Measuring AI ROI – A CFO’s Guide to Smarter Investment

Quick takeaway: Done well, AI in finance delivers 3–5x ROI within three years. The key is knowing what to measure, how to track it, and how to balance hard numbers with the less tangible benefits.

What do we mean by AI ROI?

Put simply, AI ROI is the return you get from your investment in AI once you account for implementation costs. That means looking at hard metrics like cost savings and revenue growth, alongside softer wins like better decision-making, fewer errors, and stronger customer experience.

Why CFOs can’t afford to ignore it

According to BCG, firms that properly measure AI ROI see 32% higher returns than those without a framework. For CFOs, that’s not just a number on a spreadsheet – it’s the difference between AI being a cost centre and a competitive advantage.

How to measure AI ROI

1. Set your baseline: know where you’re starting from before you roll out AI.

2. Pick clear KPIs: tie them to business goals, not just tech performance.

3. Track direct impact: cost reductions, new revenue, productivity gains.

4. Don’t forget the costs: setup, training, and ongoing maintenance.

5. Account for the extras: indirect benefits like risk reduction or employee satisfaction.

6. Compare results regularly: use reporting cycles and feedback loops to stay on track.

What good ROI looks like

– Direct savings: JP Morgan’s COIN tool freed up 360,000 lawyer hours on contract review.

– Revenue gains: Goldman Sachs cut trade processing times by 50%, saving $15m a year.

– Risk management: Mastercard’s AI fraud system prevented $20bn in losses.

Building the business case

AI investments get green-lit when CFOs make the numbers clear and connect them to strategy. Best practice is to:

– Start with one or two specific use cases.

– Focus on measurable outcomes.

– Balance short-term efficiency gains with long-term scalability.

– Factor in risks and build in regular reviews.

The people side

AI adoption reshapes teams. CFOs need to plan for:

– New hires with AI, data, and analytics skills.

– Upskilling existing finance staff.

– Stronger partnerships with executive search to find transformation-ready leaders.

– Updating job descriptions to reflect hybrid finance-tech roles.

McKinsey research shows AI-powered forecasting improves accuracy by 25% while cutting analysis time by 40% – freeing people up to focus on strategy, not spreadsheets.

FAQs CFOs are asking

When do we see ROI? 
Initial gains usually appear within 6–12 months; full ROI within 18–24 months.

What’s the average return? 
Deloitte reports 3–5x ROI across three years for successful finance implementations.

How do you measure intangibles? 
Use proxies – engagement scores, customer feedback, error reduction rates.

What’s the minimum investment? 
Typically £100k–£500k for mid-sized finance teams.

How do we future-proof investments? 
Keep models updated, invest in staff training, and tie every AI initiative to core strategy.

TL;DR

– AI ROI = both numbers and nuance.

– The best firms see 3–5x ROI within three years.

– Measurement requires baselines, KPIs, and regular reviews.

– The right talent strategy is essential – hire and upskill for hybrid finance-tech skills.

Final thought

AI isn’t a magic bullet, but when CFOs measure it properly, the results speak for themselves: sharper forecasts, faster processes, happier teams, and tangible savings. The future of finance won’t just be digital – it’ll be smarter. Contact Cherry Professional to learn more.