What are the best methods for measuring a generative AI project's impact on a business?

1 Define your goals and metrics

Before you start your generative AI project, you need to define your goals and metrics. What are you trying to achieve with your generative AI project? What are the key performance indicators (KPIs) that will show you if you are reaching your goals? How will you measure the quality, quantity, and diversity of your generative outputs? How will you compare them with your original data or your competitors' data? How will you track the feedback and satisfaction of your customers or stakeholders? By defining your goals and metrics, you will have a clear vision of what success looks like for your generative AI project and how to measure it.

2 Use quantitative and qualitative methods

To measure the impact of your generative AI project, you need to use both quantitative and qualitative methods. Quantitative methods are based on numerical data and statistics, such as accuracy, precision, recall, F1-score, or BLEU score. These methods can help you evaluate the technical performance and quality of your generative AI model and outputs. Qualitative methods are based on subjective data and opinions, such as surveys, interviews, focus groups, or user testing. These methods can help you understand the user experience and satisfaction, the emotional and cognitive responses, and the social and ethical implications of your generative AI project.

3 Compare with baselines and benchmarks

To measure the impact of your generative AI project, you need to compare it with baselines and benchmarks. Baselines are the existing or previous results or standards that you want to improve or surpass with your generative AI project. For example, you can compare your generative AI outputs with the original data or the human-generated outputs to see how much value or novelty you are adding. Benchmarks are the best or average results or standards that you want to match or exceed with your generative AI project. For example, you can compare your generative AI outputs with the state-of-the-art models or the industry leaders to see how competitive or innovative you are.

4 Analyze the business outcomes and impacts

To measure the impact of your generative AI project, you need to analyze the business outcomes and impacts. How does your generative AI project affect your business performance and growth? How does it contribute to your revenue, profit, cost, or market share? How does it enhance your brand image, reputation, or customer loyalty? How does it align with your mission, vision, or values? How does it support your strategic objectives, priorities, or initiatives? By analyzing the business outcomes and impacts, you will be able to quantify and qualify the value and benefits of your generative AI project for your business.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?