Business leaders are exploring opportunities to monetize AI and increase the ROI. It is challenging to measure the ROI from AI adoption because the metrics are variable.
The implementation of Artificial Intelligence (AI) and its application in enterprises might be succeeding in multiple ways. But there are myriad risks in using AI as a tool, and it has the potential to fail in miserably if not used optimally. It will be a challenging task for the CIOs to prove to the stakeholders that they are making profits through AI adoption, without measurable ROI.
The CIOs should consider designing and implementing strategies to measure ROI from AI implementation. Calculating the return on investment will help the CIOs in evaluating its impact on the organization’s financial performance. Here are a few strategies to calculate the ROI of AI implementation.
Key considerations to calculate accurate ROI of AI implementation
Consider all the hidden costs
There are multiple hidden costs businesses have incurred while implementing AI in the work process, which might have a tremendous influence on the revenue. It is essential to consider all the hidden costs while accurately calculating the AI adoption ROI.
Gather all the necessary accurate data
Gathering accurate and relevant data is necessary for enterprises to calculate the correct ROI. Collecting, preparing, and labeling the data; appropriately will assist the teams in maintaining well-structured and cataloged data.
Pay minute attention to licenses and tools agreements
Implementing the right AI tools will revolutionize the process, but the AI implementation team should pay thorough attention to the licensing and tools agreements to calculate the ROI. This is because the AI tools will require regular maintenance and upgrading, which adds to the investment cost eventually. Hence while calculating the ROI of AI adoption, enterprises should consider the terms and conditions in the licensing and vendor agreements.
A data scientist can help calculate the right ROI
A team of data scientists can assist in finding all the required information from the vast databases and knit it together to find the right ROI for AI implementation.
Ways to measure the right ROI of AI
Implementing and maintaining AI is a significant investment for every business which will help to increase the revenue. While calculating the ROI for AI adoption, enterprises need to consider the cost of the teams, licenses, security, platform, algorithm, framework, data, and other costs.
The most critical element in ROI measurement for AI is the financial savings it accrues.
Implementation of AI can substantially minimize the operational cost of businesses, which needs to be considered.
Accomplishments of the goals and KPIs
Measuring the accomplishments of the goals and KPIs of the AI implementation is essential to calculating the ROI. Enterprises should consider all the financial perspectives of the goals and KPIs achieved through the adoption of AI.
Other benefits and future profits
It is not necessary that the implementation of AI will only help to make more revenue. There are other and more tremendous impacts on productivity, product quality, and client satisfaction which are add-on benefits that might eventually make revenue. The enterprises need to consider all the revenue streams that AI would open in the future.