To quantify the real-world impact of its AI tools, Block tracks a simple but powerful metric: "manual hours saved." This KPI combines qualitative and quantitative signals to provide a clear measure of ROI, with a target to save 25% of manual hours across the company.
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The best barometer for AI's enterprise value is not replacing the bottom 5% of workers. A better goal is empowering most employees to become 10x more productive. This reframes the AI conversation from a cost-cutting tool to a massive value-creation engine through human-AI partnership.
Block's CTO quantifies the impact of their internal AI agent, Goose. AI-forward engineering teams save 8-10 hours weekly, a figure he considers the absolute baseline. He notes, "this is the worst it will ever be," suggesting exponential gains are coming.
Unlike traditional software that optimizes for time-in-app, the most successful AI products will be measured by their ability to save users time. The new benchmark for value will be how much cognitive load or manual work is automated "behind the scenes," fundamentally changing the definition of a successful product.
The true ROI of AI lies in reallocating the time and resources saved from automation towards accelerating growth and innovation. Instead of simply cutting staff, companies should use the efficiency gains to pursue new initiatives that increase demand for their products or services.
Traditional metrics like GDP fail to capture the value of intangibles from the digital economy. Profit margins, which reflect real-world productivity gains from technology, provide a more accurate and immediate measure of its true economic impact.
Coastline Academy frames AI's value around productivity gains, not just expense reduction. Their small engineering team increased output by 80% in one year without new hires by using AI as an augmentation tool. This approach focuses on scaling capabilities rather than simply shrinking teams.
Traditional product metrics like DAU are meaningless for autonomous AI agents that operate without user interaction. Product teams must redefine success by focusing on tangible business outcomes. Instead of tracking agent usage, measure "support tickets automatically closed" or "workflows completed."
Instead of abstract productivity metrics, define your AI goal in terms of concrete headcount avoidance. Sensei's objective is to achieve the output of a 700-person company with half the staff by using AI to bridge the gap. This makes the ROI tangible and aligns AI investment with scalable, capital-efficient growth.
At Block, the most surprising impact of AI hasn't been on engineers, but on non-technical staff. Teams like enterprise risk management now use AI agents to build their own software tools, compressing weeks of work into hours and bypassing the need to wait for internal engineering teams.
When leadership demands ROI proof before an AI pilot has run, create a simple but compelling business case. Benchmark the exact time and money spent on a current workflow, then present a projected model of the savings after integrating specific AI tools. This tangible forecast makes it easier to secure approval.
