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With artificial intelligence and new technologies merging with business practices at such a fast pace, decoding the return on investment (ROI) can be a tricky task for Aussie businesses, big or small.
With the potential benefits clearly outlined when it comes to AI implementation, businesses have started fawning over these transformative technologies without fully understanding the path to reach those desired benefits.
Fabian Calle, managing director for small and medium businesses at SAP Concur Australia and New Zealand, said: “It’s the tried and tested saying: work smarter, not harder. It may be a cliché, but it’s true.”
“AI and automation can have a significant impact on how a business runs, especially when it comes to managing expense and invoice processes, which are universally known as complex and often frustrating tasks.”
As the eagerness to onboard this technology continues to grow, the pressure falls on the shoulders of financial managers to decode this complex equation so that their organisation can really capitalise on what is a huge investment.
This, however, is a tall task. The unique characteristics embedded in AI projects, paired with the ever-changing applications, and uncertainty make the traditional ROI calculation incredibly challenging to work out.
It’s crucial that businesses approach these technologies strategically to unlock the true value of AI and automation. SAP Concur offered some insights on how businesses can navigate certain approaches in their implementation that can help them achieve their desired ROI.
1. Comprehensive cost assessment
Businesses must account for a wide range of implementation costs, including data management, technology infrastructure, talent acquisition, training, change management, and user experience optimisation. Additionally, businesses need to factor in expenses related to ethical considerations, data security, regulatory compliance, and overcoming user scepticism.
2. Holistic ROI calculation
Beyond the obvious measurement of efficiency and productivity, ROI assessments for AI projects should incorporate a broader set of factors. While many AI efforts focus on driving short-term gains in these areas, businesses can achieve lasting differentiation by considering additional elements.
These may include quality improvements, innovation potential, enhanced compliance, fraud reduction, brand reputation enhancement, and the long-term benefits of a data-driven culture. User adoption rates, training effectiveness, and change management success are also critical elements in determining the overall success of an implementation.
3. Skill development and experience building
Internal expertise is a key determinant of AI project success. Businesses with more advanced AI capabilities can look beyond immediate productivity gains and cost reductions to uncover new insights and drive innovation. Investing in skill development and gaining experience with AI tools is essential for long-term success.
4. Phased approach and momentum building
Businesses embarking on their AI journey should focus on achieving simple, early wins to build evidence of tangible impact. Successful experiments should be scaled up quickly, leveraging cloud platforms where possible, to justify larger AI investments.
“Investing in AI and automation is a strategic move for long-term success. Early adopters will better adapt to changing market conditions and customer expectations.”
“AI and automation help businesses manage costs more effectively by automating expense tracking, analysing spending patterns, and optimising budget allocation, which reduces administrative burdens and enhances decision making,” Calle said.
Navigating this ever-changing landscape is new terrain for businesses, but getting it right during the implementation is imperative in the long term. Encouraging employees to focus on their creative and valued work while leveraging these advancing technologies to take over the more mundane or monotonous tasks should be the end goal for businesses when it comes to AI implementation.
“AI and automation touch so many aspects of a business, which adds complexity when trying to quantify their ROI,” Calle said.
“However, despite this challenge, the advantages are clear. By focusing on high-potential projects, securing early wins, and taking a holistic view of both costs and benefits, businesses of all sizes can unlock the true value of AI and automation, positioning themselves for long-term success.”
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