ROI of AI: Effectiveness and Measurement

Knowing what an AI investment is worth and what determines that value is a pre-requisite for intelligent decision making- in choosing to invest in this field and domain. Investments in advanced transformation like AI, in deciding on the appropriate price to pay or receive in a takeover and in making financial choices when running a business are to be evaluated thoroughly. The premise of computing ROI for such investments, is that we can make reasonable estimates of value, and that the same fundamental principles determine the values of all types of assets, real tangible as well as intangibles. Some investments are easier to valuate as compared to others. Valuation process and effectiveness measurement techniques of new and highly evolving technologies such as AI vary from investment to investment. Also, the uncertainty associated with value estimates is different for different investments and assets, but the core principles and the foundation of valuations remain almost same.