AI CompendiumA public chart of the language
Adoption & Ops

ROI

also called Return on investment

Did it save more than it cost?

Definition

The value produced minus the cost of building and running it — where value is measured in time saved, tickets resolved, revenue, or risk reduced, and cost includes tokens, engineering and maintenance.

The most common failure is measuring the wrong thing: pilots that demo well and quietly consume tokens and maintenance with no workflow change. Attach the tool to a business metric before scaling it.

The honest version has a wide error bar, and it is worth saying so before someone produces a number. Attribution is genuinely hard, adoption is self-selected, and the measured effect depends on the task. What is defensible is a narrow claim about a specific workflow plus a direction of travel.

How people use it
Deciding whether to expand a pilot.
"It saves each engineer three hours a week. That is the case, not the demo, and it survives a sceptical CFO."
Worked examples

The measurement that had no control group

A team reports a large productivity gain after rolling out tooling.

The people who adopted it were the ones most motivated to make it work, which is a selection effect rather than a tool effect. Where a randomised comparison is not possible, say so and report the mechanism — time to first working version, review turnaround — rather than a headline percentage.

The value that was not developer speed

A team sees modest coding-time gains and a large drop in time to first useful answer.

Faster onboarding, quicker exploration of unfamiliar code and instant drafts of things nobody enjoyed writing are real returns. They do not show up in coding-time measurements, which is why narrow metrics miss where the value actually lands.

Sources
Related terms