Boards are done funding AI on potential alone. Why leaders need to prove ROI for continued investment. (www.businessinsider.com)

AI investment is entering a critical new phase, shifting from pilot programs and initial experiments to a demand for demonstrable returns on investment (ROAI). Executives and boards are no longer satisfied with mere proof-of-concept; they require clear, measurable outcomes that illustrate AI's tangible value in scaling operations. A recent Ponemon Institute survey revealed that while 57% of IT leaders prioritize AI adoption, only 54% feel confident in showcasing the ROI of their initiatives. This highlights a significant disconnect between organizations' AI ambitions and their actual capacity to prove value. To successfully navigate this "prove-it" phase, leaders must focus on measuring the right success indicators, emphasizing impact over superficial activity metrics. Mature AI programs demonstrate value by showcasing improvements like enhanced decision-making, risk reduction, and operational reliability rather than solely immediate financial gains. By treating ROAI as a crucial criterion for funding and embedding readiness into AI initiatives from the outset, organizations can better foster trusted, repeatable outcomes. As AI becomes integral to core operations, the ability to articulate and prove ROI will determine which projects flourish and which remain stalled at the pilot stage.