The Microsoft AI Tour Singapore 2025, held in February, provided a crucial platform for industry leaders, decision-makers, and technology experts to discuss the transformative power of artificial intelligence (AI). Kenny Yeo, Director, Information & Communication Technologies (ICT) Practice at Frost & Sullivan believes that AI is no longer a future aspiration but a present-day necessity.
He says, “Organisations across industries are accelerating their AI transformation journeys, not just as a competitive differentiator but as a fundamental pillar of business success.”
Here he explores the urgency of AI transformation in organisations and explains that advancements in AI research and applications do not follow a linear trajectory; instead, he suggests they unfold in overlapping waves:
● Predictive AI: Early AI systems focused on data analysis and forecasting, providing businesses with insights into trends and patterns to drive informed decision-making.
● Generative AI: The next wave of AI introduced content creation capabilities, enabling automation in design, text generation, and even software development.
● Agentic AI: The frontier we are now approaching involves AI systems with autonomous reasoning and multi-step problem-solving abilities, enhancing complex workflows and decision-making processes. As defined by Microsoft, AI agents will fundamentally change the way businesses operate by proactively assisting employees, handling repetitive tasks, and making intelligent recommendations.
As AI capabilities rapidly evolve, management teams worldwide are experiencing an increasing urgency to integrate AI into their strategic initiatives.
According to Frost & Sullivan’s findings, about 89% of IT and business decision-makers surveyed in late 2023 believe artificial intelligence and machine learning are crucial, very important, or important in achieving business goals revolving around increasing operational efficiency, supporting innovation, and improving customer experience.
A key theme Frost & Sullivan aimed to explore at the AI Tour was understanding and measuring the return on investment (ROI) from AI adoption. “I was grateful that several end-user companies shared their experiences and insights on how AI is delivering value in various ways”, says Yeo, and lists some of the benefits:
● Efficiency and productivity gains: Organisations are leveraging AI to automate repetitive tasks, optimise workflows, and reduce operational costs.
● Enhanced customer experience: AI-driven chatbots, virtual assistants, and personalised recommendations are redefining customer engagement. Companies deploying AI to enhance customer interactions report significant improvements in customer satisfaction scores.
● Revenue growth and innovation: AI is enabling businesses to identify new revenue streams, optimise pricing strategies, and drive innovation.
At the Microsoft AI leadership conference Kenny Yeo explains that he gained valuable insights from Salim Naim, AI Solutions Leader at Microsoft Asia. An example case in point was a case study based on the experiences of Air India.
“A great example for us to examine is Air India’s efforts to elevate customer support. Air India used (Microsoft’s) Azure Open AI Service to develop AI.g, one of the world’s first airline virtual assistants based on generative AI,” says Yeo. “Launched in May 2023, it has handled nearly 4 million customer queries and complements other innovative AI-based services. As Air India has doubled its passenger count, AI.g has handled 97% of queries with full automation and avoided millions of dollars in customer support costs. Generative AI in multiple applications is positioning the airline for continued growth.”
Frost & Sullivan consistently emphasises the importance of aligning AI investments with business objectives. As organisations continue their AI adoption journey, it is critical to approach it as a strategic business transformation rather than just a technology initiative.
As a final thought Kenny Yeo concludes with his takeaway from the Microsoft conference.
“This event reaffirmed that AI is more than just a tool for efficiency – it is a powerful catalyst for business transformation. Successful AI adoption demands a structured roadmap, executive buy-in, and a commitment to continuous learning and adaptation.”
