Copilot ROI: Is Microsoft Copilot Worth the Investment?

In today’s highly competitive market, it has become imperative to infuse your business with some added help in the form of artificial intelligence. From saving time and cost while maintaining quality, AI has been nothing but a boon to many businesses from all over the world… but is there any data to backed up the feeling? After all, everything in business is related to data, and if we want to understand the effectiveness of AI in the workplace, we should be able to see it.

That is why Microsoft 365 Copilot is coming out with its own impact research that pertains to the return on investment that AI can bring to an organization. Based on a study conducted by Forrester Consulting in April 2024 and commissioned by Microsoft, Copilot ROI is now the focus as we enter this new year.

The study outlines the projected financial and operational benefits of deploying Microsoft 365 Copilot across enterprises, and we have all the information for you right here. Keep reading to learn more about Copilot ROI and how it can benefit your business.

Key Highlights of the Copilot ROI Study

Before we drop in some figures, it is important to understand the relevance of the study. Some of the key highlights of the Copilot ROI study conducted by Forrester helps us make sense of the numbers that follow.

The study was commissioned by Microsoft to analyze the potential return on investment (ROI) of Microsoft 365 Copilot. It is based on a composite organization made up of 25,000 employees with $6.25 billion in annual revenue. This helps paint the picture of the company so that you can easily understand the context of the study.

The report on the Copilot ROI identified 3 core areas of impact: Cost Optimization, Revenue Growth and Employee Productivity and Satisfaction. Now, let us delve into each of these aspects to see how the Copilot ROI impacted them.

Copilot ROI based on Cost Optimization

Cost optimization is one of the core objectives of any company. And business leaders are always trying to find ways to decrease their cost without it meaning low quality or service. And one way to do that is with Microsoft 365 Copilot.

Based on the findings of the study, the following results were put forward:

• $56.7 million projected savings in expenditures over three years.
• 8.45% increase in net margin from cost reductions.

These figures show the power of AI in business processes when it comes to cost optimization. These were mostly achieved due to the Microsoft 365 Copilot helping in various ways, such as:

• Copilot saves time on mundane tasks. For instance, Copilot in Outlook can summarize emails and draft responses at lightning speed, freeing you up from time that can be spent doing more high-quality work.
• Copilot helps reduce external spending. Thanks to Copilot, you do not need to hire any extra additional help to perform tasks, as the AI tool acts like your own little assistant.
• Copilot helps to increase worker productivity. An example is Copilot for Sales that can help employees to automate repetitive tasks such as creating contacts, updating opportunities, scheduling meetings and generating follow-up emails.
• Microsoft 365 Copilot also enables supply chain efficiencies. Thanks to its smart application and use of natural language, Copilot can help supply chain managers with their stock levels at any times.

Copilot ROI and Revenue Growth

Another avenue that the Forrester study investigated upon was the revenue growth of enterprises. The use of AI is all good, but it needs to drive revenue growth and contribute positively to the success of the company. This Copilot ROI also saw great outcomes, with results that encompasses the following:

• $35.6 million projected increase in net income over three years.
• 4% projected topline revenue growth over three years.

This is a testament to the effectiveness of Microsoft 365 Copilot and how it can truly make a difference to your company. The AI tool helped achieve higher revenue by doing the following:

• Microsoft 365 Copilot helps achieve a higher win rate in sales. Thanks to Copilot for Sales, employees have a 360 view of the customer, and you are sure that no potential leads slip through the cracks. This helps the sales team foster relationships with clients and maintain their loyalty for a long time.
• Copilot also helped when it comes to marketing of new products and services. Thanks to Copilot for Marketing, you can easily create well-defined customer segments, draft email campaigns and build an entire customer journey from A to Z. This saves you time as well as push your launch strategy faster.
• It also goes without saying that with the introduction of AI, you get the chance to be amongst the first to embrace innovation. This accelerated innovation ensures that your company always stay ahead of the competition and leverage the best of Microsoft 365 Copilot for a higher ROI.

Example of Copilot ROI and Revenue Growth

Let’s look at a case study as an example of how Copilot ROI and revenue growth works in tandem with each other. In the Forrester study, they mentioned a professional services firm that uses Copilot and due to which saw a spike of 10% more sales proposals that were completed per month.

This is a huge accomplishment for a business, as it showcases that the introduction of Microsoft 365 Copilot has had a positive impact on the company. It helped secured more leads, which in turn became paying clients. Moreover, they also mention that the deal closure times were reduced from 30 days to 20 days.

Copilot ROI when it comes to Employee Productivity and Satisfaction

The third and final part of the study had to do with employee productivity and satisfaction. This is an important Copilot ROI as the resistance to change and fear from employees can negatively affect your business. However, this was the complete opposite when it came to Microsoft 365 Copilot. Thanks to proper guidance and training, employees enjoyed doing their job more, so much so that:

• $2.1 million savings in new hire onboarding costs.
• 30% reduction in onboarding time.
• Post-meeting recaps reduced from 30 minutes to 5 minutes.
• Job description writing time reduced from 4 hours to 30 minutes.
• Projected 12% reduction in employee churn.

This is a big step towards the future as we inculcate more AI into businesses to maximize efficiency. This also shows that the existence of humans and AI in the workplace is possible and recommended.

And now, if we look at the overall Copilot ROI and the financial metrics that come with it, we will see that there is a:

• 457% return on investment (ROI)
• $77.4 million in net present value (NPV)
• $94.4 million in total present value (PV)

This means that it is an enterprise-wide impact, whereby organizations deploying Microsoft 365 Copilot can see transformation in all areas of their business. Businesses should investigate supercharging their operations with AI, and the Copilot ROI figures displayed here are an incentive for organizations to seek out AI-powered business solutions.

Gestisoft: Your AI Partner in Canada

While the implementation and use of AI is welcomed, it is more important to know how to set up it and use it efficiently. That is why it is recommended to partner up with an expert, like Gestisoft, to ensure a smooth transition. With over 27 years of experience, Gestisoft offers a wide range of AI solutions for companies throughout North America.

Our team is dedicated to helping your organization successfully implement and use Microsoft 365 Copilot so that you achieve the same Copilot ROI figures listed in this article. Do not hesitate and get in touch with our AI professionals to book your free consultation today. We look forward to collaborating with you.