Executives: First Principles Thinking Essential for AI ROI

Leading executives recently convened at Fortune Brainstorm Tech in Aspen, Colorado, to address why many companies struggle to achieve a return on investment (ROI) from artificial intelligence (AI).

Manoj Bohra, CTO at asset management firm State Street, identified the extensive "foundation work" as a significant hurdle, particularly in regulated industries. He stressed that establishing proper data governance and ensuring data is correctly positioned are crucial first steps. Bohra also advised mapping out workflows and processes before attempting automation, cautioning against short-term expectations for ROI, comparing it to the long-term assessment of infrastructure projects.

Deloitte CTO Bill Briggs noted that many businesses neglect the strategic "first principles work" of defining their AI objectives. He observed a tendency to rush AI use cases to scale to appear technologically advanced, often without a measurable impact on revenue or profit. Briggs argued that merely integrating AI into existing processes, rather than redesigning workflows with AI in mind, can amplify current inefficiencies.

Kathy Pham, Head of AI at ReviveHealth, underscored the importance of ensuring that business processes align with their original purpose. She explained that optimizing for incorrect objectives, or applying AI to processes that have become detached from their intended goal, can prevent AI from delivering value.

Stephen Balaban, co-founder and CTO of AI infrastructure firm Lambda, expressed skepticism about AI's current readiness for many enterprise use cases outside of software development. However, he acknowledged the rapid advancements, noting that AI agents have only recently become capable of autonomous software development, and advised companies to prepare for ongoing evolution in AI capabilities.

(Source: Fortune)