Measuring AI Value
AI & ML: lesson 32 of 32
Baseline first, then track value against cost until you scale, pivot or stop.
Lesson 32 of 32 · 5 min
Measuring AI Value
Step 1 of 10
Before anything is built, measure the baseline: 14 minutes per claim, 8,000 claims a month. No baseline, no ROI.
The Idea
Measure the process before AI touches it: time per task, error rate, cost. Pick KPIs that tie to money or customers, including softer ones such as satisfaction. ROI counts every cost (build, run, people) and is recalculated as usage and prices change. Decide at fixed reviews from leading indicators like adoption, because ROI is the last number to turn.
Real-World Example
A supermarket installing self-checkout times its queues before and after. If six months on the queues are no shorter, it pulls the machines from half its stores rather than waiting for the lease to run out.
The Tradeoff
Strict numbers can kill a slow starter that would have paid off; loose ones keep failing projects alive. Set the review dates and the scale, pivot and stop thresholds before launch, while nobody is attached yet.
Your turn
Put the steps in the right order.
- Decide to scale, pivot or stop at the review
- Measure the baseline before launch
- Track adoption and value against cost every month
- Set the KPIs and the threshold for each decision
Mini quiz
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