Return on investment (ROI) compares the financial or economic gain from an investment with its cost. In AI product work, it turns a proposed capability into an outcome-based case: expected revenue, cost reduction, efficiency, retention, or other measurable value. section 12.2.1 section 2.3.1
A credible ROI case connects the investment to decisions and assumptions:
- Define the business problem and identify the KPIs it should affect. section 12.2.1
- Estimate benefits using explicit assumptions about adoption, pricing, efficiency, or cost reduction. section 12.2.1 section 12.4
- Validate user impact, technical feasibility, market demand, and regulatory constraints before committing substantial resources. section 2.3.1
Inventory optimization
An inventory optimization feature could reduce waste and support a premium pricing tier. If 20% of top-tier clients adopt it in the first year and each produces a $50,000 upsell, the projected result is $2 million in additional annual recurring revenue—provided the launch stays on schedule. The estimate gives executives a basis for deciding whether to fund a pilot. section 12.2.1
