Measuring AI Effectiveness in Enterprises

Measuring AI Use Becomes a Business Requirement

As enterprises increasingly integrate artificial intelligence (AI) tools into their daily operations, the need for effective measurement and governance has become a pressing business requirement. Organizations are utilizing a myriad of AI applications for tasks ranging from code generation and analytics to customer support and internal research. However, oversight of these tools remains inconsistent across various roles, functions, and industries.

The Visibility Gap

A recent survey highlights a significant discrepancy in perceptions of AI visibility within organizations. Executives often express confidence in their understanding of AI activities, while directors and managers who are closer to daily operations report a contrasting reality. This results in a 16-point gap in confidence regarding AI visibility, a trend that is evident across different industries and company sizes.

Shadow AI Usage

Another contributing factor to this disconnect is shadow AI usage. More than one-fifth of leaders identify the use of personal or unsanctioned AI tools by employees as a barrier to success. Interestingly, most leaders reporting this barrier also express high confidence in their visibility of AI activities. While tool procurement can provide insights into licenses acquired, it offers limited visibility into daily usage patterns.

Executive vs. Operational Perspectives

Russ Fradin, CEO of a leading research firm, pointed out, “The C-suite believes AI is visible, valuable, and under control, while adoption is racing ahead of measurement, and governance is inconsistent.” This misalignment indicates that until enterprises can organize their efforts around real-time data, AI may pose both a strategic asset and a liability.

The Tool Landscape

Most enterprises today rely on multiple AI products to enhance their operations. Organizations that report stronger returns typically utilize an average of 2.7 tools, significantly more than the 1.1 tools used by lower-performing peers. These specialized tools cater to various workflows such as software development, automation, and content generation. However, this diversification can lead to redundancy and budget waste as overlapping tools are often seen as unnecessary expenses.

Inventory and Governance Challenges

Despite the growing adoption of AI tools, only 38 percent of organizations maintain a comprehensive inventory of AI applications in use. This lack of visibility complicates governance, budgeting, and risk management, particularly as regulations such as ISO 42001 necessitate continuous awareness of deployed systems.

Return on Investment by Sector

Return on investment (ROI) from AI tools varies significantly across sectors. Industries such as retail, software, manufacturing, and telecommunications report a high likelihood of realizing ROI within six months. In contrast, sectors like hospitality and healthcare tend to report lower expectations, largely due to the structural complexities behind their workflows.

Job Function Insights

Results also differ by job function. IT teams, for instance, report the strongest outcomes and the highest confidence in both visibility and ROI. They leverage AI to generate code, automate infrastructure, and accelerate delivery, yielding measurable results in deployment frequency and system uptime. Conversely, customer support roles exhibit lower confidence and ROI, despite heavy investments in AI tools like chatbots.

Understanding Productivity Gains

Most workers report only modest time savings from AI, with over 85 percent indicating savings of less than 10 hours per month. Only a small group of power users—approximately six percent of the workforce—claim to save more than 20 hours per month, engaging across multiple tools for advanced capabilities. Training is closely correlated with proficiency, where organizations with formal AI training programs report higher skill levels and productivity gains.

Structural Measurement Issues

A lack of responsibility for AI measurement is evident, with 30 percent of respondents noting gaps in accountability. Fragmented ownership across teams exacerbates the situation, although governance policies are present in most organizations. About 69 percent have AI risk and compliance policies; however, many lack visibility into adoption rates and risk exposure.

Conclusion

The current state of AI utilization within enterprises underscores the need for comprehensive measurement and governance strategies. As organizations continue to adopt multiple AI tools, understanding their effectiveness and aligning them with business outcomes will be critical for leveraging AI as a strategic asset.

More Insights

Revolutionizing Drone Regulations: The EU AI Act Explained

The EU AI Act represents a significant regulatory framework that aims to address the challenges posed by artificial intelligence technologies in various sectors, including the burgeoning field of...

Revolutionizing Drone Regulations: The EU AI Act Explained

The EU AI Act represents a significant regulatory framework that aims to address the challenges posed by artificial intelligence technologies in various sectors, including the burgeoning field of...

Embracing Responsible AI to Mitigate Legal Risks

Businesses must prioritize responsible AI as a frontline defense against legal, financial, and reputational risks, particularly in understanding data lineage. Ignoring these responsibilities could...

AI Governance: Addressing the Shadow IT Challenge

AI tools are rapidly transforming workplace operations, but much of their adoption is happening without proper oversight, leading to the rise of shadow AI as a security concern. Organizations need to...

EU Delays AI Act Implementation to 2027 Amid Industry Pressure

The EU plans to delay the enforcement of high-risk duties in the AI Act until late 2027, allowing companies more time to comply with the regulations. However, this move has drawn criticism from rights...

White House Challenges GAIN AI Act Amid Nvidia Export Controversy

The White House is pushing back against the bipartisan GAIN AI Act, which aims to prioritize U.S. companies in acquiring advanced AI chips. This resistance reflects a strategic decision to maintain...

Experts Warn of EU AI Act’s Impact on Medtech Innovation

Experts at the 2025 European Digital Technology and Software conference expressed concerns that the EU AI Act could hinder the launch of new medtech products in the European market. They emphasized...

Ethical AI: Transforming Compliance into Innovation

Enterprises are racing to innovate with artificial intelligence, often without the proper compliance measures in place. By embedding privacy and ethics into the development lifecycle, organizations...

AI Hiring Compliance Risks Uncovered

Artificial intelligence is reshaping recruitment, with the percentage of HR leaders using generative AI increasing from 19% to 61% between 2023 and 2025. However, this efficiency comes with legal...