Businesses Struggle to Measure AI's True Value: 5 Expert Strategies for Success

Is AI Even Worth It for Your Business? 5 Expert Tips to Help Prove ROI A recent survey of 600 data leaders by Wakefield Research on behalf of technology specialist Informatica reveals that more than 97% of organizations struggle to demonstrate the business value of generative AI (gen AI). This staggering statistic highlights a pressing concern for businesses: how to measure and prove the return on investment (ROI) of AI projects. The financial impact is substantial. According to a report by MarketsandMarkets, the global AI market is projected to reach $190 billion by 2025, growing at a compound annual growth rate (CAGR) of 38%. However, if businesses cannot demonstrate the value of their AI investments, they risk losing credibility with stakeholders and potentially missing out on significant revenue opportunities. Measuring AI ROI: A Challenge for Businesses Informatica's World Tour event brought together digital leaders to discuss the challenges of measuring AI ROI. "Many business leaders struggle to tell a compelling story about the value of their AI projects," said Mark Samuels, Senior Contributor at ZDNET. "This is not just an issue of technology; it's also a matter of communication and stakeholder engagement." 5 Expert Tips to Help Prove AI ROI To overcome this challenge, businesses can follow these five expert tips: 1. Focus on Business Outcomes: Instead of solely focusing on technical metrics such as accuracy or processing speed, businesses should concentrate on outcomes that directly impact the bottom line, such as increased revenue or reduced costs. 2. Develop a Clear Storyline: Businesses need to develop a clear narrative about how their AI projects are driving value and improving business performance. This requires effective communication and stakeholder engagement. 3. Track Progress Carefully: Regularly tracking key performance indicators (KPIs) and metrics will help businesses measure the impact of their AI investments and make data-driven decisions. 4. Invest in Data-Driven Decision-Making: Businesses should invest in data analytics tools and platforms to support informed decision-making and ensure that AI projects are aligned with business objectives. 5. Engage Stakeholders: Business leaders must engage with stakeholders, including the board of directors, to communicate the value of their AI investments and obtain buy-in for future initiatives. Market Implications and Reactions The market is responding to the challenges posed by measuring AI ROI. "We're seeing a growing demand for solutions that can help businesses measure and demonstrate the value of their AI investments," said an Informatica spokesperson. "Our technology enables organizations to track key metrics and outcomes, providing a clear picture of the business impact." Stakeholder Perspectives Business leaders are recognizing the importance of measuring AI ROI. "As a board member, I want to see tangible evidence that our AI investments are driving value for the company," said a senior executive at a leading technology firm. "We need to develop a clear storyline about how our AI projects are improving business performance and delivering returns." Future Outlook and Next Steps The future of AI is bright, but businesses must address the challenge of measuring ROI. By following these five expert tips, organizations can demonstrate the value of their AI investments and unlock significant revenue opportunities. In conclusion, while the survey results may be daunting, they also highlight an opportunity for businesses to improve their approach to measuring AI ROI. By focusing on business outcomes, developing a clear storyline, tracking progress carefully, investing in data-driven decision-making, and engaging stakeholders, organizations can prove the value of their AI investments and drive growth in the rapidly evolving AI market. *Financial data compiled from Zdnet reporting.*