finance

Why Is It so Hard to Measure the ROI of AI?

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Measuring the ROI of AI is challenging due to the complexity of business processes, long timelines for realizing benefits (such as drug development), and difficulties in establishing clear productivity baselines. Companies often face hidden and indirect costs related to AI deployment and find that efficiency gains may not translate directly to cost savings or revenue increases because work expands to fill available time and some industries’ business models (e.g., billable hours for lawyers) complicate quantification. Tools like AI-powered process mining and digital twins help reveal process inefficiencies and enable more precise tracking, but comprehensive ROI assessments remain elusive and may take years to materialize.

https://www.cio.com/article/4183502/why-is-it-so-hard-to-measure-the-roi-of-ai.html

CIOs Weather Role Change as AI Investments Come Into Focus

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CIOs are experiencing evolving responsibilities with a renewed focus on aligning IT strategy closely to business objectives, surpassing cybersecurity management as their top priority, according to Experis’s 2026 CIO Outlook report. While many CIOs see positive ROI from AI investments, challenges persist around balancing innovation with demonstrating clear business value, managing talent shortages, and ensuring AI initiatives are purpose-driven rather than exploratory. Successful tech leaders in this transition are those treating technology as a core business leadership function that integrates thoughtfully with organizational priorities and workforce enablement.

https://www.ciodive.com/news/CIO-role-change-AI-investments-ROI/822949/

Council Post: The CIO’s Rising Role In Financial Software Decisions: a New Era Of C-Suite Collaboration

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Healthcare AI often fails due to poor implementation, not flawed technology. Success requires aligning AI solutions with existing metrics, understanding the type of AI being implemented, and starting with small, measurable pilots. Effective implementation also involves integrating AI with existing systems, training for adoption, and building a clear ROI model before going live.

https://www.forbes.com/councils/forbestechcouncil/2026/01/20/the-cios-rising-role-in-financial-software-decisions-a-new-era-of-c-suite-collaboration/

Outdated Financial Theory Is Failing Us All: What CIOs Must Rethink About Risk, Return and Resilience

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Outdated financial theories like Modern Portfolio Theory (MPT) fail to address pressing systemic risks such as climate change and social inequality. CIOs must shift to system-level investing, recognizing the interconnectedness of portfolio performance and systemic health. Traditional metrics focus on short-term outcomes and overlook the feedback loops essential for sustainable investment. A new approach is needed that emphasizes the influence of investments on overall systems, fostering resilience and long-term value creation.

https://www.ai-cio.com/news/outdated-financial-theory-is-failing-us-all-what-cios-must-rethink-about-risk-return-and-resilience/

Is AI the Answer to Creating Resilient Banks and Financial Institutions?

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AI could enhance resilience in banks by improving compliance, minimizing downtime, and optimizing operations through predictive analytics and automation. Despite significant investment in AI, the financial sector sees low ROI, revealing a need for strategic alignment and refined implementation. Emphasizing a culture of continuous improvement and seamless integration while balancing automation with human oversight remains crucial for leveraging AI’s full potential in creating robust financial institutions.

https://financialit.net/blog/aiinbanking-financialresilience/ai-answer-creating-resilient-banks-and-financial-institutions

The CFO-CIO Partnership: Key to Driving AI Innovation

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CFO-CIO collaboration is crucial for AI innovation but faces challenges in measuring ROI and budget adequacy. A KPMG survey indicates differing responsibilities and perspectives on tech investments between these roles. Key insights suggest that aligned goals, clear roles, and open communication can enhance collaboration, drive business transformation, and optimize technology investments' impact.

https://kpmg.com/us/en/media/news/cfo-cio-partnership-innovation.html

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