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Artificial Intelligence: Wrangling AI to Achieve Positive ROI
AI is in. Just about every company says that they see value in the technology — 90 percent according to a survey by MIT Sloan Management Review and Boston Consulting Group.
Companies have jumped in to apply AI to their business, but the ROI coming out of those projects are lackluster. 70 percent say that there have been no or minimal gains achieved. Actually 30 percent say that they’ve seen no gain.
David Kiron, executive editor at Sloan Management Review, said that “while some companies have clearly figured out how to be successful, most companies have a hard time generating value with AI.”
The Sloan report suggests these tips for best aligning AI with the goal of achieving positive ROI:
- AI project goals need to be grounded and aligned with overall business strategy.
- AI projects associated with business transformation and collaboration tend to have greater positive impact.
- AI frequently is the source for achieving higher revenues but less so for cost reduction. Expand the success measurement of projects to account for revenue as well as cost savings. Since the goal is higher ROI, maybe this is creative accounting and a little bit of a cheat, but doing so identifies additional positive outcomes that AI can achieve beyond just dollar savings.
- AI projects need to offer tools to as many users as possible rather than confining access only to AI-trained and savvy users.
- Avoid focusing on using the coolest AI techniques and instead look at which AI methods are best fits for your business needs. The report found that a corollary of this is that AI projects led by CEOs tend to drive greater value than those led by CIOs.
