Assessing ROI – financial and operational impacts of LLMs
Assessing the ROI for implementing LLMs involves a comprehensive analysis of both the financial and operational impacts on an organization. Here’s how organizations typically approach this assessment.
Financial impact assessment
In the realm of financial impact assessment, organizations meticulously calculate cost savings and weigh them against revenue growth opportunities. They consider initial investment costs and aim to determine the payback period. Simultaneously, operational impact assessment evaluates efficiency gains, quality of service improvements, scalability, and the role of LLMs in fostering innovation and competitiveness.
The following are the financial impacts to take into consideration when assessing ROI:
- Cost savings:
- Reduction in labor costs: Organizations calculate the reduction in labor costs due to automation of tasks that were previously handled by employees
- Decrease in error...
