How to Talk AI ROI With Non-Financial Executives

Everyone, including the leaders within your organization, is buzzing about artificial intelligence. However, one of the burning questions that everyone wants to know is, will AI investments pay off? And if so, how long will it take?

Unfortunately, discussing the return on investment of artificial intelligence tools with non-financial executives can prove incredibly challenging. The result is that the real ROI of finance transformation gets lost in translation.

Yet, securing cross-functional buy-in for AI investments is essential. You can’t approach the AI opportunity with one foot in and one foot out. Instead, you need everyone to be on board. To bridge this gap, you must frame the ROI of artificial intelligence in clear, actionable terms that resonate across the entire C-suite.

Why AI ROI Matters

AI adoption in finance is accelerating. According to a PwC survey, 28% of CFOs report that their finance departments are already using artificial intelligence in forecasting.

Another 39% of CFOs report that their companies plan to use AI forecasting tools within the next 12 months. They are also relying on artificial intelligence for process automation, accounts payable and receivable, and predictive analytics.

Delaying AI adoption will put your business at a competitive disadvantage. However, justifying these investments requires demonstrating tangible benefits, especially when budgets are tight. Answering the C-suite’s questions about AI ROI will encourage your company’s leaders to take that leap.

Breaking down the AI ROI equation means translating your financial expertise into outcomes like efficiency, customer satisfaction, and market share. Those are the measurements that the C-suite cares about most.

Challenges in Communicating AI ROI

Why is communicating the return on investment of AI so hard? Here are the three obstacles you have to contend with:

Technical Complexity: AI concepts like machine learning or natural language processing can overwhelm non-technical audiences
Intangible Benefits: Benefits like “improved decision-making” sound more like marketing buzzwords than quantifiable benefits
Cross-Functional Misalignment: Teams may have conflicting priorities, such as marketing’s focus on engagement versus finance’s emphasis on cost savings

You need to address the diverse concerns and priorities of each group while showcasing the big-picture value of AI investments. This requires strategic communication.

A Framework for Effective Communication

To secure buy-in, you can use a three-step framework.

1. Quantify Tangible Benefits

Start with hard numbers, which are undeniable. For example, an AI-driven accounts payable system might reduce invoice processing time by 50%. Break that down into labor cost savings and reduced cash flow strain. Similarly, predictive analytics tools can improve cash flow forecasting accuracy by 20%, reducing your borrowing costs.

Use benchmarks from industry reports as a baseline for comparing your ROI to those achieved by other organizations. While you may not be able to match the industry average in every area, you should be close.

2. Translate to Business Outcomes

Link financial gains to operational or strategic goals. For instance, speeding up invoice processing can improve vendor relationships, which is a priority for supply chain leaders. Enhancing your forecasting capabilities promotes better inventory management, which aligns with the objectives of COOs.

When planning your presentation, include positive outcomes that appeal to each C-suite executive. Link these outcomes back to the big picture and use hard data wherever possible to ensure your value breakdown resonates across every department.

3. Simplify the Narrative

Avoid technical jargon. Remember, each member of the C-suite will have varying levels of technical knowledge regarding AI. Don’t waste time explaining algorithms. Use analogies instead.

Real-World Example

Here’s a look at how a mid-sized retailer may realize ROI by implementing an AI tool for demand forecasting. Imagine the CFO calculates that the tool reduces excess inventory by 15%, saving $500,000 annually. To present this to non-financial executives, the CFO frames the benefits as follows:

The $500,000 in savings strengthens our cash position and reduces our reliance on credit lines
Accurate forecasting minimizes the risk of stockouts and improves customer satisfaction
Better inventory aligns with promotional campaigns and can boost sales

This multi-faceted approach addresses finance, operations, and marketing concerns.

Common Objections and How You Can Overcome Them

Despite your best efforts, you will likely encounter some objections. Common concerns focus on costs, risks, and implementation headaches. Address them head-on with these strategies:

Cost: Highlight long-term savings and phased rollouts to manage costs
Risk: Emphasize the value of pilot programs to test AI in isolated use cases
Implementation: Partner with IT to ensure a seamless integration with existing systems

The goal is to address the C-suite’s objections in your presentation. This demonstrates that you’ve thought of everything and examined the AI ROI question from every major angle.

Embrace the Opportunities of Artificial Intelligence

Communicating AI ROI effectively allows you to embrace the many opportunities created by artificial intelligence. Use a combination of strategic storytelling and hard data to make your case.

Mobilizing the entire C-suite and the board will pave the way for AI adoption while positioning your business to compete in the changing tech landscape.