ROI is not the right metric for evaluating investments in AI-based automation initiatives. An alternate way of framing this would be to assess if investment in AI would increase the value of your firm. Return on Invested Capital (ROIC) would be an appropriate metric to understand whether the investment in AI would create value for the firm.
Krishnan is Senior Manager at Mphasis NEXT Labs in Bangalore, India. He earned his Ph.D. from IIM Bangalore in Production and Operations Management.