Business

AI Business Case

Definition

A structured argument for an AI investment that quantifies expected benefits (revenue uplift, cost reduction, risk mitigation), costs (build, run, compliance), risks, and strategic alignment. A robust AI business case is the gateway to executive and board approval.

Related Terms

AI ROI

The return on investment from an AI initiative, measured as the ratio of net benefit to total investment over a defined period. AI ROI is notoriously hard to quantify upfront but is increasingly demanded by CFOs; it spans hard savings (labour automation), soft gains (decision quality), and risk-adjusted value.

AI TCO (Total Cost of Ownership)

The comprehensive cost of an AI system over its full lifecycle, including model development, data preparation, infrastructure, licensing, monitoring, compliance, maintenance, and eventual decommissioning. TCO analysis often reveals that inference and compliance costs dwarf initial build costs.

AI Roadmap

A time-sequenced plan that maps AI initiatives to business priorities, dependencies, resource requirements, and expected outcomes. A good roadmap balances quick wins that build momentum with strategic bets that transform core business processes.

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Product Decision Review

Knowing the Terms Is Step One. Applying Them Is Step Two.

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