A scorecard for the AI age
AI Summary: The article discusses the need for businesses to measure the effectiveness of AI investments through a new metric termed "Useful Intelligence per Dollar," which evaluates the value generated by AI relative to its costs. It emphasizes that traditional metrics, such as cost per token, are insufficient, as they do not account for the complexity and quality of tasks completed by AI systems. The article outlines a systematic approach for organizations to assess the actual work accomplished by AI, including the costs associated with successful task completion, and highlights the importance of defining clear outcomes for specific workflows. Additionally, it notes that more capable AI models may offer better value by completing tasks efficiently, thereby allowing human workers to focus on higher-level decision-making.