Stanford College’s newest AI Index Report reveals a major enhance in AI adoption amongst companies.
Now 78% of organizations use AI, up from 55% a yr in the past. On the identical time, the price of utilizing AI has dropped, changing into 280 instances cheaper in lower than two years.
Extra Companies Than Ever Are Utilizing AI
The most recent report, now in its eighth yr, reveals a turning level for AI in enterprise.
The variety of organizations utilizing generative AI in at the very least one enterprise space greater than doubled, from 33% in 2023 to 71% in 2024.
“Enterprise is all in on AI, fueling file funding and utilization,” the report states.
In 2024, U.S. firms invested $109.1 billion in AI, practically 12 instances greater than China’s $9.3 billion and 24 instances greater than the U.Okay.’s $4.5 billion.
AI Prices Are Dropping
One motive extra firms are utilizing AI is that it’s changing into more and more inexpensive. The report signifies that the price of working AI queries has decreased considerably.
The report highlights:
“The price of querying an AI mannequin that performs like GPT-3.5 dropped from $20.00 per million tokens in November 2022 to simply $0.07 per million tokens by October 2024.”
That’s 280 instances cheaper in about 18 months.
Costs have dropped between 9 and 900 instances per yr, relying on the use case for AI. This makes highly effective AI instruments rather more inexpensive for firms of all sizes.
Regional Variations and Enterprise Affect
Completely different areas are adopting AI at totally different charges.
North America stays the chief, however Larger China has proven essentially the most vital leap, with a 27-point enhance in firm AI use. Europe was subsequent with a 23-point enhance.
For advertising groups, AI is beginning to present monetary advantages. About 71% of firms utilizing AI in advertising and gross sales report elevated income, though most say the rise is lower than 5%.
This means that whereas AI helps, most firms are nonetheless determining learn how to use it finest.
What This Means for Entrepreneurs & search engine optimisation Execs
These findings matter for a number of causes:
- The drop in AI prices means highly effective instruments are getting extra inexpensive, even for smaller groups.
- Firms report that AI boosts productiveness and helps bridge ability gaps. This will allow you to perform extra with restricted assets.
- The report notes that “smaller fashions drive stronger efficiency.” In the present day’s fashions are 142 instances smaller than the 2022 variations, so extra AI instruments can run on common computer systems.
The 2025 AI Index Report clarifies that AI is not an experimental expertise, it’s a mainstream enterprise software. For entrepreneurs, the query isn’t whether or not to make use of AI, however learn how to put it to use successfully to remain forward of opponents.
For extra insights, see the complete report.
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