AI projects need to justify their investment. Measuring return requires more than counting hours saved.
Define Value Up Front
- Revenue gains: conversion, retention, new products.
- Cost savings: time, errors, outsourcing.
- Risk reduction: fraud, compliance.
- Quality: customer satisfaction, accuracy.
Establish Baselines
Measure current performance before deployment.
Use Experiments
Compare against control groups where possible; before-and-after comparisons are distorted by other changes.
Count All Costs
- Model and infrastructure costs.
- Development and integration.
- Data preparation.
- Monitoring, maintenance and retraining.
- Human review and oversight.
- Training and change management.
Time Saved Isn't Value Yet
Hours saved create value only if they're used productively. Track what changes as a result.
Watch Leading Indicators
Adoption, usage and user satisfaction predict eventual value.
Report Honestly
Share failures as well as successes; they guide future investment.