As organizations look to capitalize on the power of artificial intelligence (AI), the question of return on investment (ROI) has become a critical consideration.
According to Vijay Guntur, CTO and Head of Ecosystems at HCLTech, the first step in ensuring a strong ROI is to carefully prioritize the most impactful use cases within the organization.
Guntur explained that many organizations are going through a process of identifying the business cases that can drive the greatest change and impact. “That is the first step in ensuring your return is realized,” he said.
However, Guntur cautioned that the true value of AI often extends far beyond the boundaries of a single organization. He pointed to the example of drug discovery, where AI has enabled pharmaceutical companies to develop more new drugs per year.
“The benefits of this go beyond just the organization. We've seen drug discovery become much more efficient, with companies able to develop 10 or 12 new drugs per year, compared to just five previously. While this is a clear financial benefit for the organization, there is a broader impact on society and the market, although this is much harder to quantify.”
Looking beyond financial metrics to productivity and efficiency
Guntur emphasized the need to look beyond just financial metrics when evaluating the ROI of AI investments. He highlighted the productivity-enhancing impacts of generative AI (GenAI), noting that these tools can deliver significant improvements in efficiency.
One example Guntur provided was in the healthcare sector, where AI-powered systems can streamline the handoff process between nurses. “If you can make that handoff process more efficient through AI, it can increase the overall efficiency of the [entire healthcare system]," he said.
Another example Guntur shared was in software development, where AI-powered tools can identify the most impactful regression test cases, reducing the time required for retesting.
“These tools can tell you, ‘Don't retest all 1,000 cases, just focus on the 37 that will have the biggest impact,’” he explained.
While the potential benefits of AI investments can be significant, Guntur acknowledged that there are often trade-offs to consider. “The trade-off is [sometimes] between prioritizing financial returns or being early to the market,” he said.
Real-world example of GenAI impact today... and on the horizon
To further illustrate the value of AI investments, Guntur shared a real-world example of how GenAI has driven impact beyond just financial metrics.
HCLTech worked with a medical device company to develop a system during the COVID-19 pandemic that could remotely administer shocks to patients with diseases like Parkinson's to ease any pain or discomfort. “It saves them a trip to the doctor, which is important because people with diseases like this are not mobile, and it also helps to reduce pain and bring a better quality of life.”
Another hypothetical example Guntur provided was the use of GenAI in predicting heart attacks 15 days in advance. This would have immense societal value, even if the financial benefits are difficult to quantify. “What is the value of knowing that a person is going to have a heart attack 15 days before they actually have it?” he asked the audience.
Building something like this requires an ecosystem of partners. In this case, Guntur said: “You need collaboration between a technology provider, a hyperscaler of some sort, a systems integrator like HCLTech and a medical university or research center.”
A holistic, system-level approach
To effectively capture the value of AI, Guntur stressed the importance of taking a holistic, system-level view.
“You should think about the entire organization or system that is producing an output, and then focus on where you can drive the most productivity impact,” he advised.
By considering the broader ecosystem benefits and productivity enhancements enabled by AI, organizations can unlock the true value of their investments. As Guntur concluded, “It's a lot more comprehensive” than just looking at the bottom line.
