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This year saw emerging risks posed by AI , disastrous outages like the CrowdStrike incident , and surmounting software supply chain frailties , as well as the risk of cyberattacks and quantum computing breaking todays most advanced encryption algorithms. To respond, CIOs are doubling down on organizational resilience.
By Bryan Kirschner, Vice President, Strategy at DataStax From the Wall Street Journal to the World Economic Forum , it seems like everyone is talking about the urgency of demonstrating ROI from generative AI (genAI). GenAI itself can report week-on-week progress, putting it to work across your organization–including the ROI.
Half of the organizations have adopted Al, but most are still in the early stages of implementation or experimentation, testing the technologies on a small scale or in specific use-cases, as they work to overcome challenges of unclear ROI, insufficient Al-ready data and a lack of in-house Al expertise. Its going to vary dramatically.
So the organization as a whole has to have a clear way of measuring ROI, creating KPIs and OKRs or whatever framework theyre using. What ROI will AI deliver? Manry is mindful that some AI deployments will deliver modest ROIs and others will deliver significant returns.
BPS also adopts proactive thinking, a risk-based framework for strategic alignment and compliance with business objectives. Sondrio People’s Bank (BPS), for example, adopted business relationship management, which deals with translating requests from operational functions to IT and, vice versa, bringing IT into operational functions.
Leaders are putting real dollars behind agents, but with mounting pressure to demonstrate ROI, getting the value story right is critical. High expectations, but ROI challenges persist Despite significant investments, only 31% of organizations expect to measure generative AIs return on investment in the next six months.
This increases the risks that can arise during the implementation or management process. The risks of cloud computing have become a reality for every organization, be it small or large. The next part of our cloud computing risks list involves costs. In both cases, the return on investment (ROI) is healthy. Compliance.
“I have found very few companies who have found ROI with AI at all thus far,” he adds. The concern about calculating the ROI also rings true to Stuart King, CTO of cybersecurity consulting firm AnzenSage and developer of an AI-powered risk assessment tool for industrial facilities.
Jayesh Chaurasia, analyst, and Sudha Maheshwari, VP and research director, wrote in a blog post that businesses were drawn to AI implementations via the allure of quick wins and immediate ROI, but that led many to overlook the need for a comprehensive, long-term business strategy and effective data management practices.
While the ROI of any given AI project remains uncertain , one thing is becoming clear: CIOs will be spending a whole lot more on the technology in the years ahead. For the global risk advisor and insurance broker that includes use cases for drafting emails and documents, coding, translation, and client research.
Despite AI’s potential to transform businesses, many senior technology leaders find themselves wrestling with unpredictable expenses, uneven productivity gains, and growing risks as AI adoption scales, Gartner said. This creates new risks around data privacy, security, and consistency, making it harder for CIOs to maintain control.
To mitigate these risks, CIOs must implement AI-specific security protocols and conduct regular security audits, which take time, he added. The ROI dilemma IT leaders also face the ongoing challenge of demonstrating and calculating the return on investment (ROI) of technology initiatives.
The ROI of email marketing can be up to 4,400%. Machine learning algorithms can also automate the segmentation process, which reduces the risk and workload for marketing professionals. The post Machine Learning Maximizes Email Marketing ROI With List Segmentation appeared first on SmartData Collective.
Business risk (liabilities): “Our legacy systems increase our cybersecurity exposure by 40%.” So it’s essential to show the ROI to your business from the management of these costs. Aggressive and compressed transformation: Higher short-term investment for faster transformation, with clear ROI milestones.
One of the most important parameters for measuring the success of any technology implementation is the return on investment (ROI). Providing a compelling ROI on technology initiatives also puts CIOs in a stronger position for securing support and funds from the business for future projects. Align projects with business goals.
Yet it’s rare for any business leader not to say they wish they had a better ROI from their cloud spend. Using modern delivery practices, CIOs can optimize cloud operations with greater visibility into risk controls and vulnerabilities to encourage proactivity in addressing risks and defects, with a focus on value instead of capabilities.
Customer stakeholders are the people and companies that advertise on the platform, and are most concerned with ROI on their ad spend. Technical competence results in reduced risk and uncertainty. AI initiatives may also require significant considerations for governance, compliance, ethics, cost, and risk.
To fully leverage AI and analytics for achieving key business objectives and maximizing return on investment (ROI), modern data management is essential. Achieving ROI from AI requires both high-performance data management technology and a focused business strategy. Trying to clean the data and make it perfect is not going to work.
Assuming a technology can capture these risks will fail like many knowledge management solutions did in the 90s by trying to achieve the impossible. Measuring AI ROI As the complexity of deploying AI within the enterprise becomes more apparent in 2025, concerns over ROI will also grow.
We mentioned that many people use data analytics to maximize stock market investing returns , but it is also possible to improve the ROI of high yield investment trusts. High Yield Investment Trust ‘s primary objective is to generate a steady income stream for investors and to manage potential risks inherent in higher-yield investments.
Nowadays, management wants return on investment (ROI) calculations as part of any AI proposal. But how do you calculate ROI on something completely new and different—or on something as complex as AI, which brings with it lots of issues such as data privacy concerns, regulatory compliance complications, and all-new security risks?
Its the year organizations will move their AI initiatives into production and aim to achieve a return on investment (ROI). What are the associated risks and costs, including operational, reputational, and competitive? Track ROI and performance. In 2025, thats going to change. Turn to experts for guidance and support.
Whether marketers intend to reach new customers or persuade the existing ones, here are ways analytics is boosting returns on investment (ROI): 1. Reduced Risks. By optimizing your marketing campaigns, analytics helps you identify risks and quickly patch them. Increased Customer Growth.
But alongside its promise of significant rewards also comes significant costs and often unclear ROI. Ineffective cost management: Over 22% of IT executives highlight challenges in managing costs and developing clear ROI methodologies. See also: Gen AI in 2025: Playtime is over, time to get practical. million in 2025 to $7.45
For many years, AI was an experimental risk for companies. Recently, Dataiku spoke with Mike Gualtieri, VP & Principal Analyst at Forrester , in “The Future of AI and ROI for the Enterprise, featuring Forrester” webinar about the current state of the market and what AI success looks like going forward.
Noting potential pitfalls and best practices for an easy certification can help mitigate risk, maximize return on investment, and save money. To determine ROI post-ULA requires a clear understanding of what programs and license quantities you certified to Oracle to compare against Oracle’s list price to determine an actual discount rate.
While AI can be a powerful tool for achieving business objectives, it can also be a disastrous liability fraught with risks , another reason why organizations should take a deliberate and pragmatic approach to AI adoption. ROI quickly becomes DOA. Question #2: How will we make sure that we use AI responsibly?
AI pressures The rapid adoption of AI over the past two years has demonstrated a need for IT spending to be better connected to business results, Guarini says, as CIOs are under pressure to deliver ROI from AI projects. Energy use has become an important expense to monitor as well, along with more traditional IT costs and risk management.
And we’re at risk of being burned out.” If there are tools that are vetted, safe, and don’t pose security risks, and I can play around with them at my discretion, and if it helps me do my job better — great,” Woolley says. But there’s only so many projects we can meaningfully contribute to, and conversations we can be part of.”
Regardless of the driver of transformation, your companys culture, leadership, and operating practices must continuously improve to meet the demands of a globally competitive, faster-paced, and technology-enabled world with increasing security and other operational risks.
New features in any software often come with risks, bugs and performance issues that take time to work out. FOMO vs. ROI: Know the difference While the shiny new object is being paraded, dont forget that typically with each upgrade, some key capabilities are also phased out. Prioritizing stability and reliability are critical.
Our analytics capabilities identify potentially unsafe conditions so we can manage projects more safely and mitigate risks.” So they’ll be patient when it comes to ROI. As a construction company, Gilbane is in the business of managing risk. I suggest we give our business units a portal that helps them manage risk.”
Data is what economists would call a non-rival risk, non-depleting progenitor of assets,” Laney says. times more likely when they demonstrated ROI on their BI or data analytics investments. Product-based thinking means that there’s an owner in the business, managing it strategically with an ROI attitude.
According to a report by Dataversity , a growing number of hedge funds are utilizing data analytics to optimize their rick profiles and increase their ROI. The Imperative of Risk Mitigation A crucial element in the world of financial investments is effective hedge fund management.
In addition, many companies are still looking for the ROI in their AI projects , and SMBs hoping to reduce costs and cut headcount may instead need to hire prompt engineers to get value out of their investments, he adds. It is too risky, and its ROI is unproven.” SMBs need to get over those concerns or risk being left behind, he says.
Generative AI has seen faster and more widespread adoption than any other technology today, with many companies already seeing ROI and scaling up use cases into wide adoption. That means companies can use it on tough code problems, or large-scale project planning where risks have to be compared against each other.
Core challenges included complex and siloed business processes with a lot of customizations, out-of-sync data and processes, disparate and niche applications with inconsistent data and assets, and expensive and unsustainable data and risk management that lacked innovation and adaptability.
This is why many enterprises are seeing a lot of energy and excitement around use cases, yet are still struggling to realize ROI. So, to maximize the ROI of gen AI efforts and investments, it’s important to move from ad-hoc experimentation to a more purposeful strategy and systematic approach to implementation.
In many cases, small wins that show quick value may be a better bet than huge, high-risk projects, Miller advises. The cost “just compounds exponentially,” he adds. “It It really has the potential to go off the rails.” He also recommends that CIOs interact with peer groups to learn about AI projects that have been successful. “We
This can be great for technically-savvy customers but has the risk of not being sufficiently abstracted from AI costs to hold value over time, he says. While it may lack the direct ROI alignment of the outcome-based model, it simplifies the financial planning process for users who understand and manage technical resources.
In collaboration with our peers, we have a solid business sense that carefully weighs innovation and risk in order to gain valuable ROI while protecting the organization from all forms of risk associated with each project. If reversible, then there’s clearly less risk. What’s new and different today?
Overcoming this hurdle requires strong leadership and good data that will lead to effectively investing budgets in ways that yield a measurable ROI. Scope 3 shock: Scope 3 emissions make up 60% to 95% of the total carbon impact for most organizations. Businesses have no choice but to adapt to these new regulations.
The coordination tax: LLM outputs are often evaluated by nontechnical stakeholders (legal, brand, support) not just for functionality, but for tone, appropriateness, and risk. Hallucination risk : Add stronger grounding in retrieval or prompt modifications. What breaks your app in production isnt always what you tested for in dev!
The discussions address changing regulatory and compliance requirements, and reveal vulnerabilities and threats for risk mitigation.” Ongoing IT security strategy conversations should address the organization’s cyber risk and arrive at strategic objectives, Albrecht says. Are we achieving maximum ROI on our security investments?
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