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Measure AI ROI

5 min read

Eng Manager

You're closest to the work. Velocity, cycle time, bug escape rate — you have the data. Feed it up. Make the case.

Tech Lead

Technical metrics: PR throughput, review time, time-to-first-deploy. Pick 2-3. Track before/after. That's the proof.

Tpm

You already track delivery. Add an AI dimension: are we shipping faster? Same quality? Your roadmap data tells the story.

Measure AI ROI

TL;DR

  • Leadership wants proof. "We're using AI" isn't enough. "We're shipping 15% faster with the same quality" is.
  • Pick 2-3 metrics. Track before and after. Qualitative is OK at first — "teams report faster turnaround" — but move to quantitative when you can.
  • David needs numbers for the board. Here's how to get them.

"You're spending on AI tools. What's the return?" That question is coming. Have an answer.

Metrics That Matter

Velocity / Throughput

  • Story points per sprint, PRs merged per week, features shipped per quarter. Before AI adoption vs. after. Simple. Defensible.

Cycle Time

  • Time from "ready to code" to "deployed." If AI speeds implementation, cycle time should drop. Track it.

Quality

  • Bug escape rate, production incidents, review feedback. AI shouldn't hurt quality. If it does, that's a signal to fix process, not to cut AI.

Adoption

  • % of engineers using AI tools, frequency, workflows. Adoption is leading; impact is lagging. Both matter.

The Before/After Comparison

You need a baseline. If you're just starting:

  • Measure now. Sprint velocity, cycle time, whatever you track.
  • Run the pilot. 4-6 weeks.
  • Measure again. Compare.

Even a 10% improvement is a story. "We're doing more with the same team." That's the narrative.

Don't Over-Promise

"AI will 2x productivity" is a trap. Maybe it does. Maybe it doesn't. Report what you see. If the pilot shows 5%, say 5%. Trust compounds when you're honest.

Quick Check

Leadership asks: 'You're spending on AI tools. What's the return?' What's the RIGHT answer?

You're spending on Cursor, Copilot, APIs. Board asks for ROI. You don't have a baseline. You can't prove improvement. 'We think it's helping' — that's not enough.

Click "Evidence" to see the difference →

Do This Next

  1. Pick 2 metrics you already track. Sprint velocity? PR cycle time? Commit to tracking them through the pilot.
  2. Baseline now. Before you scale adoption, capture the current state. You can't prove improvement without it.