Key strategies for generating business value from AI
Freshworks CEO Dennis Woodside shares tips to unlock AI’s potential
Editor’s note: The following column first appeared on LinkedIn.
In today's unpredictable economy, mid-market and larger enterprise businesses face strong pressure to improve efficiency and do more with less. AI has become a key tool in this endeavor, but adoption isn’t always smooth.
Every CIO I talk to is facing the same challenge: how to drive efficiency in an unpredictable economy. Rising costs, shifting trade policies, and tighter budgets are forcing companies to rethink spending. The real challenge is knowing where to invest.
One thing is clear: technology decisions need to deliver value fast. Yet, I still hear stories of AI deployments that take 12+ months, require costly consultants, and don’t show meaningful ROI until well into year two. Outdated, outsized software providers have been slowing companies down for decades, and this must change.
Read also: How AI can boost the growth engine of our economy
A recent survey found that only 25% of companies are currently realizing returns on AI, while 75% are still waiting to see measurable benefits. It doesn’t have to be this way.
AI should be a tool for rapid impact, not a long-term experiment. Companies that take a pragmatic approach—focusing on automation that actually solves problems instead of complex, overbuilt AI stacks—are the ones seeing results now.
A five-step playbook for CIOs: Driving AI efficiency in today’s economy
At Freshworks, we’ve worked with hundreds of mid-market companies to help them get AI right – fast. Here’s what we’ve learned about making AI work without the complexity:
Start small, scale fast: Identify 1-2 high-impact AI use cases that reduce costs or improve productivity immediately (i.e., IT ticket resolution, customer support automation). Avoid massive AI projects that take years to show results.
Eliminate complexity: Choose AI that integrates seamlessly with your existing systems. If your team needs consultants and months of training just to get started, you’re using the wrong AI.
Measure ROI from day 1: AI investments should deliver clear, measurable results within months, not years. Set KPIs early and continuously refine AI initiatives based on real-world performance (i.e., reduced response times, cost savings, employee hours freed up, etc.).
Empower teams, Not just IT: AI should work across support, HR, and operations–not just IT. The more teams benefiting from automation, the faster the ROI.
Prioritize pragmatic AI, not AI for AI’s sake: Focus on real business problems and AI that customers actually want. Customers don’t want chatbots - they want solutions. Build AI that understands context, anticipates needs and seamlessly connects with human support when necessary.
AI should make work simpler, employees smarter, and businesses more efficient. It should be an enabler, not an obstacle. In today’s economy, companies can’t afford to wait. If your AI isn’t driving efficiency today, it’s slowing you down.
The proof is in the results. Freshworks customers are already seeing the impact: businesses leveraging AI-powered productivity features saw an improvement of up to 37.6% in first response time and an improvement of 38.7% in resolution times. AI should be an investment that delivers immediate value, and the right approach ensures results in weeks, not years.
