How to Set an AI Strategy and Measure Business Value

The impact of AI on businesses is clear - yet nearly half (49%) of organizations using AI can't show exactly how it helps their bottom line. By 2025, 92% of CIOs expect their companies to use AI, but translating this stat into real business results remains challenging.

Here’s a known fact - The pressure to deliver AI impact metrics gets overwhelming! 

Luckily, here we cover how AI strategy can measure business value in terms anyone can understand. 

How You Create a Blueprint for a Winning AI Strategy

1. Connect AI to What Matters for Your Business 

Every AI project needs to deliver specific, measurable benefits to your organization. This means carefully choosing projects that directly improve key business metrics.

A well-defined strategy helps avoid wasted resources and creates a clear pathway to success. Focus on:

• Increasing revenue by finding untapped markets and improving how you sell
• Reducing costs and working faster by automating repetitive tasks
• Building stronger customer relationships through personalized experiences and proactive service

2. Make Sure Your Company is Ready for AI 

Success with AI depends on having the right foundation in three key areas. Before starting any AI project, make sure your company has what it needs to support and maintain it. Addressing any gaps early helps ensure smooth adoption and reduces resistance to change:

• Data Preparedness: Have clean, accessible, and diverse data
• Skill Development: Train your teams in AI, machine learning, and data analysis
• Leadership Commitment: Get leaders committed to supporting AI projects

Useful tools to use:

• For storing large amounts of data: Azure Data Lake, AWS S3
• For working together on AI projects: Jupyter Notebook, Databricks

3. Start with Projects That Deliver Clear Results 

Maximizing AI impact starts with selecting scalable and feasible applications. By focusing on areas with clear ROI, businesses can demonstrate the value of AI quickly and build momentum for future projects. Start small, refine the approach, and expand as successes are achieved. Maximizing AI impact starts with selecting scalable and feasible applications:

• Predictive Analytics: Use AI to forecast demand and optimize inventory.
• Fraud Detection: Implement models to identify anomalies in real-time.
• Process Automation: Streamline workflows to reduce manual interventions.

Useful case studies to use:

• Stores using AI to stock the right products at the right time
• Banks stopping millions in fraud losses through AI detection

4. Build a Future-Ready AI Infrastructure

Future-ready AI requires a foundation that can handle growth and adapt to emerging demands. Focus on creating a secure, scalable ecosystem that supports advanced analytics and decision-making. This includes choosing the right tools to manage data flow, deploy models, and ensure system reliability. Ensure scalability and security by constructing a robust AI ecosystem:

Key Components:

1. Data Pipelines: Tools like Apache NiFi and Talend for seamless data integration.
2. Model Deployment: Use TensorFlow or PyTorch for AI model execution.
3. Monitoring Tools: Grafana, and Prometheus for real-time system health insights.
4. Data Privacy and Compliance: Encrypt data with AES-256 standards. And also, maintain compliance with GDPR, CCPA, and similar regulations using an IAM or data governance software.

5. Cultivate a Data-First Culture

Building a data-first mindset means empowering teams to see data as a strategic asset. Encourage decision-making backed by insights and foster collaboration between departments to solve problems. Over time, this approach creates trust in AI and drives consistent results. Embed data-driven practices into your organizational fabric by:

• Providing AI literacy programs for employees at all levels.
• Encouraging cross-functional collaboration to align goals.
• Establishing clear KPIs to demonstrate AI’s business impact.
  

6. Set Clear Ways to Measure Results

Using specific measurements helps you track how AI benefits your business. When you monitor improvements in efficiency, sales, and customer relationships, you can show exactly how AI helps and where you need to make changes. Use these insights to decide where to invest resources and adjust your plans. Track success through:

• Counting the hours and money saved in daily operations
• Recording increases in your sales numbers and market position
• Keeping track of how many customers stay with your business

Top Tools:

• For understanding your data: Power BI and Tableau
• For testing new ideas: Optimizely

7. Iterate for Continuous Improvement

Success with AI requires ongoing attention and updates. Each project teaches you something new about improving your systems and handling new challenges. Regular small improvements add up to major progress over time. Make your AI strategy stronger by:

• Launching pilot programs to test new concepts.
• Collecting feedback to refine algorithms.
• Expanding successful programs across your company

Tools for Growth:

• Kubernetes helps manage your AI systems
• AWS SageMaker lets you adjust resources as needed

8. Embrace Emerging Trends

Keeping up with new technology helps your business grow and innovate. New developments in AI are changing how industries work and creating opportunities to work smarter and serve customers better. Get ready for what's next by using new types of AI:

• Generative AI: AI that creates content and generates new ideas
• Edge Computing: AI that works directly on devices for instant results
• Decision Intelligence: AI that helps make better business decisions using data

What are Some of the Governance and Ethical Considerations for Your AI Strategy?

AI governance ensures responsible and transparent usage, addressing ethical concerns and regulatory compliance. CIOs must balance innovation with accountability to build trust with stakeholders. Key focus areas include:

• Bias Mitigation: Deploy fairness audits to identify and reduce algorithmic bias.
• Regulatory Compliance: Adhere to industry-specific standards like HIPAA, GDPR, and CCPA.
• Transparency: Use explainable AI frameworks to clarify decision-making processes.
• Risk Management: Develop AI risk frameworks to evaluate and mitigate operational risks.

What are the Major AI Security Challenges to Plan for With Your AI Strategy?

AI systems face unique security risks, from attacks that trick the AI to data theft. Leaders like CEOs, CTOs, and CIOs must focus on strong protection to keep operations safe:

• Threat Detection: Using AI tools to spot unusual activity and stop cyber-attacks.
• Data Protection: Protecting data with strong security measures.
• Incident Response: Having clear plans ready to handle security problems quickly.

Build Your Own AI Framework and Strategy with Entrans

A complete AI strategy helps organizations use new technology effectively while showing clear benefits. When leaders focus on matching AI to business goals, making it work at any size, and constantly improving, they help their companies succeed in an AI-driven world.

That said, you need to put an infrastructure and system in place that measures both value and results in terms of ROI. At Entrans, our team of data analysts and generative AI experts work together to deliver results you can measure.Want to know more? Reach out for a free consultation call!