- On Wednesday, Microsoft (NASDAQ:MSFT) released the 2024 Work Trend Index, which looks into the state of artificial intelligence at work
- The report finds that the use of generative AI tools in the workplace has almost doubled in the past six months, leading us to four strategic stock picks detailed below
- Microsoft creates platforms and tools powered by AI to empower every person and every organization on the planet to achieve more
- Microsoft stock has gained more than 33 per cent year-over-year and more than 222 per cent since 2019
Microsoft (NASDAQ:MSFT) on Wednesday released the 2024 Work Trend Index, which looks into the state of artificial intelligence (AI) at work.
The report, titled “AI at work is here. Now comes the hard part,” draws on a survey of 31,000 people across 31 countries, labour and hiring trends on LinkedIn, trillions of Microsoft 365 productivity signals, and research with Fortune 500 customers, to show that AI is influencing how we work, lead and hire around the world.
According to the report, use of generative AI tools in the workplace has almost doubled in the past six months, with LinkedIn seeing a robust increase in members adding AI skills to their profiles, and most leaders surveyed noting they wouldn’t hire someone without AI skills, though many companies are struggling to move from experimentation to integrating the technology to meaningfully improve operations.
To guide leaders in their decision making, the report provides three key insights about how AI will affect the workplace and the broader labour market over the next year:
Employees want AI at work and won’t wait for companies to catch up
Approximately 75 per cent of knowledge workers now use AI at work to save time, boost creativity and clear their schedules of mindless tasks to focus on important work. Nevertheless, leaders are hesitant to change, with 79 per cent agreeing that AI adoption is key to remaining competitive, 59 per cent worrying about quantifying productivity gains from the emerging technology, and 60 per cent lacking a vision and implementation plan. Consequently, 78 per cent of AI users are bringing their own tools to work and companies are falling short of the full potential of AI use at scale.
For employees, AI raises the bar and breaks the career ceiling
The report finds that 55 per cent of leaders are concerned about a talent shortage this year, while 46 per cent of global professionals are considering quitting in the next year – an all-time high since 2021. A separate LinkedIn study found the number in the United States to be considerably higher at about 85 per cent. Though AI may be able to close this discrepancy, with 66 per cent of leaders saying they wouldn’t hire someone without AI skills, only 39 per cent of users have received appropriate training at work, and only 25 per cent of companies expect to offer it this year. Unsurprisingly, professionals are enhancing their AI skills on their own. As of late 2023, LinkedIn has seen a 142x increase in members adding AI skills like Copilot and ChatGPT to their profiles and a 160 per cent increase in nontechnical professionals using LinkedIn Learning courses focused on AI. The report sums this dynamic up by saying that, “organizations that empower employees with AI tools and training will attract the best talent, and professionals who skill up will have the edge.”
The rise of the AI power user and what they reveal about the future
Microsoft’s research found four types of AI users, bookended by skeptics and power users. Unlike skeptics, who rarely use AI tools, power users have reoriented their workdays in fundamental ways, saving over 30 minutes per day in comparison. More than 90 per cent of AI power users say the technology makes their workloads more manageable and enjoyable, with 61 per cent of them more likely to have heard about AI from their CEOs, 53 per cent more likely to be encouraged by leadership to explore how AI could enhance their roles, and 35 per cent more likely to receive tailored AI training for their roles.
Leadership insights
“AI is democratizing expertise across the workforce,” Satya Nadella, Microsoft’s chairman and CEO, said in a statement. “Our latest research highlights the opportunity for every organization to apply this technology to drive better decision-making, collaboration – and ultimately business outcomes.”
“AI is redefining work, and it’s clear we need new playbooks,” added Ryan Roslansky, CEO of LinkedIn. “It’s the leaders who build for agility instead of stability and invest in skill building internally that will give their organizations a competitive advantage and create more efficient, engaged and equitable teams.”
AI stocks to consider based on Microsoft’s 2024 Work Trend Index
Taking the report as our guide, we can quickly deduce that AI’s ability to sharpen and expedite decision-making has the potential to affect every industry on the planet. This puts a premium on companies with value-added tools that are already proving their worth in the marketplace, but have yet to garner enough investor sentiment 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 pursuit of market outperformance:
Healwell AI (TSX:AIDX) – market capitalization C$214.55 million, with shares down by 33.82 per cent year-over-year – is developing and commercializing systems to help healthcare providers detect rare and chronic diseases, improve efficiency 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 capitalization C$20.1 million, with shares down by 77.61 per cent year-over-year – uses proprietary AI to craft immersive 3D experiences at scale for some of the world’s leading retailers. The company is also a majority shareholder in a number of AI companies that operate a 3D design studio, navigating and wayfinding tools and virtual event technology, all of which are relevant to enterprises.
Fobi AI (TSXV:FOBI) – market capitalization C$17.63 million, with shares down by 79.49 per cent year-over-year – is a data analytics company that has worked with a growing number of high-profile customers such as Amazon Web Services, Square, the Nasdaq stock exchange and MGM Resorts.
POET Technologies (TSXV:PTK) – market capitalization C$142.65 million, with shares down by 51.57 per cent year-over-year – designs and develops high-speed optical modules, optical engines and light source products to enhance data transmission in the AI systems and data centre markets. POET’s products are smaller, lower cost, consume less power and can be produced in higher volumes than its competitors, making it a disruptor in its multi-billion-dollar markets.
Readers interested in broadening their understanding of AI towards more prospective stock picks can watch Stockhouse’s Ryan Dhillon profile 3 top Canadian AI stocks, as well as Coreena Robertson’s interview with Kevin Matsui, managing director of the Centre for Advancing Responsible and Ethical Artificial Intelligence at the University of Guelph, about where investors can find strong growth in the AI space.
About Microsoft
Microsoft creates platforms and tools powered by AI to empower every person and every organization on the planet to achieve more.
Microsoft Corp. stock (NASDAQ:MSFT) opened with a loss of 0.04 per cent, trading at US$410.37 per share. The stock has gained more than 33 per cent year-over-year and more than 222 per cent since 2019.
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