4 values to consider after Microsoft's 2024 study on AI at work | 2024-05-09

On Wednesday, Microsoft (NASDAQ: MSFT) released the 2024 Work Trends Index, which examines the state of artificial intelligence (AI) in the workplace.
The report reveals that the use of generative AI tools in the workplace has nearly doubled over the past six months, leading us to four strategic stock picks detailed below.
Microsoft creates AI-powered platforms and tools to empower every person and organization on the planet to achieve more
Microsoft (NASDAQ: MSFT) stock has gained more than 33% year over year and more than 222% since 2019.

On Wednesday, Microsoft (NASDAQ: MSFT) released the 2024 Work Trends Index, which examines the state of artificial intelligence (AI) in the workplace.

The report, titled “AI at Work, is here. Now comes the hard part,” draws on a survey of 31,000 people in 31 countries, workforce and hiring trends on LinkedIn, billions of productivity signals of Microsoft 365 and research from Fortune 500 customers, to show that AI is influencing the way we work, lead and hire around the world.

According to the report, the use of generative AI tools in the workplace has almost doubled over the past six months, with LinkedIn seeing a sharp increase in members adding AI skills to their profiles, and most of executives surveyed indicated they wouldn’t hire someone without AI. skills, although many companies struggle to move from experimentation to integrating technology to significantly improve their operations.

To guide executives in their decision-making, the report provides three key insights into how AI will affect the workplace and the broader labor market over the next year:

Employees want AI at work and won’t wait for companies to catch up

About 75% of knowledge workers now use AI at work to save time, spark creativity, and free their schedules from mindless tasks to focus on the work that matters. Still, executives are hesitant about change: 79% agree that adopting AI is essential to remaining competitive, 59% worry about quantifying productivity gains from emerging technology, and 60% lack vision and implementation plan. As a result, 78% of AI users use their own tools at work and businesses are failing to harness the full potential of AI at scale.

For employees, AI raises the bar and exceeds the career ceiling

The report finds that 55 percent of executives are concerned about a talent shortage this year, while 46 percent of global professionals are considering resigning within the next year – the highest level since 2021. A separate LinkedIn study found revealed that this figure in the United States is considerably higher, at around 85 percent. Although AI may be able to bridge this gap, with 66% of executives saying they would not hire someone without AI skills, only 39% of users have received appropriate training on the job, and only 25% of companies plan to offer this this year. Not surprisingly, professionals are improving their AI skills themselves. By the end of 2023, LinkedIn saw a 142-fold increase in members adding AI skills like Copilot and ChatGPT to their profiles and a 160% increase in non-technical professionals using AI-focused LinkedIn Learning courses. The report summarizes this dynamic by saying that “organizations that give their employees AI tools and training will attract top talent, and professionals who hone their skills will have the advantage.”

The rise of AI power users and what they reveal about the future

Microsoft’s research found that there are four types of AI users, reserved for skeptics and power users. Unlike skeptics, who rarely use AI tools, power users have reoriented their workday in fundamental ways, saving more than 30 minutes per day in comparison. More than 90% of AI power users say the technology makes their workloads more manageable and enjoyable, with 61% more likely to have heard about AI from their CEO, 53 percent more likely to be encouraged by their leaders to explore how AI could improve their roles, and 35 percent more likely to receive AI training tailored to their roles.

Leadership Perspectives

“AI is democratizing expertise within the workforce,” Satya Nadella, president and CEO of Microsoft, said in a statement. “Our latest research highlights the opportunity for every organization to apply this technology to improve decision-making, collaboration and ultimately business outcomes.

“AI is redefining work, and it’s clear we need new playbooks, CloseCurlyDoubleQuote; added Ryan Roslansky, CEO of LinkedIn. “It’s the leaders who prioritize agility over stability and invest in developing the skills internally that will give their organization a competitive advantage and create more effective, engaged and equitable teams. »

AI Stocks to Consider Based on Microsoft’s 2024 Work Trend Index

Taking the report as a guide, we can quickly infer that AI’s ability to refine and accelerate decision-making has the potential to impact every industry on the planet. This puts a premium on companies with value-added tools that have already proven themselves in the market, but have not yet generated enough investor confidence for that value to be accurately reflected in stock prices .

While readers can gain exposure to the broader AI market through funds such as the Global X Robotics and AI Index ETF or the Evolve Artificial Intelligence Fund, here are four stocks to consider as satellite positions in the search for outperformance of the market :

Healwell AI (TSX: AIDX) – market cap of CA$214.55 million, with shares down 33.82% year over year – develops and markets systems to help healthcare providers in health to detect rare and chronic diseases, improve their effectiveness and improve patient outcomes. The company counts digital healthcare leader Well Health (TSX: WELL) as a strategic partner and investor.

Nextech3D.ai (CSE:NTAR) – market cap of CA$20.1 million, with shares down 77.61% year-over-year – uses proprietary AI to create immersive 3D experiences on a large scale for some of the world’s largest retailers. The company is also a majority shareholder in a number of AI companies that operate a 3D design studio, navigation and wayfinding tools, and virtual events technology, all of which are relevant to businesses.

Fobi AI (TSXV: FOBI) – market cap of CA$17.63 million, with shares down 79.49 percent year over year – is a data analytics company that has worked with a growing number of leading clients like Amazon Web Services, Square. , the Nasdaq Stock Exchange and MGM Resorts.

POET Technologies (TSXV: PTK) – market cap of CA$142.65 million, with shares down 51.57 percent year over year – designs and develops high-speed optical modules, optical engines and light source products to improve data transmission in AI systems. and data center markets. POET’s products are smaller, less expensive, use less energy and can be produced in higher volumes than those of its competitors, making it a disruptor in its multi-billion dollar markets.

Readers looking to broaden their understanding of AI for more forward-looking stock picking can watch Stockhouse’s Ryan Dhillon outline the top three Canadian AI stocks, as well as Coreena Robertson’s interview with Kevin Matsui, executive director of the Center for Advancing Responsible and Ethical Artificial. Intelligence at the University of Guelph, on where investors can find strong growth in AI.

About Microsoft

Microsoft creates AI-powered platforms and tools to enable every person and every organization on the planet to achieve more.

Microsoft (NASDAQ: MSFT) stock opened with a loss of 0.04 percent at US$410.37 per share. The stock has gained more than 33 percent year over year and more than 222 percent since 2019.

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