting from scratch, Microsoft recommends looking for automation opportunities first. You can do this by identifying processes that would benefit the most from automation, such as those featuring repetitive tasks or high error rates. Then, after you’ve identified inefficiencies that AI could address, you can explore industry use cases to understand how similar organizations are using AI to solve problems.
As the results of Microsoft’s survey found, deploying agentic AI could also be a good place to start, especially if you already have a basic understanding of the technology. According to the company, simple applications include using a customer-facing chatbot for a bank to fetch relevant data and streamline queries, while more advanced applications include developing an AI agent to manage more complex processes, like onboarding workflows or company supply chains.
Whichever strategy you adopt, it’s also important to clearly define your businesses AI goals, before regularly reviewing your success against these metrics. Understanding the potential and the risks of the technology go hand in hand too. So, aside from ensuring your staff has adequate AI training, we also recommend developing an AI policy with clear guardrails, to ensure that your business is using the technology ethically, safely, and in compliance with regulations.
Learn how to build an AI policy for your business, in five simple steps.