GLOSSARY
Return on investment (ROI)
For a project assessment, return on investment, or ROI, compares financially valued net benefit with the costs included in the calculation. The period, cost boundary and valuation assumptions must be explicit. Improvements in quality can matter even when their monetary value is not yet established.
Put released time into an economic context
An AI tool may reduce the time a salesperson needs to prepare for a meeting. This can create value if the released time supports additional customer conversations or avoids spending that would otherwise occur. An unchanged salary payment does not initially decrease.
The calculation must also cover implementation, review, corrections and continuing support. Additional revenue is rarely attributable to one tool alone: market conditions, the offer, pricing and team performance also matter. A range with transparent assumptions is therefore more useful to management than an apparently precise return promise.
Define measurement before the pilot
Compare equivalent tasks against an appropriate baseline. Record time, acceptable quality, rework and capacity that can actually be used. Total cost of ownership supplies the cost side. A stronger ROI conclusion becomes possible when the observed operational advantage has a traceable economic consequence.