No ROI in AI yet? Try these six proven tactics for creating real business value
A growing concern that the artificial intelligence (AI) bubble is about to burst has been sparked by recent reports of low return on investment (ROI) from AI projects. However, Fausto Fleites, vice president of data intelligence at Scotts Miracle-Gro, a leading gardening specialist, believes that with the right approach, businesses can unlock significant value from AI.
According to a report by MIT, only 5% of AI projects deliver value, leaving many organizations wondering if the hype around AI is justified. However, Fleites' experience suggests that this is not necessarily the case. By adopting a tactical approach to AI use cases and focusing on strategic priorities, businesses can create real business value from their AI investments.
Company Background and Context
Scotts Miracle-Gro has been at the forefront of using machine learning and AI to drive business growth. Fleites' team has successfully implemented various AI-powered solutions, including predictive analytics and automated decision-making tools. These initiatives have resulted in significant cost savings and revenue increases for the company.
Fleites attributes the success of these projects to a combination of factors, including:
1. Executive buy-in: Fleites worked closely with senior leadership to ensure that AI projects aligned with strategic priorities.
2. Tactical approach: The team focused on specific use cases where AI could add significant value, rather than trying to implement broad AI solutions.
3. Data quality and governance: Fleites' team ensured that high-quality data was available for AI model training and deployment.
Market Implications and Reactions
The low ROI from AI projects has sparked concerns about the sustainability of the current AI market. However, experts argue that this is not a reflection on the technology itself but rather on how it is being implemented.
"The AI bubble is a myth," says Fleites. "Businesses need to take a more tactical approach to AI adoption and focus on creating real business value from their investments."
Stakeholder Perspectives
Fleites' experience highlights the importance of stakeholder engagement in AI adoption. By working closely with executive teams, data scientists, and other stakeholders, businesses can ensure that AI projects align with strategic priorities and deliver tangible results.
"I believe that AI has the potential to drive significant business value," says Fleites. "However, it requires a thoughtful and tactical approach to implementation."
Future Outlook and Next Steps
As the AI market continues to evolve, businesses must adapt their strategies to unlock real business value from AI investments. Fleites recommends the following six proven tactics for creating real business value:
1. Focus on strategic priorities: Align AI projects with business objectives and key performance indicators (KPIs).
2. Take a tactical approach: Focus on specific use cases where AI can add significant value.
3. Ensure data quality and governance: High-quality data is essential for AI model training and deployment.
4. Develop a robust change management plan: Communicate the benefits of AI to stakeholders and ensure smooth implementation.
5. Monitor and evaluate ROI: Regularly assess the financial impact of AI projects and adjust strategies accordingly.
6. Invest in AI talent development: Develop in-house expertise in AI and machine learning to drive innovation and efficiency.
By adopting these tactics, businesses can unlock significant value from their AI investments and avoid the pitfalls of low ROI. As Fleites notes, "AI is not a bubble โ it's a business opportunity waiting to be seized."
*Financial data compiled from Zdnet reporting.*
