From Newsweek · · 50s
AI Productivity Gains Are Worth It?
AI boosts productivity but companies struggle to prove financial returns.
In brief
AI boosts productivity but companies struggle to prove financial returns. Businesses report AI productivity gains but face challenges measuring real financial value from AI investments. Originally reported by Newsweek.
AI Productivity Gains
Businesses report AI productivity gains but struggle to show financial value.
EY Survey Finds Half of CEOs
Half of 1,200 CEOs surveyed across 21 countries see AI as biggest productivity contributor.
23% Absorb Gains Before Bottom Line
23 percent of companies absorb AI gains before reaching the bottom line.
Measuring AI Impact
Companies must measure outcomes, not adoption, to prove AI value.
“Companies should measure outcomes, not adoption. The important question is not how many employees are using AI, but whether it is reducing costs, increasing revenue, improving quality or enabling people to do more valuable work”
AI ROI Challenge
Businesses struggle to prove AI value without baseline comparisons.
“Companies need to ask a simple counterfactual question: what would have happened without the AI? Comparing AI-enabled teams or processes with credible baselines or similar non-AI groups can help distinguish the impact of AI from changes in demand, staffing, management or wider market conditions”
GM's AI Approach
General Motors starts with specific business problems and measurable outcomes.
“At GM, our AI strategy is practical by design. We start with a specific business or engineering challenge, apply the right tool, and scale only what measurably improves the work”
AI Improves Testing 10x
AI testing catches 10x more defects during development.
The main idea
Businesses report AI productivity gains but face challenges measuring real financial value from AI investments.
