The Financial Impact of Deploying Copilot

Digtial Transformation

In recent months we have seen an increase in key stakeholders within SMBs interested in discovering the benefits of integrating AI technologies like Microsoft 365 Copilot.

Discussion have been primarliy around helping them understand how the initial investment will deliver tangible and measurable efficiencies, cost-savings that improve their competitive edge.

In this blog, we will delve into the financial benefits and cost savings associated with Copilot, providing a clear and honest review based on research and real-world examples.

“With Copilot, we have faster turnarounds…with the ability to turn things around more quickly, clients can come to us with more work. It can be 15% more business.”

—Forrester Study: Head Vice President of Technology Services, Managed Technology Solutions

To provide a more concrete understanding of Copilot’s financial impact, let’s explore how the ROI on the investment could be quantified.

Microsoft’s early adoption studies suggest most businesses see initial benefits within 2-4 weeks of implementation, with full productivity gains realised within 3-6 months.

Quantifying Time Savings

Document Creation and Analysis

• 70% faster content creation
• 50% improvement in accuracy
• Average time savings of 2.5 hours per week on document-related tasks

Email Management

• 96% faster email drafting
• Improved response quality
• Better email organisation and prioritisation

Meeting efficiency

• 70% reduction in meeting summary creation time
• 29% increase in meeting productivity
• Estimated savings of 1-2 hours per week per employee

Basic ROI formula

Monthly ROI = (Value of Time Saved + Productivity Gains) – (License Costs + Implementation Costs)

Detailed Calculation Example

Based on a 50-person SMB

Time Savings:

• Average hourly rate: £30
• Hours saved per week: 3.5 (conservative estimate)
• Monthly time savings: £18,900 (50 employees × £30 × 3.5 hours × 4.33 weeks)

Monthly Costs:

• License costs: £1,500 (50 × £30)
• Implementation amortized: £500
• Total monthly cost: £2,000

Net Monthly Benefit: £18,900 – £2,000 = £16,900

“In terms of getting the information to the various departments and having my legal assistants then redo it, so they can enter that data and answer questions from other departments more easily. My guess is on contract review we’ll save at least 50% of time in the coming years.”

—Forrester study: General Counsel, Chief Diversity Officer at the Staffing, IT, and Business Solutions Firm

To understand the financial impact of deploying Copilot, we can refer to the Total Economic Impact™ (TEI) study conducted by Forrester Consulting and Microsoft’s Work Trend Index: “AI at Work Is Here. Now Comes the Hard Part.”

This study, commissioned by Microsoft, provides a comprehensive analysis of the potential return on investment (ROI) that enterprises may realise by integrating Copilot into their operations.

The study highlights several key areas where Copilot can deliver significant cost savings and productivity gains:

Copilot’s ability to analyse data and provide real-time insights empowers employees to make informed decisions quickly. This can lead to improved business outcomes and reduced operational costs.

One of the primary benefits of Copilot is its ability to automate repetitive tasks and streamline workflows. By reducing the time employees spend on mundane activities, Copilot allows them to focus on more strategic and value-added tasks.

By automating routine tasks and optimising workflows, Copilot can help organisations reduce operational costs. For example, Copilot can assist with data entry, document generation, and meeting summaries, eliminating the need for manual intervention.

When employees are freed from mundane activities, they can focus on more meaningful and engaging work. This not only boosts morale but also reduces turnover rates, leading to additional cost savings associated with recruitment and training.

While the financial benefits of deploying Copilot are clear, it’s important for UK SMBs to consider several key factors to ensure a successful implementation.

While the initial investment in Copilot may seem substantial, the ROI calculation shows clear financial benefits for most SMBs. Beyond the numbers, the strategic advantage of enhanced productivity and improved work quality provides long-term value that extends beyond simple cost savings.

To maximise the benefits of Copilot, organisations must ensure that their data is clean, organised, and easily accessible. Proper data preparation is crucial for achieving accurate and meaningful insights from AI-powered tools.

Developing thoughtful policies and procedures is essential to ensure compliance with regulations and legal requirements. This includes establishing guidelines for data privacy, security, and ethical use of AI.

AI technologies are constantly evolving, and it’s important for organisations to stay updated with the latest advancements. Providing ongoing training and support to employees can help them leverage Copilot effectively and maximise its benefits.

Forming a dedicated working group and involving key stakeholders from various departments can facilitate a smooth transition to AI-powered tools. Regular communication and collaboration can help address any challenges and ensure that Copilot is integrated seamlessly into existing workflows.

“People have a lot of anxiety [about going] on vacation because of what they’re going to miss. Well, the ability to ramp up fast with summarization on a lot of those key meetings doesn’t just save the person the time, but it also is going to save the other leaders in the organization the time to have to ramp them up.”

—Forrester study: President, Staffing, IT, and Business Solutions

Deploying Microsoft 365 Copilot can deliver significant financial benefits and cost savings for small to medium-sized businesses in the UK.

By automating repetitive tasks, enhancing decision-making, and improving employee productivity, Copilot can help organisations achieve their business goals more efficiently. Real-world examples and research studies, such as the TEI study by Forrester Consulting, provide compelling evidence of the positive impact of Copilot on operational costs and overall business performance. As UK SMBs continue to navigate the challenges of a rapidly changing business landscape, integrating AI technologies like Copilot can be a game-changer, driving growth and innovation.

Sources

2024 Work Trend Index Annual Report from Microsoft and LinkedIn  |  Microsoft Work Trend Index Special Report 2023  | The Radicati Group Email Statistics Report, 2023  | Microsoft 365 Copilot Early Adopter Study Results  | UK Digital Transformation Council SMB Report 2023

Total Economic Impact™ (TEI) Study by Forrester Consulting: Forrester TEI Report: Microsoft 365 Copilot’s Impact on Nonprofits

Microsoft 365 Copilot drives up to 353% ROI for small and medium businesses

Microsoft 365 Copilot Impact Report: Microsoft 365 Copilot impact report | Microsoft Learn

Note: All calculations are based on available data and industry averages. Individual results may vary based on implementation quality, user adoption, and specific business circumstances.