What if the real value of AI isn’t in the technology itself, but in the pain points and problems it solves for business? That’s the question at the heart of this episode of Where AI Works, which features an iconic company that’s been at the forefront of digital transformation for decades.

Host Serguei Netessine is joined by Tereza Nemessanyi, Worldwide Director of Private Equity & Venture Capital Partnerships at Microsoft, to explore the varied, experimental approaches many of her clients are taking in an effort to monetize their AI offerings. As Tereza points out, AI deployment is still in its early stages, and success in this space requires a culture that supports rapid iteration, short sprints, and a willingness to explore both vertical and horizontal applications to see what sticks. She believes the biggest opportunities lie in high “cost-to-serve” areas — pain points where AI can dramatically reduce effort or complexity. In other words, AI isn’t a destination — it’s a journey, and the smartest companies are already well down the road.

Talking Points:

• AI Is Being Embedded Into Everyday Tools: 
• Generative AI is showing up in the software people already use—like Microsoft Word, Excel, and Outlook—making it frictionless for users to adopt.
• 
  
• Horizontal Applications Are Leading AI Adoption: 
• The biggest wins are coming from general-use AI tools that cut across industries, rather than highly specialized vertical applications.
• 
  
• GitHub Copilot Is Transforming Developer Productivity: 
• As a standout example, Copilot is helping developers code faster and smarter, showcasing how AI can be a true productivity partner.

Episode Highlights:

5:21 - Tereza lays out the three main ways in which AI is changing the value proposition for Microsoft investors, clients, and collaborators.

10:30 - Tereza shares examples of horizontal and vertical AI integration efforts, and how they can both connect to a potential ROI. 

19:05 - Tereza discusses the types of blockers she's seen her clients encounter while trying to monetize AT effectively.