Unlocking Business Value: The Importance of Considering Business Value when Starting an Applied Artificial Intelligence Product

3 min readJun 29, 2023

Introduction

Artificial Intelligence (AI) has rapidly emerged as a transformative technology, revolutionizing various industries and business processes. From healthcare to finance, AI-powered solutions have the potential to enhance efficiency, automate tasks, and generate significant business value. However, before diving into the development of an applied AI product, it is essential to consider the business value it can deliver. By aligning AI initiatives with strategic goals and understanding the potential return on investment, businesses can maximize the benefits of their AI endeavors.

Understanding Business Goals

Before embarking on an applied AI project, it is crucial to have a clear understanding of your organization’s business goals. AI should be seen as a means to achieve those goals, rather than an end in itself. Determine the specific challenges or opportunities you aim to address using AI. Whether it’s improving customer service, optimizing supply chains, or enhancing product recommendations, aligning AI initiatives with business objectives is fundamental to realizing its value.

Identifying High-Impact Use Cases

To maximize business value, it is important to identify and prioritize high-impact use cases where AI can make a significant difference. Engage with stakeholders from different departments and functions to gather insights on pain points, inefficiencies, or areas that can benefit from intelligent automation. Evaluate the potential impact of AI solutions on key performance indicators, such as cost reduction, revenue growth, customer satisfaction, or operational efficiency. Focusing on high-value use cases ensures that your AI investment yields tangible results and generates a positive return.

Quantifying Return on Investment (ROI)

To make informed decisions about AI investments, it is essential to quantify the potential return on investment. Assess the costs associated with developing and deploying an AI solution, including data acquisition, infrastructure, talent, and ongoing maintenance. Simultaneously, estimate the potential benefits in financial terms, such as increased revenue, cost savings, or improved productivity. By comparing costs and benefits, you can determine the viability and profitability of your AI initiative, enabling more effective resource allocation.

Consider Ethical and Legal Implications

While evaluating the business value of an AI product, it is essential to consider ethical and legal implications. AI systems must be designed to uphold privacy, security, and fairness. Assess the potential risks associated with data privacy, bias, and algorithmic transparency. Compliance with relevant regulations, such as GDPR or HIPAA, should be a top priority. By ensuring ethical and legal compliance, you protect your business reputation and avoid potential pitfalls that may erode the anticipated business value of your AI product.

Building a Scalable and Sustainable Model

To drive long-term business value, it is crucial to build a scalable and sustainable AI model. Consider factors such as data availability, system integration, and adaptability to changing business requirements. Developing a robust infrastructure capable of handling large-scale data and accommodating future growth is vital. Additionally, focus on developing AI models that can evolve and learn from new data, ensuring their relevance and effectiveness over time.

Conclusion

When embarking on an applied AI project, it is essential to think about the business value it can deliver. Aligning AI initiatives with business goals, identifying high-impact use cases, quantifying return on investment, considering ethical and legal implications, and building scalable models are all critical steps in maximizing the value of AI for your organization. By thinking strategically about AI and its potential impact, businesses can unlock new opportunities, gain a competitive edge, and drive sustainable growth in the era of artificial intelligence.