NEA partner Tiffany Luck says many companies still struggle to measure AI ROI

In short: Companies are spending heavily on AI, but many still cannot clearly prove what they are getting back for the money.

What's going on

A recent TechCrunch Equity podcast episode featured Tiffany Luck, a partner at venture capital firm NEA. Luck said many large businesses are still trying to figure out their “AI ROI.” ROI means return on investment, or a simple question: if you spend a dollar, do you get more than a dollar of value back?

The episode points to a recent wave of “use more AI” pushes inside companies, followed by concerns about cost. TechCrunch noted examples where spending rose fast, including a report that Uber used up its annual AI budget in just a few months. It also mentioned some companies cutting back on Claude licenses (paid access to an AI tool) and Meta ending an internal leaderboard that tracked AI usage.

Luck discussed areas she is watching, including “personal agents,” which are AI helpers that can do tasks for you, like a digital assistant that can take actions instead of only answering questions. She also talked about how startups are trying to help companies track and manage AI spending, so leaders can better connect AI use to business results.

What to watch

More companies may start demanding clearer proof before expanding AI budgets, especially as finance teams look for measurable results. Tools that track AI spending and outcomes could become more common, like a utility bill that shows not just what you used, but what you got from it.

Source: TechCrunch AI