As organisations worldwide navigate the next wave of workplace transformation, a new report has uncovered the emergence of a new kind of enterprise, the Frontier Firm.

According to the report by Microsoft, these businesses operate with intelligence on demand, leveraging hybrid human-agent teams to maximise efficiency and innovation. The fifth annual Work Trend Index (WTI) study which was conducted in partnership with LinkedIn, examines insights from 31,000 professionals across 31 countries, alongside LinkedIn Economic Graph data and trillions of aggregated signals from e-mails, meetings, and chats within Microsoft 365.

The report titled “2025: The Year the Frontier Firm Is Born”, established that AI has fundamentally altered the equation of workforce capacity. It indicates that intelligence is no longer restricted by headcount or expertise, and is now abundant, affordable, and scalable.

AI potential

As economic pressures mount, the report emphasises the need for organisations to harness AI’s potential to bridge the widening capacity gap between business demands and human limitations.

Phyllis Migwi, Country Manager, Microsoft Kenya told journalists that business leaders have increasingly turned to digital labour to enhance workforce capabilities, with 82 per cent expecting to leverage AI-driven solutions within the next 12 to 18 months. Kenya is ranked 6th in Africa for AI readiness, according to the 2024 Oxford Insights AI Readiness Index, with AI adoption growing in sectors such as agriculture, healthcare, education, and public service delivery.

Migwi noted that the government has developed its first national AI and emerging technology strategy, envisioning the country as the leading AI hub for model innovation, driving sustainable development, economic growth, and social inclusion while positioning itself as an AI research and application leader in Africa.