Who is accountable for AI ROI?

What is the purpose of this article?

This article enables a discussion about: AI ROI Accountability and metrics

The audience for this article includes: Investors, Boards of Directors, CEOs, and C-Suite. This article applies to all companies, ranging from pre-revenue through to long established global companies.

This article does not provide tax, legal or financial advice.  Your next steps must be based on your own research and fact-based analysis using current and relevant information.

AI did not write this article.  100% human written.

You can download a PDF of this article from: Who is accountable for AI ROI

What are the critical learnings in this article?

  • Most companies produce poor financial returns.1 It seems like companies are using the same investment management process for AI as they do for other investments.
  • What are the metrics for AI benefits and costs? What are the targets and actual results?
  • Who has accountability for achieving the targets?
  • Does your AI strategy include ROI and accountability?

What are your AI benefits?

AI Benefits could include:

  • Customer impact such as: retention, customer acquisition costs, life-time customer profitability, net promotor score, increase in the number of customers, etc.,
  • Internal impact such as: employee retention, employee satisfaction, process costs, process quality etc.

 What might be AI costs?

AI costs could include:

  • retraining employees,
  • the people (employees and others) to develop, integrate, maintain and constantly enhance AI,
  • the cybersecurity, audit, and compliance reporting,
  • hardware and software costs, cloud computing costs, etc.,

 What is your ROI on your AI investment?

  • What are the metrics for AI benefits? What are the targets and actual results?
  • What are the metrics for AI costs? What are the targets and actual results?
  • Who has accountability for achieving the targets?

How do companies manage their ROI on AI investments?

  • Most companies produce poor financial returns.1 It seems like companies are using the same investment management process for AI as they do for other investments.

 What are your next steps?

  • Define the words/concepts you’re using, in a glossary. I’ve seen major confusion when the same words mean different things to different people.
  • Assess your company’s investment management process. Are the processes for metrics, targets, and actual results working? Have accountabilities for targets and results been assigned?
  • Make any required changes to your company’s investment management process.
  • Include AI investments as part of your company’s investment management process.
  • Ensure that any AI strategy includes ROI and accountability.

Footnotes

1 Your company will fail. Koor and Associates

https://koorandassociates.org/avoiding-business-failure/your-company-will-fail-v1/