How to Measure AI Value

Measuring AI value requires looking beyond simple efficiency metrics and instead analyzing how it creates new capabilities. Value creation is broken down into three opportunity types: automation, augmentation, and innovation. AI value rarely appears at once but emerges in a chain, starting with process improvements and eventually resulting in financial outcomes. For automation systems like fraud detection, value comes from efficiency and speed, while augmentation systems like AI for UX research improve decision quality and human expertise.