AI Moving to Value Creator?

A thought provoking - conversation starter - to use with your peers and reports:

A recently big publication spawned a social media post.

The publication stated, Aritical Intelligence (AI) is now moving beyond the experimentation phase and into direct business value.

20%+ of companies surveyed state they are scaling their use of GenAI, with 4% reporting GenAI is core [critical] to their operations! >60% state plans to invest $50M+ over the next year.

Laying out the some facts, based on my conversations and viewpoints:

• "AI" is a blanket term most use as reference to OpenAI based products (Microsoft

invested and uses OpenAI to power Co-Pilot).

• Reference the true Levels of AI here

• OpenAI announced public beta only 1.5 years ago, so we are told within 1.5 years of

this bleeding edge release, a product we do not understand, the S&P500 have

a) onboarded it successfully and b) are measuring a positive ROI

• Within this 1.5 years, OpenAI transitioned from a non-profit to for profit, immediately

partnering with Microsoft

• Most of the AI solutions simply take a handful existing LLM's and apply their top layer

(akin to Private Labeling for goods). The best narrow down the focus and capability,

therefore enhancing accuracy and ROI. Examples include: chat bots, ETL..

Based on my conversations, hardly anyone has measurements to show any ROIC. More report the ROI was not as projected and more funds must be pumped into the project - as you and I know, most companies do not wish to terminate a project, instread preferring to sink more cost .

While we are pro-technology, typically tech allows efficiency, and much like Toyota, we do require measurements to show the value. Otherwise, I have some magic oil to sell you that cures whatever ailments exist in your life right now.

P.S. If you spend $1M implementing AI and it does not generate revenue, then you accomplished the same as a $1M loss.

Additional notes:

When we meet people online and in-person, one question we always ask is what they think about AI and if they are using it. Followed by any measurements and ultimately ROI. Only two (to date) have any idea of the rate of pro over con, or the noise/effective rate. Nobody really has any measurements to show the spend or savings, let alone the cash flow..the bottom line. Often, they hit a wall where the expected result simple does not happen (from 40% to 90% implementation) and their workload exponentially increases, blowing the project expense and timeline.