CIO Mind, The Gartner CIO Podcast
How to Calculate the Costs and Prove the Business Value of GenAI
May 28, 2024
Rita Sallam, Gartner Distinguished VP Analyst, and former CFO, discusses proving GenAI's value beyond immediate financial returns. Topics include projecting costs, managing budgets, measuring ROI, and convincing CFOs of GenAI's value beyond the balance sheet.
25:36
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Quick takeaways
- GenAI projects often abandoned due to unclear business value, not just financial returns.
- Cost estimation and management critical for proving GenAI's value beyond cost reduction to CFOs.
Deep dives
Challenges in Generative AI Projects
Around 30% of generative AI projects are abandoned after the proof of concept stage due to escalating costs and unclear business value, especially following the previous hype surrounding generative AI. Despite global spending on AI expected to reach 3 trillion dollars, organizations struggle to prove and realize value from their AI investments.
