Choosing the first useful AI uses
Industrial group
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
- 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.
- 02
Investigate
The inventory of five activities revealed external preparation costs, errors in document matching and tasks whose value remained hard to measure.
- 03
Explain
A lack of tools and poorly defined processes were examined. Some teams mainly needed shared rules before receiving an additional tool.
- 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.
- 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.
- 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.
- 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
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.
| Initial investment | $63,000 CAD |
|---|---|
| Annual gains | $60,000 CAD |
| Costs to subtract | $18,000 CAD |
| Net annual gain | $42,000 CAD |
| Simple payback | 18 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.
Let's talk strategy