When people talk about artificial intelligence (AI), one of the first things that comes up is efficiency. Automating tasks, reducing costs, and speeding up processes—these are the traditional hallmarks of AI’s value. O3 has helped companies see beyond the surface—revealing that true AI value lies not just in efficiency but in unlocking a tangible competitive edge and business growth..

AI has the power to fundamentally reshape how businesses grow, serve their customers, and innovate. The real return on investment (ROI) comes when organizations move beyond surface-level savings and start measuring the full spectrum of value AI can deliver—value that touches every part of the organization. Let’s dive into what we’re seeing!

Redefining ROI in the age of AI

Efficiency matters to your bottom line. But ROI today is about more than doing the same things faster or cheaper. It’s about doing new things—creating new revenue streams, designing more human-centric experiences, and building a more agile, competitive organization. In fact, according to Forrester’s State of AI Survey 2024, companies investing in generative AI are already seeing this broader impact: 51% reported top-line growth, 49% saw bottom-line benefits, and 41% achieved improvements in risk mitigation. Demonstrating that when AI is used strategically, it doesn’t just optimize—it transforms businesses.

Companies that limit their AI initiatives to back-office automation are leaving massive opportunities on the table. We’ve worked with organizations across industries that have used AI to:

Personalize customer experiences in real-time

AI can dynamically tailor content, offers, and product recommendations based on user behavior—boosting engagement, increasing conversions, and creating more relevant experiences across channels.

Anticipate user needs and improve retention

By identifying patterns in user behavior and preferences, AI helps predict when someone might disengage—enabling timely, proactive interventions that keep customers coming back.

Drive smarter decision-making with predictive analytics

AI surfaces trends and insights from data that might otherwise go unnoticed, empowering teams to make faster, more confident decisions that directly support growth and performance.

Accelerate product development cycles

With AI-driven insights from user feedback and behavior, teams can identify needs and prioritize features more effectively—shortening development timelines and delivering value faster.

Enhance employee performance and satisfaction

AI can reduce burnout by taking over repetitive tasks, providing intelligent assistance, and enhancing access to knowledge and tools—freeing employees to focus on high-impact work.

A good example that connects the dots on all these is work we’ve recently completed in partnership with Allied Pixel. We worked closely with the award winning firm to create an AI-powered personalization tool built for higher-ed that captures key prospect interests through conversational prompts in order to deliver real-time, tailored videos that address each student’s goals. As an Allied Pixel study shows, personalized video can lead to as much as a 170% increase in CTA clicks. That’s a huge improvement in overall engagement!

Additionally, data collected and summarized via AI through the conversational experience allows administrators and automated systems to more effectively respond to each request. It also shows how users interact with the tool and gives the product team deep insight into how to effectively improve the product over time.

5 questions to reflect on- Measuring what actually matters

To capture the full ROI of AI, organizations need to expand what they measure. Traditional metrics like cost savings and time reduction are still part of the story, but they don’t show the whole picture.

At O3, we guide our clients to look at broader, outcome-based KPIs, such as:

Customer lifetime value (CLV)

How is AI helping you better serve and retain your most valuable customers?

AI-driven programs have been shown to increase CLV by as much as 20%, proving that personalized, data-informed experiences can significantly deepen customer relationships and long-term value.

Conversion rates

Are personalized experiences or smarter recommendations driving more purchases or signups?

Implementing AI for personalized product recommendations has led to a 35% increase in sales for online retailers, as AI analyzes customer behavior to suggest relevant products, enhancing user engagement and conversion rates.

Employee engagement

Has AI helped reduce burnout by automating repetitive tasks or improving access to resources?

Forbes reported that 80% of employees who use AI tools report increased productivity, particularly in areas like writing assistance, workflow automation, and data analysis. Additionally, 29% of AI users feel more passionate about their work, highlighting the positive impact of AI on employee experience and engagement. ​

Innovation velocity

Are you bringing new products, features, or experiences to market faster with the help of AI?

Implementing AI in product development has enabled companies to reduce time-to-market by 20% to 40% and cut development costs by 20% to 30%, significantly enhancing innovation speed and efficiency. ​

Revenue attribution

Can you tie new income streams—like upsells, cross-sells, or digital products—directly to AI-powered insights?

Amazon reported that 35% of its revenue comes from upselling and cross-selling efforts facilitated by its AI-powered recommendation engine, which analyzes customer data to suggest relevant product upgrades and complementary items.

By aligning AI initiatives to core business objectives and tracking these types of KPIs, companies can understand the full scope of AI’s impact—not just what it saves but what it creates.

Our approach

O3’s team of experts specializes in helping organizations unlock growth and streamline operations through AI-powered customer experience strategies. We’ve even developed our own AI-readiness model for companies looking to answer the questions, “How can AI help my business?” Our approach is grounded in human-centered design, integrated technology, and actionable insights.

From designing intuitive AI-driven interfaces to integrating predictive analytics into core platforms, we work alongside our clients to ensure AI isn’t just bolted on—it’s embedded into the heart of their digital experiences. Most importantly, we make sure AI is aligned with the broader goals of the business. That’s how you move from experimenting with AI to driving real, sustained value.

About O3

O3 helps organizations unlock growth and streamline operations through smart strategy, human-centered design, and integrated technology. We’re also the force behind the 1682 Conference, where leaders explore how AI shapes profit and process. Learn more about our work and innovation.