For almost a decade, SAP Concur has been leveraging artificial intelligence (AI) and machine learning (ML) in its spend management solutions. This gives us a unique perspective into what’s driving the rapid increase of AI discussions at the leadership tables of companies around the world.
What we’re seeing as organizations push to evaluate the ROI of AI initiatives and scale broader implementations, is that CFOs are eager to capitalize on the benefits quickly while keeping risks in check.
In fact, according to the 2024 SAP Concur CFO Insights survey, 51% of finance leaders are investing in AI, compared to just 15% in August 2023.1
It’s easy to understand why when you consider that AI captures 10X the number of errors and fraud and reduces audit time up to 90% when used for the initial investigation of expense reports.2
As interest surges, however, so do questions about planning, implementation, and measurement. Gartner predicts that by 2025, 30% of AI projects will be abandoned due to costs outweighing benefits.1 This sharp contrast highlights the need for finance leaders to ensure AI investments are both strategic and measurable.
With that in mind, let’s take a closer look at how you can best measure and maximize the ROI of AI.
Why Measuring AI ROI Is Complex
Calculating ROI for AI isn’t as simple as adding up cost savings. Traditional metrics often miss the broader benefits AI brings, such as quality improvement, innovation, and better compliance. Guy Melamed, CFO of Varonis, explains:
“We focus on measurable productivity gains, like expense reimbursement checks completed by AI. The goal isn’t always a large cost saving—sometimes just being cost-neutral is enough if it boosts job satisfaction and engagement.”
CFOs should broaden their frameworks to include these non-financial impacts, alongside employee satisfaction and brand reputation.
Aim for Early Wins with an Eye to the Future
For companies starting their AI journey, early wins are essential. Focus on automating straightforward processes or improving forecasting accuracy—areas where AI can show immediate results. Then, quickly roll out those successful experiments more widely— using cloud platforms where possible — to justify the large investments needed for AI.
But don’t stop at quick wins. Strategic, long-term investment in AI capabilities—like team training, cross-department collaboration, and R&D integration—is crucial for unlocking deeper value.
Did you know? 14 months is the average time it takes organizations to achieve ROI on AI investments after deployment.1
How Top Performers Implement AI
Based on a report by NewVantage Partners, 92% of large companies are achieving positive returns on AI investments, demonstrating the value of comprehensive, disciplined approaches.1
Their success comes down to three priorities:
- Data Quality and Management: Ensuring clean, accessible data forms the foundation of successful AI initiatives.
- Performance Tracking: Regularly assessing outcomes and adjusting strategies ensures investments remain aligned with goals.
- Security and Ethics: Addressing privacy concerns and adhering to ethical standards builds trust and mitigates risks.
The Human Element of AI Success
AI isn’t here to replace humans—it’s here to empower them. By automating repetitive tasks, AI frees professionals to focus on strategic, value-added work. This balance is particularly appealing to younger professionals, who prioritize meaningful contributions and work-life balance.
That said, a lack of skilled workers remains a significant challenge, with 52% of organizations identifying it as a hurdle to implementing AI. Collaboration across the C-suite—especially with CHROs and CTOs—is key to overcoming this gap.1
Navigating Challenges and Building Partnerships
The journey to maximizing AI ROI isn’t without hurdles. Companies must account for costs related to data infrastructure, training, and compliance with evolving regulations. Partnering with experienced AI providers, like SAP Concur, can simplify this process. By leveraging proven expertise and technology solutions, businesses can accelerate ROI while minimizing risks.
Next Step: Embrace AI’s Potential
AI’s impact is undeniable, but its true potential lies in a thoughtful, long-term approach to implementation and measurement. By blending financial metrics with qualitative insights and fostering a culture of innovation, CFOs can unlock AI’s transformative power.
Dive deeper into the statistics and best practices mentioned in this article by downloading SAP Concur’s ebook, How to Measure and Maximize the ROI of AI.