Struggle to find AI ROI
Most companies, from the Fortune 500 to the scrappiest startup, are now investing in AI—whether it’s a sophisticated machine learning model or a simple generative AI co-pilot. Yet, measurable Return on Investment (ROI) remains frustratingly out of reach. The facts show that most companies struggle to find AI ROI.
- 78% of organizations will use AI this year and have at least one AI initiative.
- 72% of the C-suite say their company has faced at least one significant challenge
- 39% of companies cite strategy, adoption, and scaling issues as their most significant roadblocks
- Only 25% of AI initiatives deliver ROI; only 16% scale.
Why is AI not generating ROI?
If AI is such a game-changer, why is it that most companies aren’t winning? Here are the key reasons companies don’t see AI ROI, along with the facts that back them up.
1. Risk of being left behind, rather than a return, motivates decision-making.
Fear Of Missing Out (FOMO) is the feeling of anxiety and worry that others experience something worth having before you do. While it may seem like a short-sighted reason to jump on the bandwagon, it is a primary reason decision-makers at most companies pursue AI and end up perplexed. Here’s why.
- 64% of CEOs acknowledge that the risk of falling behind drives investment
- 59% of CEOs admit their organization struggles to balance funding for operations.
- 43% of employees and 44% of leaders say executives at their company talk a big game about AI but can’t deliver.
2. Lack of communication with employees
Whether it’s unease about describing AI use to employees or the influence an AI vendor exerts on company leaders, the goals, strategy, and execution of AI in a company are not adequately explained to the people who work there. That isn’t good for business, company culture, or employee trust in its leaders.
- 71% of the C-suite say AI applications are being created in a silo at their company.
- 68% of C-suite say AI adoption has caused division at their company.
- 34% of the C-suite admit to massive disappointment with AI adoption at their company.
- Only 15% of U.S. employees report that their workplaces communicate a clear AI strategy.
3. Not accounting for infrastructure and costs adds significantly to the struggle to find AI ROI
AI is not free. AI tools can cost money. Moreover, the infrastructure to operate it and the data to measure whether it is working or showing improvement over prior efforts are not accounted for. An AI chatbot development company can help businesses to develop an integrated system to communicate with their audience and boost ROI. So, how do you know if AI is working? Or if AI is doing its job? Consider these facts.
- 80% of AI projects with derailed outcomes report data issues.
- Companies underestimate AI deployment costs and infrastructure needs by as much as 10x, leading to scalability issues.
- 35% of companies cite a lack of skilled talent and data literacy as a significant barrier to getting value from AI.
Without an ROI, AI is just an expensive toy.
What good is AI if it doesn’t show a return? Being open about the use of AI with employees, the tasks it will do, the tools that will be used, and the process for measuring can change the outcome. Why not take the first step and start with an AI ROI assessment? Go down the right path, put a plan in place to execute AI with a feedback loop, and measure success. So, it doesn’t have to be such a struggle to find the return.
