ROI Attribution in AI projects is notoriously difficult. This framework helps CFOs and technical leaders agree on how to measure the actual financial impact of AI initiatives.
The Attribution Levels
- Direct Cost Savings: Headcount reduction or SaaS tool replacement (easiest to measure, often the smallest impact).
- Productivity Gains: Measuring the time saved by employees (hard to translate to actual dollars unless it prevents new hires).
- Revenue Generation: AI features that directly drive new sales or upsells.
- Strategic Capability: Enabling a new business model or entering a new market (hardest to measure, largest potential impact).
Stop measuring AI by "number of prompts used" and start measuring it by business outcomes.
