Specializing in everything from legal research to marketing automation, AI has the potential to save you money, improve your efficiency and ultimately help your business generate better results – but that’s far from a guarantee.
How can your business decide if a particular AI tool is a worthwhile investment?
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Types of AI tools
There are tools that primarily focus on applying AI to a specific task, as well as tools that integrate elements of AI into their broader functioning. Generative AI tools can create written, visual and audio content from scratch. Other AI tools focus on productivity and automation, enabling workers to do more in less time. Analytics and insight-focused AI tools are also designed to process data and extract information faster and better than their human counterparts.
These tools have something to offer, and some attempt to combine elements of these categories under a singular umbrella of usability.
Some AI products combine elements of different types of AI tools for specific applications. Legal AI, for example, offers functionality like generative AI, which can help develop business contracts from scratch; productivity-focused AI, which can expedite legal research; and even data analytics, allowing lawyers and business owners with legal needs to examine and analyze big sets of data without getting bogged down into the details.
On the surface, many of these tools seem like perfect additions that can improve a business. But there are more nuances to consider.
Businesses often build their reputations on precision, integrity and consistency. Many business owners would understandably appreciate the idea of achieving greater productivity or completing their work in less time through AI, but even a small mistake in the context of the law can have catastrophic consequences, so many lawyers and business owners with legal needs are reluctant to embrace AI tools.
Many professionals in other areas share their concerns.
The AI hype bubble
Quite reasonably, experts have suggested that the recent hype around AI shares similarities with an economic bubble. In the past few years, we’ve seen an explosion in public interest in AI, and for understandable reasons. Major breakthroughs in terms of generative AI potential and natural language processing have enabled AI to do more than it’s ever been able to do.
However, this has led to massive potential overvaluing. People believe AI is capable of more than it is, and they sometimes trust it to do more than it actually can. On top of that, companies pursuing AI research and development are being overbought and overvalued, as people anticipate a total AI revolution that isn’t quite happening.
That’s not to say that AI’s long-term potential is limited or that we aren’t seeing massive advancements. Instead, it’s simply acknowledging that there’s a gap between public perception of AI and actual AI.
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Questions to help you evaluate AI tools
So, how can you tell if an AI tool is a good fit for your business?
The two most important categories you need to consider are fit and ROI.
On the fit side of the equation, you need to consider whether a particular tool is going to serve your organization in an appropriate, practical way. On the ROI side of the equation, you need to consider whether the costs of this tool will pay off with measurable benefits.
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To help you determine both sides of this equation, ask yourself the following:
- What problem is this solving? First, figure out whether this tool is solving a particular problem and what problem it’s solving. If you can’t pinpoint what this tool actually does, take a pass.
- Can this tool really do what it claims? Most AI tools are marketed as being groundbreaking, game-changing, revolutionary apps – but not all of them live up to those promises. Don’t just believe the marketing hype; try the tool out and see if it matches your expectations.
- How much time will this save? Instead of speculating, try crunching the numbers and determining exactly how much time this tool will save you. Again, do the math yourself; don’t just believe what the website tells you.
- How much value will this add? Including time savings, how much value will this add to your organization? Will you be able to offer new products and services to your customers? Do you have a path to generating new revenue?
- How much money will this cost? Obviously, you’ll also need to consider the cost of the tool. Many AI tools have the potential to help you achieve better results, but if they’re too expensive, they may not be worth the investment.
- How much time will this cost? It’s easy to calculate how much money a tool is going to cost you, but how much time is it going to cost you? Will you need to educate and train people how to use it? Will you need to practice troubleshooting and periodic retraining? Do you have to practice prompt engineering to get the results you want? How big of a pain will it be if this service goes down?
- How many other tools are we using? Many businesses are now struggling with AI tool overload. Having too many competing technological tools in the same environment can be overwhelming to users and excessively expensive. Most organizations are better off using a smaller number of more valuable tools, keeping things minimal and streamlined while simultaneously enabling more productivity and better results.
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With critical analysis, it should be much easier to determine whether a particular AI tool is worth buying for your business. Regardless of whether you believe AI is overhyped, undersold, or something in between, it’s important to treat every technological acquisition in your business with due diligence and serious consideration.
