Assessing the ROI of an AI initiative

Artificial Intelligence (AI) Strategy

Vidhi Chugh

AI strategist and ethicist

Returns come from - revenue

Direct revenue stream
- New market segment
- Influx of sales
Example: Alexa

Example: Alexa

Indirect revenue stream
- May not sell directly
- Support existing processes
Example: Netflix

Example: Netflix

Returns come from - cost savings

Generating revenue and controlling costs

Generating revenue and controlling costs
Detect anomalies
Monetary savings including brand damage and legal fees

Detect anomalies

Monetary savings including brand damage and legal fees

Returns come from - operational efficiency

Minimize redundant processes

Direct
- Minimize redundant processes
Indirect
- Freeing up time for challenging tasks

Example
- AI-driven HR systems
- Reduce recruitment costs and time

Returns come from - time optimization

Faster time to market -> quicker returns
Example: AI-driven supply chain management
Time is money!

Faster time to market

High-ROI projects

Priortizing innovation -> gain competitive edge
Identify viable projects

Image of a person using a pen and paper, recording viable projects for AI

Scalable machine learning systems

Scalable machine learning systems
Secure data pipelines

Challenges with assessing ROI

AI is exciting; assessing ROI is challenging!

Multi-year journey

Annual payback estimation
Unforeseen challenges affect timelines and in turn ROI

Iterative projects

Changing scope

ROI evident during data discovery and exploration
Definitive during PoC

Investments associated with AI projects

Infrastructure expense
- Hardware, software, licenses

Building and upskilling teams

Building and upskilling teams

Effective data management

Effective data management

Let's practice!

Artificial Intelligence (AI) Strategy

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