Generative artificial intelligence (AI) is rapidly establishing itself in organizations. According to IBM, 77% of French companies have already adopted generative AI or plan to do so in the coming year. And for good reason, generative AI solutions such as ChatGPT, powered by machine learning algorithms trained on large datasets, can generate texts, images, and graphics in moments.
The potential use cases for this technology in business are numerous, offering productivity gains and competitive advantages. Generative AI software can accelerate content creation (communication materials, reports, training programs, metadata, etc.), streamline the management of IT requests (tickets), or facilitate HR processes (candidate profile analysis, automating onboarding, etc.).
While the deployment of AI in organizations seems inevitable, the associated costs raise concerns. Adopting generative AI tools involves various expenses: data structuring and preparation, solution development or acquisition, infrastructure setup and maintenance, system integration, employee training, maintenance and support, security and compliance, and testing.
So, how can generative AI adoption create value for businesses? What precautions should be taken to mitigate the risks associated with introducing generative AI? And above all, which use cases should be prioritized to make generative AI a profitable investment for your organization? In this article, Mozzaik answers these questions and provides the keys to anticipate and optimize the return on investment (ROI) of your AI projects.
How to calculate the ROI of AI in business?
Calculating the ROI of generative AI is essential to determine if adopting this technology is a profitable operation for your company.
What is ROI?
Return on Investment (ROI) is an indicator used to compare the amount invested in a project with its return. In other words, ROI tells you whether an initiative is profitable and generates revenue for the organization, for example, by reducing costs or increasing revenue. Calculating the ROI of a Digital Workplace or AI project thus allows you to determine if it benefits your business.
The formula for calculating AI ROI in business
To measure the ROI of an AI project, such as creating a chatbot to answer customer questions, you need to identify and track success indicators, such as cost savings or revenue growth.
Next, to calculate the ROI of your AI initiative, you should use the following formula: ROI = [(Investment Gains – Investment Costs) / Investment Costs] x 100. This will give you a percentage that reflects the return on investment for your project.
A positive percentage, 20% for example, means that the benefits generated by the project exceed the total investment. The project is therefore profitable. Conversely, a negative percentage—say, -5%—reveals that the funds invested in AI deployment were not offset by the resulting gains.