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How to Identify High-Value AI Use Cases

Insights/ AI Strategy & Automation / Applied Use Cases

11 Jul 2023 - 07 min read

How to Identify High-Value AI Use Cases
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Why most AI ideas should never have been chosen

Most organisations have the same problem with AI: not too few ideas, far too many. A list of forty use cases circulates in a slide deck, three of them get budget, two of those quietly die in pilot, and the one that survives is rarely the one that mattered most. The expensive failures are not the ones that fail in production; those at least deliver lessons. They are the use cases that should never have been picked up in the first place.

This article walks through how to filter that list down. Not with a value-and-feasibility matrix borrowed from a vendor deck, but with a small set of practical questions that tend to predict, in advance, which AI ideas are worth the investment and which will absorb time the organisation cannot get back. Once a use case clears the filter, the operational follow-on is covered in the AI readiness checklist.

The four questions that filter most ideas

Four questions, asked early and answered honestly, eliminate most of the ideas that should not have made the list.

The first is does the data actually exist, in a form a model can use, today. Not "we collect this somewhere", but: is the data clean enough, current enough, and accessible enough that a model could be trained or prompted on it without a separate six-month data project as a prerequisite. If the honest answer is no, the use case is a data project first and an AI project second, and pretending otherwise is how budgets get spent without anything shipping.

The second is does this use case have a willing operational owner. Not the executive who suggested it in a workshop, but the person whose team will run with the output every day after launch. If no operational owner is willing to commit, the use case is a research project, not a deployment, and should be funded that way (or not at all).

The third is what is the cost of being wrong. AI outputs are probabilistic. If the use case can absorb a few percent error rate without anyone getting hurt, sued or losing money, it is a candidate for AI. If the cost of a single wrong output is a frozen customer account, a mis-prescribed medication, or a regulatory breach, the use case needs much more than a model: it needs human review designed in, audit, and a rollback path before any deployment is realistic.

The fourth is does this problem actually need AI, as opposed to a rule, a query, a workflow change, or simply better staffing. Many "AI ideas" are problems that a SQL query, a structured form, or a one-page checklist would solve more cheaply, more reliably, and with no model risk. AI is a fit when the input is unstructured, the patterns are too varied for rules, and the volume justifies the operational overhead. When that is not the case, building it with AI is a more expensive way of solving the same problem worse.

Map them on impact vs feasibility, then read the quadrants

Once an idea passes the four questions, the next filter is comparative. Plot the surviving use cases on a simple two-axis grid: business impact (how much money or risk reduction the use case actually delivers if it works) against feasibility (how realistic the data, ownership, integration and timeline are). The four quadrants tell different stories.

High impact, high feasibility: these are the ones to build first, with proper investment. They are also the ones where most organisations under-invest, because the ideas look unglamorous next to the high-impact, low-feasibility quadrant.

High impact, low feasibility: these are the strategically interesting cases. Treat them as multi-quarter capability builds, not next-quarter deployments. Funding them as if they were ready is the single most expensive mistake on the matrix.

Low impact, high feasibility: these are useful as proof points, as learning ground for the team, and as ways to build operational muscle. Build them when they directly enable the high-impact ones, not because they are easy.

Low impact, low feasibility: drop them. The fact that someone in the room is attached to one of these is not a reason to keep it on the list.

What good first use cases actually look like

For organisations that have not yet shipped real AI to production, the first use case matters disproportionately, because everything the organisation will believe about AI for the next eighteen months will be shaped by it. Five characteristics consistently separate first use cases that build credibility from those that destroy it.

They handle a high-volume task, where even a modest improvement compounds. Saving twenty seconds on a task done four hundred times a day is more useful than saving an hour on a task done once a quarter.

They sit on structured operational pain: a repetitive workflow whose pain is visible and quantified, not a vague aspiration like "improve the customer experience".

They are easily measured: there is a baseline number today, and a clear way to measure whether the AI version is better, worse, or the same.

They are easily reversed: if the AI version turns out to be wrong, the organisation can switch back to the previous way of working in days, not months.

And they have a named owner who wants the result, not a sponsor who wants the announcement. The difference between those two motivations is usually the difference between a use case that lands and one that becomes a slide everyone stops citing.

Anti-patterns to retire from the list

A few categories of "AI use case" come up in almost every workshop and rarely deserve the slot they are given.

Vanity AI: the use case that exists mainly to be mentioned in an annual report or investor deck. These tend to be over-scoped, under-owned, and abandoned the quarter after the deck ships.

Full automation of edge cases: the long tail of unusual cases is exactly where models fail most often. Trying to automate the edge cases first, instead of the high-volume routine work, is a structural misallocation that wastes both time and trust.

Replacing a competent human entirely on a judgement task: tasks that require contextual judgement (a senior underwriter, an experienced doctor, a specialised lawyer) almost never become a one-shot AI deployment. They become an AI-assist deployment, where the human stays in the loop and does the same job faster. Framing it the other way at selection time leads to a year of disappointment.

Solving for the demo: building the use case that demos best, not the one that will land best in production. A use case that wins the steering committee but cannot survive its first month of real operational use is a use case that should not have made it through selection.

Final takeaway

The single highest-leverage moment in any AI portfolio is selection. Once a use case is funded, organisational momentum makes it very hard to stop, even when the answer to one of the four filter questions is now obviously no. Picking the right use cases up front saves more money, time and credibility than any improvement to delivery later. Picking the wrong ones costs all three, repeatedly, and quietly trains the organisation to believe that "AI does not work here".

The wider context, including how use-case selection connects to AI strategy, governance and operating model, is collected in the AI strategy and automation insights cluster. And when the question moves from "we have a long list of ideas" to "we need a portfolio that ships, with the right ones picked, the wrong ones declined cleanly, and the survivors set up to succeed", that is exactly what my digital transformation advisory practice is built around.

- Haja Faniry

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How to Identify High-Value AI Use Cases | Haja Faniry