Businesses want to employ artificial intelligence (AI) as a powerful tool, but selecting the best AI projects can be challenging. Seeing whether these efforts will truly yield returns is a challenge for many businesses. Businesses might quit sponsoring these efforts if AI does not demonstrate rapid success. That is why it is important to carefully choose AI projects and track their progress.
Some AI systems have caused problems in the past. A good example is Air Canada’s chatbot. It told a passenger he could get a refund, but later, the company refused to honor it. After a legal case, Air Canada had to follow through with the promise. However, the company removed the chatbot. Stories like this make business leaders unsure about investing in AI.
Even with these concerns, most companies still want to spend money on AI. Many financial executives, such as CFOs, are at a loss as to where to begin. They fear that funding AI initiatives that yield no tangible results will be a waste of money. Technology leaders, or CIOs, must convince them that AI is worthwhile. But it’s difficult to demonstrate AI’s worth. Clear objectives, precise data, and teamwork are necessary—elements that many businesses find difficult to achieve.
60% of CIOs, according to studies, think AI is worth the investment if it boosts revenue. Similar numbers believe that investing is justified solely by the time savings. Only one-third of them, though, really keep track of these advantages. This demonstrates how difficult it is to gauge the actual worth of AI.
Despite significant advancements, AI technology still faces numerous obstacles. Errors made by certain AI systems cost businesses money. Some are highly costly to set up. As a result, a lot of corporate executives are delaying their investments in AI to determine whether they are worthwhile. 42% of businesses stated in 2024 that they had not yet seen tangible outcomes from their AI initiatives.
Companies must select projects that support their business objectives if they want to benefit the most from AI. “How can AI help us improve our products?” is a better question to ask than “spending money without a plan.” Can it speed up our work? Can it help us make smarter decisions? It is also important to choose AI solutions that different departments can use easily.
One way to choose AI projects is by looking at how AI can give a company an advantage over competitors.While some companies employ AI to make better products, others concentrate on reducing costs. Business executives can determine where AI will be most helpful by knowing the primary objective of the organization.
Some AI initiatives yield outcomes more quickly than others. AI has the potential to forecast consumer purchasing patterns, maintain machine functionality, and enhance customer service. These fields typically offer high-quality data and precise metrics for success. Businesses can quickly realize AI’s value if it can boost revenue, cut down on errors, or save time.
CFOs, who are in charge of business budgets, are interested in AI initiatives that enhance financial processes and adhere to regulations. Making the correct project choice is only one step, though; businesses also need a mechanism to gauge performance. This entails establishing precise objectives and experimenting before implementing AI over the entire organization.
In order to ensure the success of an AI project, companies should begin by establishing key performance indicators (KPIs). These are quantifiable objectives, such as decreasing client wait times or streamlining procedures. When using AI on a big scale, companies can identify issues early and address them by conducting a modest test project.
CIOs must clearly communicate the advantages of AI in order to win over CFOs and other decision-makers. “Instead of using technical words, they should show how AI will save money or bring in more revenue. Showing real-world success stories and early results can also help build confidence.
Getting all departments involved is important for a smooth AI rollout.Collaboration between business and IT departments reduces risks and delays. Small projects at first, learning from early outcomes, and improving as you go can help businesses reap immediate rewards.
One issue with AI is that return on investment (ROI) is difficult to quantify. Because the advantages of AI may not be immediately apparent, companies should evaluate their performance both before and after implementing AI. They can determine whether AI is having an impact in this way.
In order to persuade CFOs, CIOs must present a compelling business case. Clearly demonstrating how AI will increase productivity, reduce expenses, or create new revenue is necessary to do this. A thorough plan with deadlines and anticipated outcomes should also be developed.
CFOs may be more interested in AI projects that lower risks. Establishing quality control procedures and ensuring AI aligns with the business’s financial goals are part of this. The long-term advantages of AI should also be discussed by CIOs, who should demonstrate how it may support business expansion and competitiveness.
AI is revolutionizing company operations, but careful preparation is essential for success. Businesses must choose the correct projects, establish precise objectives, and track their progress. They can use this to transform AI from an expensive experiment into a useful tool.”
