New data from Stanford University reveals that artificial intelligence is now a staple in business operations worldwide. The AI Index Report 2025, covering trends through 2024, shows increased enterprise adoption tied to reduced costs and early performance benefits. “Business is all in on AI, fuelling record investment and usage,” the report states.
AI Adoption Hits Record Levels
According to the report, 78% of organisations now use AI, up from 55% the year before. The adoption of generative AI tools more than doubled, rising from 33% in 2023 to 71% in 2024. AI is no longer limited to pilot programmes; companies are integrating it into daily operations across departments.
Plummeting Costs Drive Uptake
A key factor in AI’s mainstream adoption is the dramatic drop in cost. The price to query an AI model equivalent to GPT-3.5 fell from $20.00 per million tokens in November 2022 to just $0.07 by October 2024 — a 280-fold reduction. In some cases, costs have dropped by up to 900 times, making AI tools accessible to start-ups and smaller teams.
U.S. Leads in Investment
U.S. companies invested $109.1 billion in AI, far outpacing China ($9.3 billion) and the UK ($4.5 billion) in 2024. This dominance reinforces the United States’ leadership in AI research, development, and commercialisation.
Global Trends Show Rapid Uptake
Greater China recorded the largest increase in AI adoption, with a 27-point gain year-over-year. Europe followed with a 23-point increase. North America remains the region with the highest overall adoption. Growth is influenced by infrastructure, regulations, and market readiness.
Early Business Impact
While AI adoption is widespread, revenue gains remain modest. In marketing and sales, 71% of companies report increased revenue, though most say the improvement is less than 5%. The more significant impact lies in efficiency and automation, helping businesses offset labour shortages and streamline operations.
Rise of Smaller and Efficient Models
The report notes a trend toward smaller, more efficient AI models — now 142 times smaller than in 2022 — which can run on standard hardware without sacrificing performance. These models are enabling wider deployment and faster integration across industries.
Marketing and SEO Among Top Beneficiaries
Marketing teams are utilising AI to automate content creation, optimise campaigns, and support strategic planning. The sharp cost decline has made AI tools viable for even small teams, making them central to competitive marketing strategies.
Conclusion
The report concludes that AI is no longer optional as adoption grows. It is now a standard component of enterprise infrastructure. The focus will shift from access to responsible implementation, including training, ethics, and integration into core operations.