Operational Economics

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The Real ROI Calculation Is Not What You Were Sold

AI Strategy  ·  4 min read

The Real ROI Calculation Is Not What You Were Sold

Model accuracy is not a business metric. It is a technical specification for how a model performs on a test dataset. The business value of an AI deployment is not determined by its accuracy score. It is determined by the quality of the decisions it makes in production, the financial consequences of the decisions it gets wrong, and the operational cost of maintaining it over time. Most AI investment cases are built on the first metric and silent on the second and third. That is why so many AI programmes struggle to demonstrate ROI.

19 Aug 2025 AI Strategy AI ROI
The Externalization Tax: What It Costs When AI Lives Away from the Transaction

AI Strategy  ·  4 min read

The Externalization Tax: What It Costs When AI Lives Away from the Transaction

Enterprises deploying AI outside their core operational systems are paying a cost they are not measuring. Every architectural hop between where a decision needs to happen and where the AI runs costs latency, governance overhead, security surface, and integration complexity. At transaction scale, those costs compound. The enterprises making AI architecture decisions without accounting for the externalization tax are systematically underestimating total cost and overestimating operational performance.

14 Jan 2025 AI Strategy Enterprise AI