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Stop Measuring AI Activity: Start Measuring ROAI

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Imagine a marketing team adopting an AI-enabled video platform. 

The team can now produce more videos in less time. It launches additional campaigns and creates more content than it could before. 

The productivity improvement is real. The people doing the work probably feel the difference. 

Then the team presents the result to the business: 

We produced twice as many videos. 

That is useful information. 

It is not yet proof of value. 

Did the company close more business? Did engagement improve? Did the campaigns influence the result they were created to support? 

This is the measurement problem organizations keep running into with AI. They track what AI is doing and assume that activity equals return. 

It does not. 

Measuring the return on AI investment requires looking beyond AI activity to what actually improved. Usage, output volume and productivity can show that people are using AI, but business value comes from better outcomes: stronger decisions, improved workflows, reduced risk, increased revenue or another measurable result tied to the organization's objective.

I call it ROAI

The question is return on AI investment. 

What became better because the company used AI? 

That sounds obvious, but companies are easily distracted by the metrics available inside the tool. 

Token consumption can show adoption and cost. Logins can show whether employees are trying the platform. The number of outputs can show how much the system is producing. 

None of those numbers proves that the business improved. 

AI can produce a lot of garbage very quickly. 

If output volume becomes the success metric, employees can hit the target while creating more noise for customers, coworkers and managers.

Measure the outcome, not the artifact

The marketing team may produce more videos. 

That is an artifact. 

The business outcome could be stronger engagement, better-qualified leads or additional closed deals. 

The same distinction applies across the company. 

A sales team may generate more account summaries, but the meaningful question is whether those summaries help representatives focus on the right opportunities. 

A leader may receive more reports, but the question is whether the reports improve a decision. 

A security team may produce more findings, but the question is whether risk is actually reduced. 

The metric should follow the objective.

AI may create value by helping you choose

Suppose the marketing team uses AI to create three different campaign approaches and run them concurrently. AI then helps aggregate the performance data and identify the signals coming back from each campaign. 

The team can use that information to decide where the company should invest more money. 

That is not simply faster content production. It is intelligence-driven decision-making. 

The business can track the decision, the investment and the result. 

AI may create more value by helping an organization choose correctly than by helping it produce more.

Establish the baseline before the AI pilot

A lot of companies try to prove value after the experiment has already started. 

At that point, they know what the AI tool is doing, but they may not know how the workflow performed before it was introduced. 

Without a baseline, it becomes difficult to separate improvement from general activity. 

Before changing the workflow, define how it operates today. 

How much time does it take? What does the current result look like? Where does rework happen? What metric is the business trying to improve? 

Then introduce AI and measure again. 

This is basic implementation discipline. AI does not make it optional.

Measure AI training by what changes at work

The same principle applies to workforce education. 

Completing AI training is an activity. 

Using the capability to improve the work is the outcome. 

The organization needs managers and business leaders involved because they understand what performance should look like after the learning is applied. 

Learning and development can report that employees completed the program. 

The business must determine whether the program changed anything that matters. 

ROAI is not about finding one universal AI metric. 

It is about refusing to confuse visible activity with business value.    

Frequently Asked Questions About Measuring AI ROI

What is ROAI?
ROAI means return on AI investment. It focuses on what became better because an organization used AI rather than measuring AI activity alone. The relevant return will depend on the objective and may include improved business outcomes, stronger decisions, more effective workflows, reduced risk or other measurable improvements.
What metrics should companies use to measure AI ROI?
There is no single metric for AI ROI. The metric should follow the business objective. Organizations should identify the outcome they want to improve, establish how the workflow performs before AI is introduced and then measure whether that outcome changes. 
Are AI usage metrics valuable?
Yes, but they measure activity rather than business value. Metrics such as logins, token consumption and output volume can help organizations understand adoption and usage, but they do not prove that AI improved the business. 
How should companies measure the ROI of AI training?
Companies should look beyond training completion and determine whether employees apply what they learned to improve their work. Managers and business leaders can help evaluate whether AI capability leads to better workflows, decisions or other meaningful business outcomes. 

Michael Burch

As VP, AI Enablement and Acceleration at Security Journey, I'm focused on the gap the industry keeps missing: organizations have spent two years buying AI access, but access isn't capability. My team builds the curriculum that closes that gap.

Michael Burch

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