Srikanth Thudumu (Institute Applied Artificial Intelligence and Robotics (IAAIR)) has posted “How to Measure ROI for AI” on SSRN. Here is the abstract:
Return on Investment (ROI) is often used as the primary metric for evaluating Artificial Intelligence (AI) projects. However, conventional ROI calculations tend to focus narrowly on short-term, directly attributable savings while overlooking enabling capabilities, strategic options, and risk reduction. Historical technology shifts such as the automobile, electrification, and the internet reveal that value typically emerges after complementary investments and operational redesign. This working paper explains why conventional ROI lenses can be misleading, distills lessons from past transformations, and proposes a simple “Smart ROI” framework with a practical measurement playbook for organizations.