FINAL WORD
cyber incidents , ensuring that they align with regulatory requirements .
João Carvalho , Managing Director of SAP Concur in Southern Europe , Spain , Portugal , Greece , and Türkiye , Middle East , and Africa
Calculating AI ROI more art than science
Nearly one-third of Artificial Intelligence projects may be scrapped by 2025 as costs outpace perceived value , according to recent findings from Gartner . This challenge has led many CEOs to rely on CFOs to determine whether AI initiatives are worth the investment . Determining the return on investment , ROI of AI can often feel like solving a puzzle with missing pieces ,
AI in the workplace is still in an early phase , with few established templates for implementation and success , he adds . While this presents exciting new possibilities , it also complicates how CFOs can define and measure ROI . Here are some tips to help organisations realise AI ’ s potential value :
High standards
Achieving strong returns on AI investments requires maintaining high standards across multiple domains , akin to an Olympic decathlete ’ s multi-event approach . Deloitte reports that top-performing companies excel in data management , results tracking , security , privacy , and governance .
High-quality data fuels AI models , consistent results tracking informs adaptable strategies , and robust security measures ensure data protection and ethical standards .
Early wins
With AI ’ s potential business impact , it is easy to focus on the big picture while overlooking process details . Focusing on early wins can build foundational evidence in an AI journey , justifying continued investment and keeping stakeholders engaged . Expanding successful pilot projects quickly demonstrates value .
Calculating AI ROI remains more art than science , requiring CFOs to balance financial and strategic benefits . Early analysis also enables leaders to align AI insights with broader business goals , helping to justify long-term costs .
This includes determining what infrastructure exists internally for
cybersecurity recovery and whether it can support the organisation in the event of a major breach .
It is important to establish boardlevel accountability for cybersecurity , which must be viewed as a core business concern requiring involvement from senior management and the board of directors . Ensuring that the board is fully aware of the risks and has a direct role in overseeing cybersecurity initiatives helps embed a culture of security throughout the organisation .
Ongoing monitoring of risk factors is essential to maintaining a strong security posture , and such a programme will also work to the organisation ’ s advantage against their competitors .
Cyber threats evolve rapidly , and staying one step ahead requires diligent lifecycle management of IT systems , security protocols , and risk . Organisations must continuously assess where they stand in terms of compliance and risk management , constantly revisiting and refining their processes .
Companies need to actively embrace a lifecycle management approach , understand , plan , test , and repeat to ensure they are prepared when a cyber incident occurs , but more importantly that they can recover quickly and demonstrate the resilience that regulations such as DORA seek to instil . •
Measurement metrics
AI benefits vary , so standardised ROI measurements may not always apply . Some may not appear on traditional spreadsheets or in key performance indicators , KPIs , making ROI assessments complex for finance teams . Beyond core financial metrics , factors like quality improvements , innovation , and compliance should be considered .
A report by IDC reveals that it typically takes organisations around 14 months postdeployment to achieve AI ROI , underscoring the importance of patience and tailored metrics .
Human aspect of AI ROI
Defining AI ROI can be challenging , particularly with talent gaps . With 52 % of companies citing a lack of skilled workers , AI projects demand investment in both technology and workforce training . AI adoption can help reduce training costs and attract young professionals eager to work with advanced tools .
Partnering with experts to understand the ROI equation can help you calculate the best mix for your organisation , wherever you are on the AI journey .
84 % of financial organisations have been affected by a breach involving a fourth party .
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