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Glossary entry

AI Return on Investment

A measure of the return created by AI initiatives relative to the cost of building, operating, and governing them.

Why it matters

AI ROI matters because enterprise AI often creates multiple forms of value at different speeds, and weak ROI models can lead leaders to overstate benefits or scale spend before proof is credible.

AI ROI should rarely be treated as a single percentage detached from operating reality. In practice, leaders need to examine efficiency, revenue, risk, strategic, and capability effects together.

That is why AI ROI is best understood alongside AI Value Gap, Total Cost of Ownership, and Capability ROI.