Explaining AI Productivity to the Board vs to My AI Bros!

AI productivity is easy to hype... until someone asks you to measure it.

Read time: 2.5 minutes

Telling your board about AI productivity can be difficult. When you say β€œAI will help speed up the execution of work,” the board asks how it will change your margins, headcount, or risk exposure.

When you explain to AI enthusiasts, call it an "agent" or "LLM" and they will be happy! They don't care about actual impact.

How To Speak About AI Productivity Like An Adult?

1. Never Start With β€œTime Saved.”

Time saved and productivity are different concepts... most times, the latter just means you now have to do more work.
Alternatives: Start with Output/FTE, Cycle Time or Cost Avoided.

2. Connect AI To One Decision, Not Ten Applications

Your Board approves the impact of a decision on a business, not the value of the tool used to make the decision.
Alternatives: Choose ONE decision and compare the "Before" and "After".

3. If AI Adds Steps To The Work Flow, You Are Not Using It For Productivity

When you use an Assistant to assist you, although it seems they helped, they take longer to review, thus eliminating ROI.
Alternatives: Only fund AI that removes steps from the workflow.

4. Measure Override Rates With Intent

If Individuals are continuously overriding the AI model, it is not being used to inform decisions but is instead merely being performed theatrically.
Alternatives: Measure Adoption, Measure Overrides and Measure Outcome Delta.

5. The Board Will Only Base Decisions On Margins

When AI Hype cannot withstand basic financial calculations, the Hype conditioner is over (inflationary, bubble).
Alternatives: Demonstrate "Pre/Post" Unit Economics (as opposed to the residual euphoria).

πŸ’‘Key Takeaway: 

AI productivity can be marketed effectively by those who want to believe, but AI productivity cannot be defended by those who do not believe.

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