A comprehensive new approach to measuring returns on generative AI investments has emerged, addressing widespread challenges in quantifying AI’s business impact. According to a KPMG survey cited by VentureBeat’s James Thomason, while 78% of C-suite leaders express confidence in generative AI’s ROI, most companies struggle to measure its actual value.
The article presents a detailed 12-step framework for evaluating AI initiatives, covering everything from strategic alignment to stakeholder communication. The framework, developed through expert consultations across multiple industries, balances traditional financial metrics with qualitative benefits like improved decision-making and customer experience.
A case study of fintech company Drip Capital demonstrates practical implementation, showing how the firm achieved 70% productivity increases through strategic AI deployment and careful measurement of both tangible and intangible returns.