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Stanford University’s latest AI Index Report reveals a significant increase in AI adoption among businesses.
Now 78% of organizations use AI, up from 55% a year ago. At the same time, the cost of using AI has dropped, becoming 280 times cheaper in less than two years.
More Businesses Than Ever Are Using AI
The latest report, now in its eighth year, shows a turning point for AI in business.
The number of organizations using generative AI in at least one business area more than doubled, from 33% in 2023 to 71% in 2024.
“Business is all in on AI, fueling record investment and usage,” the report states.
In 2024, U.S. companies invested $109.1 billion in AI, nearly 12 times more than China’s $9.3 billion and 24 times more than the U.K.’s $4.5 billion.
AI Costs Are Dropping
One reason more companies are using AI is that it’s becoming increasingly affordable. The report indicates that the cost of running AI queries has decreased significantly.
The report highlights:
“The cost of querying an AI model that performs like GPT-3.5 dropped from $20.00 per million tokens in November 2022 to just $0.07 per million tokens by October 2024.”
That’s 280 times cheaper in about 18 months.
Prices have dropped between 9 and 900 times per year, depending on the use case for AI. This makes powerful AI tools much more affordable for companies of all sizes.
Regional Differences and Business Impact
Different regions are adopting AI at different rates.
North America remains the leader, but Greater China has shown the most significant jump, with a 27-point increase in company AI use. Europe was next with a 23-point increase.
For marketing teams, AI is starting to show financial benefits. About 71% of companies using AI in marketing and sales report increased revenue, although most say the increase is less than 5%.
This suggests that while AI is helping, most companies are still figuring out how to use it best.
What This Means for Marketers & SEO Pros
These findings matter for several reasons:
- The drop in AI costs means powerful tools are getting more affordable, even for smaller teams.
- Companies report that AI boosts productivity and helps bridge skill gaps. This can enable you to accomplish more with limited resources.
- The report notes that “smaller models drive stronger performance.” Today’s models are 142 times smaller than the 2022 versions, so more AI tools can run on regular computers.
The 2025 AI Index Report clarifies that AI is no longer an experimental technology, it’s a mainstream business tool. For marketers, the question isn’t whether to use AI, but how to utilize it effectively to stay ahead of competitors.
For more insights, see the full report.
Featured Image: kanlaya wanon/Shutterstock
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