Measuring the ROI of Generative AI: What to Track and What to Ignore

1–2 minutes

Updated

Short answer: measure generative AI like any other process change: a baseline before, the same metric after, and the full cost including people’s review time. Ignore “number of prompts” and “time saved” surveys on their own; they measure activity, not results.

What to track

MetricExampleWhy it matters
Cycle timeHours from ticket opened to resolvedCaptures real time saved, including review
ThroughputReports, tickets or PRs completed per weekShows whether saved time turns into output
QualityRework rate, defects, customer correctionsSpeed with more rework is not a gain
Adoption that sticksWeekly active users after 8 weeksNovelty fades; habits show real value
Total costLicences + usage + setup + review timeThe denominator most business cases forget

A simple ROI formula

roi.txt

monthly_benefit = (baseline_minutes - new_minutes) / 60
                  * tasks_per_month * loaded_hourly_cost
                  - extra_review_minutes / 60 * tasks_per_month * loaded_hourly_cost

monthly_cost    = licences + model_usage + maintenance_hours * hourly_cost

roi = (monthly_benefit - monthly_cost) / monthly_cost

For model usage on Amazon Bedrock, estimate it with the token cost calculator.

How to get a fair baseline

  1. Pick one process and measure it for two to four weeks before the change.
  2. Use a pilot group and a comparison group doing the same work, when possible.
  3. Measure the same metric, the same way, after the change.
  4. Report the range, not just the best week.

Self-reported time savings are usually higher than measured ones. Use them as a signal for where to measure, not as the result.

Joniel Gallo · Cloud & AI Engineer

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