Choosing the first useful AI uses

Industrial group

Decision studied

Fund uses whose value can be verified.

At an industrial plant, several teams were asking for AI tools. The engagement was to choose the first uses to fund.

Approach

  1. 01

    Frame

    The task was to choose two uses to deploy, with an initial investment of $63,000 CAD. Time saved was not enough: avoidable costs and quality also had to be documented.

  2. 02

    Investigate

    The inventory of five activities revealed external preparation costs, errors in document matching and tasks whose value remained hard to measure.

  3. 03

    Explain

    A lack of tools and poorly defined processes were examined. Some teams mainly needed shared rules before receiving an additional tool.

  4. 04

    Build

    We compared a general assistant for everyone, two targeted uses, and process modernization without AI, with the existing situation as the economic and quality baseline.

  5. 05

    Test

    Three uses were tested on controlled historical files. The thresholds set in advance were 25% less time and no increase in significant errors. Two uses reached 30% and 35% reductions; the third exceeded the accepted error level.

  6. 06

    Decide

    Management selected the help with document preparation and the matching of purchase documents. The third use was stopped, and human validations were kept.

  7. 07

    Steer

    At six months, external spending and avoidable error costs had decreased less than expected. Management adjusted the forecast and required two additional months of data before any extension.

Test results

Error below accepted thresholdError above accepted thresholdThreshold: 25%0%10%20%30%40%Use case A: 30%Use case B: 35%Use case C: time saved not published,so no point is plotted on the axis.Time saved measured (horizontal axis)
Time saved per use case, threshold of 25%. Two use cases reach 30% and 35% without a significant rise in errors; the third exceeds the accepted error level.

What AI contributed

AI helped me inventory the tasks and draft the test protocols. In the selected uses, it processes documents; teams remain responsible for validations and actions.

Business model (projection)

The projection counts $36,000 of avoided external spending and $24,000 of avoided error costs per year, with no overlap. Tools, ongoing training and controls cost $18,000 per year.

Annual projection for this case
Initial investment$63,000 CAD
Annual gains$60,000 CAD
Costs to subtract$18,000 CAD
Net annual gain$42,000 CAD
Simple payback18 months (at steady state)
Prudent scenario$12,000 CAD net, payback in 63 months

Annual projection built from the engagement results. It is not a guarantee of performance.

A comparable challenge?

Describe the decision to make and the data available. I will suggest an approach to prepare it and the evidence to gather before deciding.

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