Innovate and adapt or die is what the industry is going through today. Staying relevant in the industry as time goes and keeping up with the technologies that are making businesses run easier have become much more important than it was a decade ago.
We live in a age where AI is being used in production. But how to businesses view it and how can they approach calculating the Return on Investment on AI? Let’s take a quick look.
Unlike physical assets, Artificial Intelligence assets grow in its value with time. The value increases because of the amazing self-learning capabilities that AI has. When done right, by the right people, AI could be exponentially beneficial for your business over time. This means, the traditional way of measuring or tracking the ROI is not going to work with AI.
AI is a compounding asset that creates value for companies who make such investments in new technologies early on. The faster a company adapts to AI, the better the results.
CFOs need to learn and build new ROI models to measure the Return on AI (ROA). They will have to measure the impact of AI based on algorithms that are running the systems, the power at which they can operate and also how fast the results can be delivered using these algorithms.
Both the benefits of AI and the costs will only be visible in the future, rather than the present. The results of AI and its impact purely depends on the amount of data your organization has, the type of results you are expecting and also the upfront investment you are ready to make.
Ultimately, the risk of not thinking new and executing these new techniques to run your business efficiently is far greater than the risk of investing in AI.
We believe that in near future, all our operations are going to depend on AI someway or the other. And AI is going to work with people and CFOs to arrive at data driven results faster than any other system you’ve seen before.
"We are fortunate to live at a time where AI is accessible to enhance human capabilities. Realizing the opportunity of AI today is far more important than you might think it is. Just like how automation was important for your business, AI will be your businesses’ new addiction. AI, is changing the world already."
Swaathi Kakarla, Chief Technology Officer
This is a companion discussion topic for the original entry at https://www.skcript.com/svr/10-how-to-calculate-the-roi-of-ai-cfo-guide/