Observe Employees to Determine AI's True Value

A new framework for assessing the value of AI investments suggests focusing on how artificial intelligence impacts employees' daily workflows. Instead of solely concentrating on the implementation rates or technical performance of AI systems, the proposed method advises observing the employees who interact with the technology.

This strategy is based on the idea that the extra clicks, workarounds, and slowdowns experienced by employees can pinpoint the exact areas where AI can provide tangible benefits. For example, the leadership team of a global retailer initially saw a success with its AI-driven recommendation engine for customer service, as response times improved and recommendations became more accurate. However, closer observation revealed that employees were using the system inefficiently, indicating it wasn't fully meeting their needs.

The method emphasizes that AI's true business value should be measured by improved business outcomes, rather than solely by adoption numbers or activity dashboards. An AI system may be technically accurate, but if it does not help achieve essential business goals, or if employees must significantly adapt their work methods to use it, its actual value can be questioned.

The proposed "one-hour test" aims to provide businesses with a quick and practical way to evaluate the potential return on AI investments before significant capital is expended. It encourages companies to directly observe the experiences of employees working with AI systems. This observation-based evaluation can help align AI resources more effectively and ensure that technology truly supports and enhances business objectives.