AI Economics: ROI Calculation Methodologies for Enterprise AI — From Traditional Metrics to AI-Specific Frameworks

Key Points

• This analysis aims to address the unique challenges of calculating ROI for enterprise AI projects.
• Comprehensive review of traditional ROI methodologies
• Introduction of the AI-Adjusted ROI framework
• Incorporation of learning curve effects and capability spillovers
• Assessment of strategic optionality and risk-adjusted discount rates
• Traditional metrics inadequately address AI ROI calculation challenges
• The AI-Adjusted ROI framework offers a more tailored approach
• Incorporating unique AI factors improves the accuracy of ROI assessments

Abstract