Organizations that want to reimagine their business with AI are concentrating on three areas: custom solutions, agentic AI and broader organizational investment.
1. Custom AI solutions for differentiation
Today, 58% of Frontier Firms are using custom AI solutions, and 77% plan to do so within 24 months. Custom AI lets you embed your own data, tone and compliance requirements into every interaction, improving prediction accuracy and alignment with your business model.
Example: Ralph Lauren built Ask Ralph, an Azure OpenAI–powered conversational tool that offers styling tips and outfit recommendations. It interprets natural language, understands tone and intent, and uses context like location or events to refine suggestions—reshaping how customers shop online.
2. Agentic AI as a new differentiator
Agentic AI systems can reason, plan and act with human guidance. IDC expects the number of companies using agentic AI to triple in the next two years. These agents are already being used to:
- Support finance teams with real-time insights, policy guidance and document review.
- Help sales teams build pipeline, unify CRM and communication data and draft personalized outreach.
- Enhance customer service by managing cases and interpreting customer intent.
Dow, for example, receives over 100,000 shipping invoices a year. It built autonomous agents in Copilot Studio to scan for billing inaccuracies and surface them in dashboards. A second agent lets employees query the data in natural language. This shift from weeks or months of manual work to minutes is expected to save Dow millions of dollars in shipping costs in the first year.
3. Scaling budgets and teams for AI
AI is moving from side project to core capability:
- 71% of organizations plan to increase their AI budgets.
- 34% are adding net new investment.
- 24% are repurposing existing IT budgets.
- 13% are reallocating funds from non-IT areas like operations, HR or marketing.
IDC projects AI could contribute $22.3 trillion to the global economy by 2030 (about 3.7% of global GDP). To capture your share, you’ll need not only technology, but also governance, measurement and cross-functional collaboration.
In short, moving toward Frontier Firm status means treating AI as a strategic imperative—investing in custom and agentic capabilities, building secure and scalable infrastructure and aligning teams and budgets around clear, measurable business outcomes.