Accelerate your customer’s gen AI journey with ROI best practices (PEX209)

Here is a detailed summary of the key takeaways from the video transcription, broken down into sections:

Why is Generative AI Important?

  • Generative AI has seen rapid adoption, with US companies spending 6x more on AI in 2022 compared to previous years.
  • Generative AI has reduced the barrier to innovation by providing pre-trained models that can be adapted with fewer examples, making it easier for organizations to get started.
  • There are many successful use cases across industries, such as improved conversion rates in retail, faster drug discovery, and reduced customer service costs in insurance.

Evaluating ROI for Generative AI

  • Identifying the right use case is crucial, as ROI can be a useful tool to validate the business case and gain buy-in from stakeholders.
  • ROI is not a one-time exercise, but an ongoing process that needs to be re-evaluated as the technology and requirements evolve.
  • Partners can play a critical role in helping customers understand and track ROI throughout the generative AI adoption journey.

Calculating ROI for Generative AI

  • ROI is calculated as the business value over the direct and indirect costs.

Direct Costs:

  • Choice of foundation model
  • Demand profile and inference options
  • Customization, such as fine-tuning or in-context learning

Indirect Costs:

  • Data storage and preparation
  • Engineering effort
  • Change management
  • Security and compliance
  • Training and upskilling

Sensitivity Analysis:

  • Evaluate multiple scenarios (base case, upside, downside) to understand the potential range of ROI.
  • Consider the time horizon (e.g., 3-5 years) to account for the initial high costs and the benefits of scaling and improving the solution over time.

Pitfalls to Avoid

  • Overestimating the speed to value, due to organizational or data readiness issues.
  • Overestimating the value potential, as generative AI is not perfect and may only address a portion of an existing automated process.
  • Over-engineering the use case, sacrificing agility and modularity.
  • Underestimating the importance of change management to drive user adoption and utilization.

Additional Resources

  • The AWS Generative AI Center of Excellence provides ROI calculators, pricing tools, and the latest market research for AWS Partners to support their generative AI adoption journey.
  • Customers are encouraged to engage with AWS Partners who can leverage these resources and their expertise to help evaluate and implement generative AI use cases.

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