- Businesses should understand how to measure AI project success or failure to avoid costly mistakes.
- Key questions of measures include whether AI is improving decision-making, customer experience, and operational efficiency.
- Metrics like ROI, adoption rate, and customer experience metrics are crucial for evaluating AI impact.
OUR TAKE
While AI can contribute to the development of institutes, not all of them are capable of doing it. Therefore, key questions and metrics are helpful for the institute to tell whether the AI is successful or not.
–Audrey Huang, BTW reporter
AI offers benefits to businesses, but not all AI initiatives succeed. To maximise the potential of AI, businesses need to develop robust evaluation processes. This involves asking critical questions about the impact of AI on decision-making, customer experience, and operational efficiency, and tracking relevant KPIs such as ROI and customer satisfaction.
Essential questions
First, is AI helping us to make better decisions? – The owner of the institutes should understand whether the insights they’re getting from AI are guiding us towards achieving strategic objectives, identifying opportunities, and taking quicker and more effective actions. Second, what is the level of buy-in? – Their AI initiatives should be fostering a cultural adoption of AI both internally in their institutes and among their customers.
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Vital KPIs to measure AI
First, Return on Investment (ROI), which means that AI initiatives or projects need to be delivering benefits that justify the expense. Second, adoption rate, which means the percentage of customers or employees are using the institute’s AI tools. A high score here means people trust its initiatives and find them useful. Third, customer experience metrics, including customer satisfaction scores, churn rates, net promoter scores, and social engagement scores. These metrics can indicate how the institute’s AI projects impact customer experience.
