AI ROI
AI ROI Sensitivity Analysis: Does It Hold Up?
Use sensitivity analysis to test an AI business case against lower adoption, smaller benefits, higher costs and slower realization before capital is committed.
A single ROI number hides uncertainty
Every AI business case contains assumptions.
Start with the base case
Separate inputs that are known from those that are estimated.
Stress the variables that drive value
Test adoption, utilization, time saved, volume, implementation cost and recurring operating cost.
Add downside and upside scenarios
Use credible documented assumptions.
Look for the break-even point
Ask what must be true for the investment to break even.
Use sensitivity analysis to improve implementation
Let the model identify the operating assumptions that need the most attention.
Replace modeled ranges with realized data
Update the model after deployment.