Where’s the ROAI?
As the world becomes increasingly reliant on technology and driven by data, the excitement about artificial intelligence (AI) solutions continues to skyrocket.
As the world becomes increasingly reliant on technology and driven by data, the excitement about artificial intelligence (AI) solutions continues to skyrocket. Corporate boardrooms are abuzz with discussions about exploring the possibilities of AI, and massive amounts of capital are being funneled into building AI infrastructure. Companies such Nvidia, Corestreet, and OpenAI are experiencing exponential revenue growth – and valuations, driven by this immense interest.
However, one can’t help but wonder: how long can this frenzy continue? The saying goes, “The market can remain irrational longer than you can remain solvent.” Sooner or later, the market will demand tangible financial returns, and real-world use cases with quantifiable Return on Investment on AI (ROAI) will need to emerge to sustain this level of investment.
I’m not arguing that AI is an unsustainable bubble. As someone who has spent a significant part of my career in data and analytics, I’m an optimist and a believer in the transformative potential that can be achieved. I’ve witnessed firsthand any number of incredible things that intelligent applications of data – all of which now get put under the general-purpose label of “AI” – can accomplish and am enthusiastic about the opportunities it presents in the near and distant future. I fully believe that AI offers a prime example of Amara’s Law in action—we may overestimate its short-term impact but profoundly underestimate its long-term significance.
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