Devising a Framework to Determine the Return on Investment (ROI) for AI

The emergence of AI as a tool for companies has generated a wide range of questions ripe for evaluation. The Capstone team will focus on devising a framework to determine the return on investment (ROI) that corporations can expect from investing in AI technologies. Although there are concerns about labor market implications, there is also a significant potential for improving the productivity of a corporation’s workforce. The framework will identify and be adaptable to various benefits (the numerator), which may vary according to the distinctive characteristics of different industries. The team will delve into how generative AI can create tangible value for corporate clients and identify the cost components, including the opportunity costs of AI deployment within an organization. The framework will also assess the risk-adjusted ROI, as generative AI is highly dependent on its accuracy on the quality and volume of training data.