KPI
Key Performance Indicator
Quantifiable measures used to evaluate success in meeting objectives. For AI projects, KPIs track both technical performance and business outcomes.
In-Depth Explanation
Key Performance Indicators (KPIs) are quantifiable measurements that demonstrate how effectively objectives are being achieved. Good KPIs drive the right behaviours and enable data-driven decisions.
KPI characteristics (SMART):
- Specific: Clearly defined
- Measurable: Quantifiable
- Achievable: Realistic targets
- Relevant: Aligned to objectives
- Time-bound: Defined timeframe
AI project KPI categories:
- Technical: Accuracy, latency, uptime
- Operational: Throughput, error rates, processing time
- Business: Cost savings, revenue impact, customer satisfaction
- Adoption: Usage rates, user engagement, feature adoption
KPI best practices:
- Fewer is better (5-7 key metrics)
- Balance leading and lagging indicators
- Align with strategic objectives
- Review and adjust regularly
- Make visible and actionable
Business Context
KPIs connect AI initiatives to business outcomes. Without clear KPIs, it's impossible to demonstrate value or identify improvement opportunities.
How Clever Ops Uses This
We help Australian businesses define meaningful KPIs for AI projects, ensuring clear success criteria and ongoing performance visibility.
Example Use Case
"AI customer service KPIs: automated resolution rate (60%+), customer satisfaction (4.0+), average handling time (<2 min), escalation rate (<20%)."