Stop speculating, start quantifying: CEOs must deliver measurable ROI on AI

AI is transforming business, promising greater streamlining of operations, sharper decision-making potential and operational growth. It’s this potential in benefits that is currently pushing SMEs to take the plunge. However, despite AI’s promise, many organisations are struggling to tap into its full potential.

The problem SMEs are commonly running into is treating AI as a technology experiment, rather than a core business strategy, the UK technology consultancy. Many in the C-suite are under pressure to innovate, but are rightfully sceptical of large, speculative investments.

Jumping straight to a successfully functioning TMO is impossible without first fully establishing an effective PMO. A phased approach delivers immediate value while simultaneously laying the groundwork for future growth plans.

Engaging stakeholders to comprehend strategic aims, reviewing your current project portfolio and documenting the business “As-Is” landscape are all first steps to consider. Based on the subsequent analysis and market best practices, it becomes easier to tailor the PMO foundation to fit the business’s current and future needs, complete with a governance structure and standard templates.

After the design is complete, the setup can begin properly. This means creating an agreed implementation plan to establish core processes for project prioritisation and business case development.

With the design complete, the setup begins. This involves creating and agreeing on an implementation plan that establishes core processes for project prioritisation and business case development. Businesses will need to consider the scope, schedule and budget available with this, which varies organisation to organisation. Establishing a practical PMO provides clear governance and visibility for the project portfolio to come.

Through this step, the limitations of the PMO versus TMO are also clear on display. Whilst essential to have as a foundation, the PMO model is limited, lacking the ability to track strategic value and communicate with the business rather than simply be guided by it. Ultimately, this creates a gap between project outputs and business outcomes.

Investing in AI without a clear strategy or method to quantify its value often leads to wasted resources and minimal impact. Despite AI’s promise, many UK businesses struggle to tap into its full potential simply because they cannot connect AI initiatives to their core business goals or measure their success.

The most successful organisations understand that to succeed, they must integrate AI into their core strategy and foster a data-driven culture. The key is to move from broad ambition to a structured, evidence-based evaluation of AI opportunities. A well-chosen AI initiative, one that is explicitly aligned to business goals and solves a real business problem, is what ultimately drives growth and improves efficiency.

By outlining how SME CEOs and their CIOs must start with the people and problems within their organisation before jumping to tackling technology.

A pragmatic, structured approach begins with ensuring stakeholder engagement across your organisation. The first stage involves capturing potential AI ideas across every department, focusing on initiatives that either resolve a specific compliance or process issue, or to fulfil a tangible business opportunity.

Quantifying this list through value scoring criteria that matter directly to your business is the next step, judging AI initiatives by each’s ability to increase profitability, reduce costs, improve customer experience, etc. In ranking every use case on its potential value against organisational readiness to implement, you gain a clearer proof of concept shortlist for initiatives. This then filters the noise and focuses finite resources on only the initiatives that are both high-value and most realistically feasible.

At every stage, data is driving decision-making – tangible factors creating evidence-based decisions, rather than speculation and assumptions. Just because one strategy works for a competitor does not mean it works best for your business. From there, AI use cases can move to a pilot program.

The most critical stage for CEOs to gain quantifiable value is through planning and mobilising the AI potential use cases and pilots.

This is the most critical stage for the C-suite. Ahead of a project truly beginning, it is essential to agree on success criteria and tracking progress with clear KPIs, such as cost savings, revenue growth. Only once the pilot is proven and the lessons learned are documented can the AI initiative be confidently and effectively scaled across the organisation.

Throughout this structured, three-stage approach – capturing ideas, addressing value against readiness, and proving this through a measurable pilot – CEOs gain traction in demystifying AI. It’s important to flip the journey of innovation from abstract potential and a leap of faith into a measurable success story.

Guiding a business through the AI maze is complex and only complicated further by industry pressures to innovate. Choosing the right initiatives that will benefit your business is therefore ever the more critical for success. It’s important to start your AI journey on the right foot to maximise your ROI. Turning your AI vision into real results needs that expert, industry experience, which an empathy-driven consultancy partner can provide by getting on board with your business, your journey to success, and your immediate strategic plan.