Why Business Value is the Wrong Metric for AI Projects

Why Business Value is the Wrong Metric for AI Projects

Picture this: You're a commercial real estate developer. Everyone advises you to pick the project with the highest rental or purchase yields. Sounds logical, right? But, when you dig deeper.

  • What if your foundation can't support the structure?
  • What if you don't have the specialized crews needed?
  • What if your building materials aren't readily available?

This is exactly what's happening in enterprise AI right now.

Every Friday morning, I deliver 1 actionable insight to help you navigate the post-AI landscape, simplifying complex transitions into a clear path for business impact. You can click here to subscribe.

I've spent over a decade deploying AI applications across Fortune 500 companies, and I keep seeing the same mistake: organizations choosing AI projects based purely on business value.

It's like choosing to build a luxury high-rise without checking if you have the right foundation, expertise, or materials – it looks great in the proposal, but often crumbles in reality.

I was brought in to assess a company's AI strategy. They had 12 use cases, all with compelling business value calculations. The management consulting firm that developed them had even put million-dollar figures next to each one. It was so irresistible, but sadly, misleading.?

After digging deeper, I shared the uncomfortable truth: 9 of those 12 projects were actually impossible to implement with their current resources.?

Business value is an alluring but dangerous metric when used alone.

After years of face-planting (yes, I've got the scraped knees to prove it), I developed what I call the Criticality-Complexity Matrix.

This framework is copyrighted: ? 2025 Sol Rashidi. All rights reserved.

Here's how it works:

Criticality Questions To Ask (this is a subset and not a complete list):

  • Is there an imminent threat from competitors?
  • Are regulations and fines looming?
  • Are you losing market share?
  • Can you quantify the immediate impact?

Complexity Questions To Ask (this is a subset and not a complete list):

  • Do you have the basic infrastructure?
  • Is your data accessible and usable?
  • Do you have the right talent available?
  • Can your organization adapt operationally?

Then each question gets a weight, and that weight is given based on the answer given - and through a simple formula it gets plotted on a quadrant that lets you visually see which use cases are:

  • No Brainers (can easily be executed)
  • Avoid (cannot be executed)
  • Requires Planning (can be executed but it’s complicated and requires time and investments)
  • Optional (only pursue but for exceptional reasons)

The full walkthrough of the Criticality-Complexity Matrix is in my bestselling book - Your AI Survival Guide. Check it out, and I’m happy to chat if you’re looking for some help with your AI strategy.?

The results often surprise executives – what looked like a high-value project suddenly reveals itself as a high-complexity nightmare waiting to happen

Achievement creates momentum.

Success in AI isn't about chasing the biggest numbers – it's about understanding what your organization can realistically execute and start building from there.

Just like in real estate development, you don't break ground on a luxury high-rise for your first project. You start with manageable developments, perfect your construction processes, and build a reliable team. Then, as your capabilities grow, you can tackle those more ambitious towers on the horizon.

Let me know if this resonates with your experience. :) What metrics do you use to evaluate AI projects?

Every Friday morning, I deliver 1 actionable insight to help you navigate the post-AI landscape, simplifying complex transitions into a clear path for business impact. You can click here to subscribe.

Sol Rashidi, MBA... You have me thinking that I'm grateful not to be a commercial real estate developer... but I'd tackle an AI Strategy challenge any day with your Criticality-Complexity Matrix... a framework that is copyrighted: ? 2025 Sol Rashidi and with All rights reserved.

Your insights on the complexities of project selection are spot on. It's crucial to evaluate not only the immediate returns but also the foundational capabilities and resources available. In the realm of enterprise AI, a similar approach is essential; understanding the limitations and readiness of your infrastructure can determine long-term success. How do you think developers can better integrate these considerations into their decision-making processes?

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Roman Erlacher

Global Data & AI Strategy @ NovaTaste - I build DIGITAL, DATA & AI capabilities that help businesses create value

1 周

Great insight Sol Rashidi, MBA , thank you for sharing. One approach I applied successfully is an assessment based on impact and feasibility. This approach prioritizes AI projects based on their potential business value (impact) and whether they are realistically achievable (feasibility). As you correctly pointed out in one of your comments, value can come in multiple flavours. Feasibility considers factors like technical readiness, data availability, and organizational resources. Your framework replaces the feasibility assessment with two dimensions, risk (criticality) and difficulty (complexity), right? While I really like bringing in a risk lens, why do you think the difficulty of the problem solution should be an assessment criteria? Do you assume that every solution and capability is fully built in-house?

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colossis.io AI fixes this (AI Virtual Staging) Enterprise AI faces foundational challenges.

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Bruce LaDuke

Associate Director Medicare Reconciliation at Humana

2 周

And the project aims to build a fake apartment building in a Chinese ghost city.

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