Unlocking AI's ROI: How to justify the investment

Date:
Mon, 16 Dec 2024 15:20:57 +0000

Description:
Is your AI investment paying off? Learn how to measure, optimize, and
maximize GenAI's ROI for tangible business results.

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Worldwide, Generative Artificial Intelligence (GenAI) is transforming industries, from the way we work to how organizations respond to challenges. While executives are exploring opportunities to use generative AI , many organizations continue to struggle to identify the return on investment (ROI) for GenAI solutions.

In fact, Unisys recent survey of 250 business executives found that 71% of organizations do not effectively measure the ROI for GenAI. With this realization, organizations have an opportunity to implement practices to better evaluate and understand the costs associated with GenAI, capitalize on its workplace capabilities and identify areas where cost savings are possible to better fuel future success. Understanding the upfront costs

The first step to realizing GenAI's true ROI is remembering that while this technology holds great potential to enhance business outcomes, it is not a magical solution that can manufacture instant results. Rather, organizations should treat GenAI like a sophisticated tool that can drive substantial
growth to a businesss bottom lineand one that should come with clear cost benefits.

However, these cost benefits are only as good as the effort and intention behind them. Executives need to work with department heads to pinpoint clear, concrete use cases where GenAI could have the most impact. Once the best business use cases have been agreed on, several crucial steps need to be
taken before GenAI is even deployed.

The first step, and possibly one of the most important, is effectively preparing data. This involves collecting, cleaning and structuring data to optimize it for AI algorithms. By taking inventory of data sources and documenting formats, structures and storage locations, companies can remove outdated, inaccurate data that could impede AI outputs.

Next, it is essential to establish robust data governance policies to
maintain data quality. This can be achieved by setting up validation rules, data archiving protocols and ongoing monitoring . This also includes allocating additional resources to IT infrastructures to help ensure a smooth integration of AI solutions.

Finally, organizational leaders need to direct resources to train staff and help employees use AI effectively and responsibly. It is not enough to make these tools available and expect employees to understand how to use them. It takes time and effort to use GenAI effectively and to get the best outputs possible. Enhancing capabilities

These initial steps may seem daunting, but once addressed, GenAI can expand your organizations capabilities beyond what was once considered possible.

For example, GenAI can empower decision making, stimulate innovation and make deep inroads into marketing, sales and R&D initiatives. It can also help organizations anticipate market shifts, adapt to changing customer
preferences and optimize supply chains.

The effects of GenAI can be seen across industries. In finance, it is reshaping customer-centric services, simplifying tax preparation and
providing effective digital assistants that serve as financial advisors. In healthcare, GenAI can enhance personalized care and accelerate drug
discovery, helping to save more lives and improve everyones quality of life. In the entertainment industry, GenAI can create interactive storytelling experiences that captivate audiences.

We have yet to see how this technology will truly transform businesses, but one thing is for sure organizations that capitalize on these innovations
will set themselves apart as clear market leaders. Identifying cost saving opportunities

With the power of AI, routine tasks and processes can be made easier, helping organizations cut costs. However, to do so effectively, leaders must pay
close attention to which areas this technology should be applied.

For example, GenAI can learn to perform tasks to free up employees time so they can focus on more strategic initiatives. Additionally, GenAI can be leveraged across various channels such as web, mobile, voice and social platforms to quickly understand and respond to customer queries and
requests, allowing employees to focus on more complex tasks.

AI can also be invaluable for identifying internal inefficiencies and helping to develop process improvements, leading to smoother operations, as well as a competitive edge in service delivery. Through intelligent data processing, AI can take internal data insights a step further, pulling information to
analyze team performance and opportunities for improvement and providing actionable insights.

Justifying AI investments demands a thorough ROI analysis that considers upfront costs, client benefits, and internal efficiencies. To maximize its value, organizations must set a clear ROI framework that supports overall business objectives. When taking this approach, leaders will not only justify the initial investment but also position their business for long-term success in an increasingly competitive market.

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This article was produced as part of TechRadarPro's Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro



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Link to news story: https://www.techradar.com/pro/unlocking-ais-roi-how-to-justify-the-investment


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