Ever feel like your team’s maxed out, but the work just keeps coming?
You’re not alone. According to Microsoft’s new 2025 Work Trend Index, 80% of workers (leaders included) say they don’t have enough time or energy to do their jobs properly. Productivity demands are going up, but capacity isn’t.
The solution? Not working harder. Working smarter – with AI.
This week, I’m diving into Microsoft’s recent global study, “The Year the Frontier Firm Is Born“. It’s packed with insights about how the world’s most forward-thinking organisations are redesigning work. And more importantly, what we can learn from it.
So What’s This All About?
Microsoft analysed data from 31,000 workers across 31 countries (plus trillions of signals from Microsoft 365 and LinkedIn) to understand how AI is reshaping work.
The headline? We’re entering the age of the Frontier Firm – businesses that blend human expertise with AI-powered agents to scale faster, make better decisions, and free people up to focus on work that really matters.
This article will walk you through:
- What a Frontier Firm looks like
- Why AI isn’t just for the tech giants
- What practical steps your business can take to thrive in this new era
Why Should Business Leaders Care?
Because this isn’t a distant future. It’s already happening.
82% of leaders say 2025 is a pivotal year to rethink strategy and operations.
86% believe AI is essential to staying competitive.
This isn’t about robots taking over. It’s about giving your team the tools to do more meaningful work and reclaim their focus.
So What Is a Frontier Firm?
Microsoft defines a Frontier Firm as an organisation that:
- Uses AI agents as “digital colleagues”
- Prioritises skills over roles
- Redesigns workflows (not just automates them)
- Empowers people to become “agent bosses” – managing teams of AI tools to extend their impact
And here’s a headline for you: 71% of people at Frontier Firms say their company is thriving, compared to just 37% globally. That’s a huge performance gap.
These firms aren’t just using AI to cut costs – they’re using it to build capacity, attract talent, and move faster than the competition.
How Does This Apply to Your Business?
Whether you’re a sole-trader or leading a team of 500, here are four key takeaways:
1. Stop Thinking of AI as a Tool. Start Thinking of it as a Team Member
AI isn’t just another piece of software. It’s a new kind of colleague – available 24/7, immune to burnout, and brilliant at handling repetitive, complex, or time-consuming tasks.
Think customer queries, research, reports, content creation, scheduling, summarising meetings… the list goes on.
2. Shift from Roles to Skills
The most successful businesses are moving away from rigid job descriptions. They’re focusing instead on building adaptable, AI-literate teams who can delegate effectively to digital tools and learn on the go.
AI skills are now the most in-demand on LinkedIn. And 76% of employees say they’d stay longer at a company that invests in their development.
3. Leaders Need to Lead Differently
In an AI-powered workplace, leaders aren’t just taskmasters – they’re ‘clarity-creators’. They coach rather than command, prioritise what matters, and help their teams use AI to reduce overload.
4. Get Beyond the Pilot Stage
According to the report, the time for small-scale AI pilots is over. Frontier Firms are scaling AI organisation-wide and seeing dramatic results. If you’ve started experimenting, now’s the time to go bigger.
Microsoft recommends every leader set their “human-agent ratio” – figuring out where agents can add value, and where the human-input remains essential. That balance will be different for every business. But getting it right is key to unlocking value.
Final Thought: Don’t Wait For the ‘Right Time.’ – That time is NOW
Reading this, you might think: “This all sounds great, but where do I even start?”
That’s exactly what we help with.
At South West AI Solutions, we make AI adoption simple, human-first, and tailored to your business. Whether you’re completely new or already experimenting, we can help you:
- Identify where AI can have the biggest impact
- Upskill your team in practical, non-scary ways
- Build governance and guardrails to ensure safe, responsible use
- Create your own “AI strategy” – even if you don’t know what that looks like yet
Want to Be Ahead of the Curve?
If you’re ready to move from AI curiosity to real business impact, we’d love to help you on that journey.
👉 Connect with me on LinkedIn and let’s talk, or book a FREE 1:1 Introductory Session to start your Frontier Firm journey.
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Matt Greaves
CEO and Founder
South West AI Solutions