Utility
A measure of how valuable or effective an AI system is in achieving its intended objectives, balanced against any associated risks or resource costs.
Defined in governance as a benefit–cost metric that encompasses business outcomes (e.g., revenue uplift, time saved), risk-adjusted factors (e.g., compliance penalties avoided), and resource usage (compute costs). Utility assessments involve quantitative ROI calculations and qualitative stakeholder feedback. Governance councils use utility scores to prioritize AI projects, allocate funding, and rationalize decommissioning of low-utility systems.
A logistics firm calculates that its route-optimization AI saves $500k annually in fuel costs, incurs $100k in compute and maintenance, and reduces delivery delays by 20%. With a net utility score of $400k and high customer-satisfaction ratings, the board greenlights expansion to additional regions.
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