Solving the ROI Puzzle: How to Measure and Maximize AI Returns

In the rapidly evolving world of finance, artificial intelligence (AI) stands as a beacon of transformative potential. It is evident the intricate puzzle that it presents to CFOs—those tasked with quantifying the elusive value AI brings. As AI reshapes industries, the pressure mounts to define and maximize its return on investment (ROI) effectively.

The AI Puzzle

Navigating AI deployment without all the pieces in place can feel like a challenge. The global AI market is on an upward trajectory, inspiring confidence and urgency among finance leaders. The 2024 CFO Insights survey reveals a significant leap: 51% of CFOs have embraced AI, a stark rise from just 15% in August 2023. Despite this enthusiasm, 58% of finance leaders admit limited understanding of AI in their domain. This raises a pivotal question: How are companies ensuring their investments are translating into tangible returns?

The ROI journey with AI is anything but linear. Some experiments herald massive success, while others undercut expectations. Gartner forecasts a scenario by 2025 where costs could overshadow returns, affecting 90% of AI projects. Yet Deloitte stands by its findings that firms are realizing strategic gains through AI-driven efficiency and innovation. This contrast begs clarity: What distinguishes top performers in leveraging AI?

Navigating ROI Challenges: The Path Forward

Defining value in AI projects is a nuanced task. As Kunwar Chadha, a seasoned finance leader, notes, metrics like user acquisition, engagement, feedback, and productivity gains underscore long-term financial health. The fusion of art and science in ROI measurement cannot be overstated. Beyond numbers, it's vital to grasp non-financial impacts, such as increased strategic focus and innovation resulting from AI adoption. Guy Melamed, CFO at Varonis, highlights the value of automating routine tasks, enhancing job satisfaction, and driving engagement.

Top Performers’ Blueprint: Achieving AI Success

SAP Concur champions a holistic approach seen in top performers who excel through robust data management, iterative tracking, and steadfast adherence to security and ethics. These businesses skillfully balance skill, commitment, and momentum—where 92% of large firms report positive AI ROI.

Beginning with small, impactful wins before scaling is crucial. Successful experiments call for swift deployment and comprehensive ROI analyses. McKinsey identifies customer operations, marketing, software engineering, and R&D as instrumental in unlocking AI’s potential.

Evolving Beyond the Norm: Your Success Template

Expanding your ROI framework to include quality improvement, innovation, compliance, and brand reputation is vital. User adoption, training, and change management are critical for successful implementation.

AI’s potential extends far beyond immediate gains. Deloitte encourages the move from narrow efficiencies to strategic differentiation, empowering teams to harness generative AI for transformational decision-making and collaboration.

Human Element: Workforce Evolution

AI is a catalyst for attracting and retaining younger talent, eager to leverage technology. The Institute of Management Accountants warns of the risks of neglecting AI. Instead, embrace its power, balancing efficiency and enriching employees’ work-life experience.

AI’s goal is empowerment, enabling your workforce to focus on strategic, value-added work. Concur solutions help you measure ROI with a comprehensive lens, accounting for human and long-term benefits in your calculations.

Collaborative Success: Buy vs. Build

As you decide between developing AI capabilities in-house or leveraging existing tools, consider the portfolio of AI solutions offered by SAP Concur. Our offerings expedite certainty and rapid returns, allowing you to partner with industry experts who understand the nuanced ROI landscape.

Understanding ROI is a dynamic journey, integral to achieving strategic advantage and efficiency. To delve deeper and learn more, explore our eBook CFO Insights: How to Measure and Maximize AI Returns, designed to empower your decision-making process.