Question
A company has a portfolio of AI initiatives at different stages of development.
You need to recommend a structured approach to evaluating the return on AI investment (ROAI) across all the initiatives. The solution must balance immediate results with long-term values and strategic innovations.
What should you include in the recommendation?
- A. a simple cost and benefit analysis
- B. a horizon-based framework Correct
- C. the internal rate of return (IRR) function
- D. a prioritization grid
Explanation
According to Microsoft's guidance on evaluating AI investments, a horizon-based framework (Option B) is recommended for balancing immediate results with long-term strategic innovations and values. This approach categorizes initiatives into different time horizons—short, medium, and long term—to effectively assess their potential impact and align them with business goals.
