Business strategies for a successful gen AI solution · Topic 2 of 4

Measuring the Impact of Gen AI

How to measure the impact of gen AI: baselines, KPIs for productivity, cost, revenue, quality and experience, adoption, and pilots with control groups.

  • 3 min
In a nutshell
  • Set a baseline before launch.
  • KPIs must match business goals: productivity, cost, revenue, quality, customer and employee experience, adoption, risk.
  • Measure fairly with control groups, A/B tests and human evaluation.

What it is

Leaders must show that gen AI creates value, decide which initiatives to scale, and stop those that do not work. That requires measuring impact: setting a baseline, choosing key performance indicators (KPIs) tied to business goals, tracking adoption, and comparing results fairly.

Baselinebefore gen AIDefine KPIstied to goalsPilotcompare with controlMeasurevalue and adoptionDecidescale, change or stop

How it works

Start with a baseline

You cannot show improvement without knowing the starting point. Before launch, record current performance: how long a task takes, what it costs, error rates, customer satisfaction. Then measure the same things after.

Categories of KPIs

CategoryExample KPIs
Productivity and efficiencyTime saved per task, cases handled per agent, time to first draft
CostCost per transaction, cost per resolved case, reduction in outsourcing
Revenue and growthConversion rate, revenue from new AI-enabled products, average order value
QualityAccuracy, error and rework rates, groundedness of answers
Customer experienceCustomer satisfaction (CSAT), net promoter score, resolution time
Employee experienceEmployee satisfaction, time spent on high-value work
AdoptionActive users, usage frequency, share of eligible tasks using the tool
Risk and safetyPolicy violations, incidents, blocked unsafe outputs
Exam tip

Pick KPIs that match the original goal. If the goal was faster customer service, measure resolution time and satisfaction, not the number of prompts sent.

Measuring fairly

TechniqueWhat it does
Pilot with a control groupCompare a group using gen AI with a similar group that does not
A/B testingShow different versions to different users and compare outcomes
Before and after comparisonCompare against the baseline, accounting for seasonal changes
User feedbackSurveys and ratings capture perceived quality and usefulness
Human evaluation of outputsExperts score samples of outputs for quality and accuracy

Leading and lagging indicators

Leading indicators move early: adoption, usage, user satisfaction. Lagging indicators take longer: cost savings, revenue, retention. Track both. Low adoption early is a warning that lagging benefits will not arrive, and usually points to training or workflow problems rather than to the model.

Return on investment

Compare the value (time saved multiplied by labor cost, extra revenue, reduced errors) with the total cost (licenses or usage, development, data preparation, training, change management, ongoing monitoring). Include ongoing costs, not only the build.

A worked scenario

A support center pilots Agent Assist with half its agents (the other half is the control group). The baseline average handle time is 9 minutes. After six weeks, the pilot group averages 7 minutes with stable customer satisfaction, and adoption is 85 percent of eligible conversations. Costs per contact fall, so leadership approves scaling, and adds a KPI for quality by reviewing a sample of conversations each week.

How the exam asks about this

  • "How do we know the improvement came from gen AI?" Compare with a control group or baseline.
  • "Which KPI fits a goal of faster service?" Resolution or handle time.
  • "Adoption is low after launch." Investigate training, workflow fit and change management.
  • "What is a leading indicator?" Adoption or usage, which moves before financial results.

What to remember for the exam

  • Set a baseline before launch.
  • KPIs must match business goals: productivity, cost, revenue, quality, customer and employee experience, adoption, risk.
  • Measure fairly with control groups, A/B tests and human evaluation.
  • Track leading indicators (adoption) and lagging indicators (financial results).
  • ROI includes all ongoing costs.
Watch out

Usage alone is not value. A tool can be used heavily without improving the business outcome it was meant to change.

Common mistakes

Measuring only technical metrics. Leaders need business outcomes.

No baseline. Without one, improvement cannot be proven.

Ignoring adoption. Benefits depend on people using the tool in their work.

Check yourself

  • Why set a baseline before launching a gen AI tool?

    To compare performance after launch with the starting point and prove improvement.

  • What is a control group used for?

    To compare a group using gen AI with a similar group that is not, isolating the effect of the tool.

  • Give an example of a leading indicator.

    Adoption or usage rate of the gen AI tool.

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