ROI (Return on Investment)
Also known as: AI ROI, Return on AI Investment, AI Value Measurement
In one sentence
The measure of value gained from AI investments compared to their costs. In AI, this includes time saved, quality improvements, revenue increases, and cost reductions versus implementation and ongoing expenses.
Explain like I'm 12
If you spend $100 on something and it helps you earn or save $300, your ROI is good. With AI, you're measuring whether the money and time you put in gives you enough benefits back to be worth it.
In context
A company considering ChatGPT Plus for their team would calculate ROI by comparing the $20/month per user cost against hours saved on writing, research, and analysis. A marketing team might measure AI image generation ROI by comparing tool costs to previous stock photo expenses and designer time.