How do we measure ROI on AI investments?
Define the metric before you build the feature. The most common mistake is deploying AI and then trying to figure out what success looks like. For cost-saving AI (automation, process optimization), measure time saved multiplied by labor cost, minus the AI operating cost.
For revenue-generating AI (personalization, recommendations), measure incremental revenue attributable to the AI feature using A/B tests. For quality-improving AI (fraud detection, content moderation), measure error rate reduction and its downstream financial impact. The key is being honest about attribution - AI rarely works in isolation, so measure the system improvement, not just the model's accuracy score.
This question reflects common advisory themes. It is editorially curated, not sourced from individual conversations.
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