Rethinking AI Metrics: Why TTV is the Key to Measuring Success

Why ROI Falls Short for AI Projects 

ROI has traditionally been a key metric for evaluating business investments, but it often falls short when applied to AI initiatives. Here’s why: 

• AI’s Benefits Are Often Intangible 
  Many of AI’s advantages, such as enhanced decision-making or improved employee satisfaction, don’t immediately translate into monetary gains but are critical for long-term success. 

• ROI Is Backward-Looking 
  ROI focuses on historical performance, while AI’s value compounds over time as workflows optimise and insights improve. 

• AI Requires Iterative Investment 
  AI evolves continuously, and initial costs may overshadow early returns. The real value of AI often emerges over time as systems mature and deliver compounding benefits. 

Time to Value (TTV): A Better Metric for AI Success 

Time to Value (TTV) measures how quickly an AI initiative delivers measurable results. It shifts the focus from financial returns to the speed and effectiveness of impact. 

Why TTV Matters for AI: 

• Agility: Fast results demonstrate AI’s potential and foster organisational buy-in. 

• Alignment: Shorter TTV allows organisations to align AI with evolving business needs. 

• Scalability: Measuring TTV highlights quick wins that can be expanded organisation-wide. 

For example, an AI-powered chatbot for citizen inquiries might reduce response times within weeks of deployment, providing immediate value. Measuring how quickly tools like this make an impact is a better success indicator than long-term ROI. 

 KPIs for Measuring AI Impact 

To effectively measure AI’s success, CIOs should track a mix of operational, strategic, and cultural KPIs. 

1. Operational KPIs

Focus on how AI improves efficiency and enhances processes: 

• Time Saved on Repetitive Tasks: Measure hours saved by automating manual processes. 

• Accuracy Rates: Track reductions in errors for tasks like compliance checks or forecasting. 

• Uptime and Reliability: Ensure AI systems deliver consistent performance.  

2. Strategic KPIs

Evaluate how AI contributes to broader organisational goals: 

• Time to Value (TTV): Measure how quickly AI projects deliver measurable success. 

• Decision-Making Speed: Track reductions in time taken for data-driven decisions. 

• Citizen/Customer Satisfaction: Use surveys or Net Promoter Scores (NPS) to measure improved user experiences.  

3. Cultural KPIs

Highlight the impact of AI on employees and organisational culture: 

• Employee Engagement: Measure how employees feel about working alongside AI. 

• AI Adoption Rates: Track how quickly teams integrate AI tools into workflows. 

• Upskilling Metrics: Count employees trained in AI-related skills, like using dashboards or interpreting AI-driven insights.  

Building a Measurement Framework with Pragmatic AI 

Pragmatic AI offers a framework for delivering measurable impact by focusing on practical, real-world applications. Its targeted approach ensures KPIs like TTV and operational improvements are achieved quickly. 

How Pragmatic AI Drives Measurable Impact: 

• Targeted Applications: Start with high-impact, low-risk use cases, such as automating repetitive tasks. 

• Low Complexity: Pragmatic AI integrates into existing workflows, avoiding disruption. 

• Scalable Solutions: Solutions are designed to scale, delivering greater impact over time.  

Example: Measuring AI in Local Government 

A local council uses AI to streamline housing applications by automating document verification and flagging incomplete submissions. 

KPIs to track the impact include: 

• Time Saved: Measure reductions in time spent by staff on manual checks. 

• Decision-Making Speed: Assess how quickly applications are processed. 

• Citizen Satisfaction: Conduct surveys to gauge citizen feedback on improved response times.  

The Case for a Balanced Measurement Framework 

For CIOs, demonstrating AI’s value requires going beyond ROI. By focusing on TTV and a balanced set of KPIs, organisations can better capture the operational, strategic, and cultural benefits AI provides. 

This approach ensures AI adoption isn’t just successful but sustainable, building confidence among stakeholders and setting the stage for future growth. 

Want to dive deeper into measuring AI impact? Download our latest whitepaper and explore advanced KPIs, case studies, and actionable strategies. Discover how to align AI with your organisational goals and prove its value effectively.