TLDR AI · MISCELLANEOUS

THE THREE LAYERS OF ROI FOR AI AGENTS

henrypray.com4 min read

Summary from the TLDR AI newsletter

This post discusses a three-layer framework for determining where the ROI for AI agents comes from. The first layer is labor efficiency - while this layer is easy to explain, developers need to understand that AI efficiency doesn't equal immediate realized ROI. The second layer is net-new revenue, the backlog of stuff businesses never did until AI that create new value. The final layer is optimization - AI models bring decision fluency and ML brings decision precision, which creates value.