Let me ask you a question: When was the last time you calculated the return on investment (ROI) of your email? Or the Internet? Did you ever sit down and crunch numbers to figure out if the World Wide Web was “worth it”? Of course not. These technologies weren’t about efficiency; they were about reinventing the way we live, work, and connect. They revolutionised the way we live, work, and interact, making it invaluable and near indispensable. They were foundational. They changed the game.
I've seen firsthand how businesses are approaching artificial intelligence (AI). And frankly, too many are treating it like a glorified cost-cutting exercise. They're asking, "How many jobs can we automate?" "How much efficiency can we squeeze out?" They’re chasing pennies when they should be reaching for the stars.
If at all, AI will likely help create new topline opportunities by creating new businesses that are driven by AI and improving bottom lines by simplifying certain human touchpoints, thinking (manual steps), and automating some decision systems.
Why ARE we obsessing over ROI then, when it comes to AI?
Let’s be honest: the traditional ROI mindset is a roadblock to innovation. It’s like trying to measure the value of electricity by counting how many candles it replaces. Sure, AI can make processes faster, cheaper, and more efficient. But if that’s all we’re using it for, we’re missing the point entirely. AI isn’t just a better calculator; it’s a moonshot machine. It’s not about fixing what’s broken — it’s about imagining what’s possible.
Here’s the problem with focusing on ROI: it keeps us stuck in the efficiency trap. We end up using AI to tweak existing processes — automating a few tasks, cutting a few costs, maybe shaving a few seconds off a workflow. And while that’s great, it’s not transformative. It’s like using a Ferrari to drive to the grocery store. Sure, you’ll get there faster, but you’re not exactly unlocking the car’s full potential.
Efficiency is a speed breaker, not a destination. If we keep measuring AI’s success by how much time or money it saves, we’ll never see its true power. AI isn’t here to make old systems work better; it’s here to create entirely new systems. It’s not about doing the same things cheaper—it’s about doing things we’ve never done before.
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Let’s revisit the Internet for a moment. When it first emerged, no one asked, “What’s the ROI of this World Wide Web?” Instead, they asked, “What can we build with it?” The Internet wasn’t just a tool; it was a platform for reinvention. It gave us e-commerce, social media, streaming, and countless other industries that didn’t exist before. Add to this, the ability to remotely work during the pandemic. It wasn’t about optimising the status quo; it was about rewriting the rules, read, revolutionising human lives.
AI is the same. It’s not a tool; it’s a foundational capability. It’s the scaffolding for a new era of business models, customer experiences, and societal shifts. If we keep measuring AI by ROI, we’re treating it like a fancy spreadsheet. But AI isn’t a spreadsheet—it’s a fresh new canvas.
Even though they may have been initially viewed as expenses with uncertain returns, would we have any breakthroughs like electricity to air travel to the internet today? Probably not. The same logic applies to AI. The enterprises that win in the AI era won’t be the ones that treat it as an efficiency tool. They’ll be the ones that embrace it as a foundational capability and rethink how they operate — how can it create new revenue streams? How can it redefine customer experiences? How can it solve problems we didn’t even know we had?
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Here’s the thing: AI isn’t just a technology; it’s the alchemy behind the next golden business opportunity. Take healthcare, for example. AI isn’t just helping doctors read X-rays faster; it’s enabling personalised medicine, predictive diagnostics, and even AI-driven drug discovery. These aren’t efficiency gains—they’re entirely new ways of delivering healthcare.
Or consider retail. AI isn’t just optimising supply chains; it’s creating hyper-personalised shopping experiences, virtual try-ons, and AI-powered styling assistants. These aren’t incremental improvements —they’re game-changing innovations.
The question isn’t, “What’s the ROI of AI?” The question is, “What new business models can AI create?”
So, here’s my take: enterprises need to dump the ROI mindset when it comes to AI. Instead of asking, “What will the annual returns be?” we should be asking, “What can this create?” Instead of measuring efficiency, we should be measuring potential.
This isn’t about throwing money at every shiny AI tool that comes along. It’s about thinking bigger. It’s about investing in AI as a foundational capability—a platform for reinvention. It’s about embracing moonshots, not looking at incremental milestones.
Because here’s the truth: the companies that win in the AI era won’t be the ones that use it to cut costs. They’ll be the ones that use it to create value in ways no one else has imagined.
So, let’s stop counting pennies and start chasing possibilities. Let’s stop asking, “What’s the ROI?” and start asking, “What’s next?”
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After all, the Internet didn’t change the world because it was efficient. It changed the world because it was revolutionary. And AI? AI is no different.
Let’s not just use it. Let’s invent with it.
Neelakantan Venkataraman is vice president and global head of the Cloud and Edge Business at Tata Communications
