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Measuring ROI for AI Projects: Nuance Required

Generative AI solutions can perform a wide variety of tasks.  However, AI solutions have a cost involved and require significant commitments from your organization in the form of prep work, data and testing.  Both the limitations and economics of AI solutions require organizations to be diligent with the selecting the right projects where AI can assist.  

This interactive calculator highlights some of the key inputs and decisions that need to be accounted for, before proceeding with an AI solution.   Here's a quick run-down of how to use the calculator:

- Minimum Monthly Value Threshold: not all problems are worth solving.  Identify the minimum "size" (in dollars/per month) of the problem(s) you want to tackle with AI.  

- Estimated Monthly Profit: this is your initial, high-level estimate of what you expect to "earn" from your AI solution.  For example, if you were to rollout a support chatbot that could handle questions when your call center is closed, you would estimate the amount of value (or profit) in this section.

- Multipliers: AI Solutions can provide additional value to organizations outside of the financial contributions.  Use the multipliers to capture any "indirect" impact to your company.

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- Risk Factor: What if your AI project doesn't work out like you expected? Perhaps it's not able to realize all the goals or provide all the intended insights.  A higher risk factor should be used when the "unknowns" outweigh the "knowns" for your solution.

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