Don’t Just Talk About AI. Measure Business Outputs. Here’s How.
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Results are best when choosing the output to improve, varying AI tools until one moves the dial, and measuring Time To Production
60% confidenceApproach AI projects as mathematical optimization problems by defining a target measure, identifying influencing variables, and modeling the mechanism by which the target is moved
60% confidenceTheory on why so many pilots fail is that companies pick an AI tool and pilot duration and qualitatively check in with users, rather than measuring outputs
60% confidenceThe theory on why so many pilots fail is that companies tend to pick an AI tool and pilot duration and qualitatively check in with users at the end rather than measuring outputs
60% confidenceAI systems trusted with real decisions are what Peter Drucker would call executives
60% confidenceLast year felt like the Year of the AI Pilot with widespread disappointment in the impact of AI pilots
60% confidenceAI is an invention in the process of becoming an innovation; an invention is a new capability that is not an innovation until it has a business model
60% confidenceThe form innovation takes will be AI systems trusted with real decisions, what Peter Drucker would call executives and are referred to as agentic AI
60% confidenceLast year felt like the Year of the AI Pilot with widespread disappointment in the impact of AI pilots
60% confidenceThe idea is to approach AI projects as mathematical optimization problems: Define a target measure, ask what variables influence that metric, and model the mechanism
60% confidenceOrganizations must focus on outputs rather than activities, anecdotes and initiatives which are inputs
60% confidenceOrganizations must focus on outputs rather than activities, anecdotes and initiatives which are merely inputs
60% confidenceAI is an invention in the process of becoming an innovation, not becoming an innovation until it has a business model
60% confidence95 percent of generative AI pilots at companies are failing according to MIT report
60% confidence