Module 725 minutes
Measuring ROI and Impact
Measure and demonstrate AI value. Track metrics, calculate ROI, communicate impact to stakeholders.
roimetricsmeasurementvalue-demonstration
Learning Objectives
- ✓Define AI success metrics
- ✓Calculate and track ROI
- ✓Measure business impact
- ✓Communicate value to stakeholders
Measure What Matters
If you can't measure it, you can't improve it—or justify it.
Metrics Framework
Input Metrics:
- Investment (dollars, time)
- Resources allocated
- Training completed
Output Metrics:
- AI systems deployed
- Users trained
- Processes automated
Outcome Metrics:
- Cost savings
- Revenue impact
- Time saved
- Quality improvements
- Customer satisfaction
Focus on outcomes, not just outputs.
ROI Calculation
Costs:
- Technology (licenses, infrastructure)
- Labor (development, operations)
- Training and change management
- Ongoing maintenance
Benefits:
- Cost savings (efficiency gains)
- Revenue increase (new capabilities)
- Risk reduction (better decisions)
- Strategic value (competitiveness)
ROI = (Total Benefits - Total Costs) / Total Costs × 100%
Measuring Impact
Productivity:
- Hours saved per week
- Tasks automated
- Faster decision-making
Quality:
- Error rate reduction
- Consistency improvements
- Customer satisfaction
Innovation:
- New products/features
- Market opportunities
- Competitive advantage
Stakeholder Reporting
Executive Dashboard:
- High-level KPIs
- Trend over time
- vs. targets
- Financial impact
Department Reports:
- Specific use cases
- Adoption metrics
- Success stories
- Challenges and needs
Attribution Challenges
AI often contributes to outcomes, not solely causes them.
Solutions:
- A/B testing where possible
- Before/after comparisons
- Control groups
- Conservative estimates
- Qualitative + quantitative
Key Takeaways
- →Focus on business outcomes, not just AI outputs
- →Calculate ROI conservatively—better to over-deliver
- →Track leading indicators to predict success
- →Use both quantitative metrics and qualitative stories
- →Report regularly to maintain stakeholder buy-in
Practice Exercises
Apply what you've learned with these practical exercises:
- 1.Define KPIs for AI initiatives
- 2.Calculate ROI for one project
- 3.Create executive dashboard
- 4.Develop stakeholder communication plan