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Calculating the Return on Generative AI InvestmentCalculating the Return on Generative AI Investment

When looking at Gen AI’s promises of time savings, ask what employees will be doing with that time.

Irwin Lazar

January 23, 2025

4 Min Read

As companies progress with trying and deploying generative AI within their collaboration environment, IT and business leaders often struggle with determining ROI. While this struggle is amplified when the decision to roll out generative AI copilots and virtual assistants will requiring purchasing additional licenses, any tech decision-maker needs to be able to assess whether genAI capabilities are a net positive even when provided by collaboration vendors at no additional cost.

Measuring What Matters

Metrigy’s success methodology typically looks at three areas of ROI. These include:

  • Cost savings directly attributed to the use of a collaborative tool

  • Revenue increases, typically via improvements in customer service and better support for sales opportunities

  • Productivity gains generally associated with time savings

Our recently published Employee Engagement Optimization: 2025 global study of 400 organizations showed that just a third of participating companies are already measuring positive ROI for their generative AI deployments. However, a larger percentage of business and IT leaders are bullish on positive ROI, with 41% saying they expect future benefits from their use of generative AI. Just 11.5% say that generative AI is over-hyped and isn’t likely to deliver on its promise.

For those who do measure generative AI benefit, the most frequently measured metric is “time savings,” with 36.1% of respondents doing so already. However, an additional 50% of participating companies expect to measure time savings by the end of 2025.

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Time savings may come from a variety of factors including:

  • Reducing the time it takes to follow up on meeting action items

  • Enabling quick review of missed meetings

  • Summarizing chats, documents, emails, and video transcripts to quickly surface important information

  • Shortening the time it takes to compose emails or messages on chat platforms

  • Automating workflows

Is Time Savings Good Enough?

Though time savings is the most measured ROI component, it’s not the only one that matters. Companies may find additional value from closing more sales more quickly, reducing the need to hire staff by augmenting existing personnel with AI, or by improving marketing and sales campaigns and content development via application of generative AI tools.

Those who focus solely on time savings may wonder if time saved actually equals business benefit. What if, for example, that five hours a week one saves via using generative AI simply means five more hours to read social media or play games at work? Or, perhaps companies could use time savings generated via AI to reduce work hours?

Unfortunately, there’s no easy answer to that question. However, associated time savings with specific activities such as software development cycles, customer follow-up time, and reduction in time spent on company-specific repeatable activities often provide more beneficial information. Surveying employees to find out how they are using their time savings is another potential way to uncover unknown business benefits.

But What About Costs? What Are They?

As noted, most companies are not yet measuring ROI for their use of generative AI. We often find that companies who are taking advantage of free tools are less likely to worry about ROI. But even free isn’t necessarily free when one considers the need to manage AI from a governance, security, and potentially a compliance perspective. In our study, 71.1% of companies had an AI governance strategy in place by the end of 2024, with application of data privacy controls, testing AI response accuracy, security management, and compliance being the top components of their governance approach.

In addition, companies with the highest ROI for their generative AI investments often spend more time and money on training their employees to best utilize AI tools available to them. Successful companies are also more apt to monitor AI utilization to determine which employees are struggling to use AI tools and why. Training and management costs should be measured against demonstrated AI benefit as part of ROI calculation.

The Path Forward

Not every company will go through the effort of determining generative AI ROI but those that do are best positioned to not only uncover potential benefits, but to also address adoption shortcomings that limit AI’s utilization in future lines of business. Generative AI ROI assessment is critical to determine if the costs of buying and managing AI add-ons delivers value that exceeds cost.

About Metrigy: Metrigy is an innovative research and advisory firm focusing on the rapidly changing areas of workplace collaboration, digital workplace, digital transformation, customer experience and employee experience—along with several related technologies. Metrigy delivers strategic guidance and informative content, backed by primary research metrics and analysis, for technology providers and enterprise organizations

About the Author

Irwin Lazar

As president and principal analyst at Metrigy, Irwin Lazar develops and manages research projects, conducts and analyzes primary research, and advises enterprise and vendor clients on technology strategy, adoption and business metrics, Mr. Lazar is responsible for benchmarking the adoption and use of emerging technologies in the digital workplace, covering enterprise communications and collaboration as an industry analyst for over 20 years.

 

A Certified Information Systems Security Professional (CISSP) and sought-after speaker and author, Mr. Lazar is a blogger for NoJitter.com and contributor for SearchUnifiedCommunications.com writing on topics including team collaboration, UC, cloud, adoption, SD-WAN, CPaaS, WebRTC, and more. He is a frequent resource for the business and trade press and is a regular speaker at events such as Enterprise Connect, InfoComm, and FutureIT. In 2017 he was recognized as an Emerging Technologies Fellow by the IMCCA and InfoComm.

 

Mr. Lazar’s earlier background was in IP network and security architecture, design, and operations where he advised global organizations and held direct operational responsibility for worldwide voice and data networks.

 

Mr. Lazar holds an MBA from George Mason University and a Bachelor of Business Administration in Management Information Systems from Radford University where he received a commission as a Second Lieutenant in the U.S. Army Reserve, Ordnance Corps. He is a Certified Information Systems Security Professional (CISSP). Outside of Metrigy, Mr. Lazar has been active in Scouting for over ten years as a Scouting leader with Troop 1882 in Haymarket VA.

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