ROI

ROI (Return on Investment) is the metric that measures investment return by relating net benefit to cost incurred, expressed as a percentage. A 200% ROI means every euro invested generated two euros in return.

How it works #

It is calculated as: (Benefit - Cost) / Cost × 100. In the context of IT projects with AI components, ROI calculation must include not only implementation costs but also maintenance, team training, governance, and model error management costs.

What it’s for #

ROI is the primary tool for evaluating whether an AI investment makes economic sense. But in today’s market it is also the most abused tool: vendors promising triple-digit ROI based on controlled demos, without considering real operational costs. The AI Manager is who verifies that the numbers are real, not from slides.

What can go wrong #

An ROI calculated only on immediate benefits without counting hidden costs (model maintenance, periodic retraining, false positive management, GDPR compliance) is a false ROI. The difference between a successful AI project and an expensive failure almost always lies in the quality of the initial ROI calculation.