Technology is constantly changing the world and how we live in it. It’s become a critical part for every organization; most wouldn’t be able to operate without it. Some recent technology innovations are exciting — like AI. With all the buzz around AI, many organizations quickly jumped at the opportunity to implement it, while others were wary. Many feel like they “should” be using it and worry about losing their competitive edge without it.
While AI offers some great benefits, it’s not necessary for every organization and use case. For some, it can be detrimental, causing a negative return on investment (ROI). If you’re considering adopting AI tools, there may be an alternative better suited to your needs: automation. Let’s discuss determining ROI and if AI is a worthwhile investment.
Anand Narasimhan
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AI, automation, and weighing their value
Should you incorporate AI into your processes? Would AI bring good value or require too much work to set up? Does AI deliver a good ROI, or are there better options? These are likely all questions that arise as you consider whether or not you want to incorporate AI into your operational processes. Or maybe you’ve already started using AI and have realized it’s not all that you expected it to be.
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AI and ROI potential
AI promises to improve efficiency, simplify manual tasks, and generally make our jobs (and lives) easier. However, about 75% of companies struggle to demonstrate a clear return on investment (ROI) for the AI tools they adopt.
ROI is a critical metric to measure; you want to ensure you have enough data to back the investment decision. In my opinion, it’s too early to tell AI’s ROI. We need more time to create a solid measurement framework. Despite this, you can get an idea of AI’s ROI potential for your business with specific indicators:
Leading indicators offer quick, apparent returns. For instance, AI can help put specific tasks, like troubleshooting customer issues, on autopilot. This can save time that your team can put toward revenue-generating tasks.
Lagging indicators take time to show their benefits. For example, customer satisfaction improves because AI enhances the self-service experience.
Consider the leading and lagging indicators specific to your organization and what success would look like for you in these terms.
Before investing in AI, the most important thing to consider is: does this use case need human-like intelligence, or does it fall into a more structured logic category? AI is complex, autonomous, and flexible. It excels in situations that require open-ended problem-solving. AI can adapt, reason, and evolve through interactions. It is great for tasks that require human reasoning, like helping a customer troubleshoot a problem in real time.
There are a few downsides to consider with AI. It comes with significant data and privacy risks and can be unpredictable. It may also require significant training to avoid undesirable outcomes and “hallucinations.”
Automation and ROI potential
Many use automation and AI interchangeably. While both can enhance productivity, efficiency, and ROI, they differ and offer distinct benefits.
Automation has been shown to improve ROI significantly. Automation differs from AI in that it executes pre-defined, rule-based tasks automatically. It’s ideal for situations where fast, reliable outcomes are necessary to achieve business goals. Automation is great for functions that don’t require human reasoning.
I like to call these “if this, then that” scenarios. For example, if a customer fills out a lead form on your website, you can have automation set to send a pre-written confirmation email automatically. Automation doesn’t require complex, human-like reasoning to execute a task. It saves time, maintains compliance, ensures data quality, and boosts employee productivity and satisfaction. It’s an excellent solution for repetitive tasks with clear, predefined outcomes.
Automation has a couple of downsides if you need help accomplishing more complicated tasks. Automation tools are limited — they can only achieve the tasks they are programmed to perform. They are not adaptable and can’t handle complex tasks. For example, automation can send a new lead a confirmation email, but it cannot interact with them independently. However, it can be argued that automation is still beneficial because it frees up valuable time that your team can use toward more complicated tasks.
Good ROI is critical — the right technology can help
Better productivity means better profit, no matter which way you slice it. Technology today can help you achieve both — but with so many options, it’s hard to know which tools are worthwhile. Before investing, you must carefully consider what use cases are better for AI versus automation and how these technologies will impact your organization and customers.
For many businesses, the need for technology is simply about increasing efficiency and saving time. Automation is an excellent solution for specific manual tasks that are a necessity to daily operations — such as document generation, contract management, or eSign software. If your team’s main bottleneck is administrative overhead, automation can provide immediate ROI, without the need for an AI solution.
We’ve compiled a list of the best document management software.
This article was produced as part of TechRadarPro’s Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro
