"Most technology requires that many employees in an organization use it in a certain way. AI is different. Its first adopters were ordinary consumers, not businesses. People use AI like a personal assistant in various and individual ways to help them do work (and lots of other things). People want to use it, are going to use it, and are happier when they do. But this kind of use and benefit does not show up on a P and L statement."
"Defining ROI for AI is also hard because while it may improve efficiency, it can reduce billable hours, so the ROI may even appear negative. But AI offers other intangible benefits like happier employees which businesses retain longer. It gets better quality results. It creates the ability to do things that couldn't be done before. All things real but intangible."
"Another intangible: AI can enable predictive analytics which, in turn, leads to preventing legal disputes and the associated costs."
AI's ROI cannot yet be reliably measured with traditional financial metrics because many benefits are intangible and do not appear on profit-and-loss statements. AI adoption often begins with individual users using AI as personal assistants in varied ways, producing individualized productivity gains. Efficiency improvements may paradoxically reduce billable hours, obscuring financial returns. AI delivers softer benefits such as higher employee satisfaction and retention, improved quality of work, and new capabilities previously unavailable. AI-enabled predictive analytics can help prevent legal disputes and associated costs. Avoided costs and intangible gains present measurement challenges but can create real value beyond immediate revenue.
Read at Above the Law
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