Yes, I know that many organizations use authentication with Active Directory.
I always like to point out some clarifications when talking about single sign on.
First, the Moodle LDAP authentication plugin does not necessarily accommodate true SSO without doing a bunch of extra setup and work. Just basic LDAP authentication works pretty well, where users would use the same username and password but it is not SSO in the sense that they still have to enter their username and password. If you are fine with users having to enter their LDAP username and password into Moodle, then that is fine (but I don't consider it true SSO)
The Moodle LDAP auth plugin can be used to provide true SSO capability with AD, but in my opinion it is a bunch of extra hard work with varying degrees of success.
I like to recommend using the ADFS (Active Directory Federation Services) component from Microsoft. However if you aren't already using this and have it set up, it might not be an option. However if you are using ADFS, you can then use the SAML2 auth plugin to provide true SSO capability to users.
Also, a consideration for LDAP authentication, is that many organizations have security policies or prohibitions on allowing external applications connect to the organizations' LDAP/AD services. In order for the Moodle LDAP auth plugin to work, it needs to "talk" to your AD server and your server/network team usually need to be ok with this and open firewalls to allow it.
I hope that helps you out!
Jamie