Garrett Fritz: How to Measure AI ROI in Business?

These days, when every industry is moving at warp speed, executives face mounting pressure from stakeholders to harness artificial intelligence (AI). But what if your team's efforts with tools like ChatGPT aren't translating into tangible gains? Imagine a real estate agent juggling listings, client communications, and market analysis—could AI streamline this without clear metrics? Garrett Fritz, co-founder of Meta CTO and an MIT aerospace engineering graduate, shares insights from his journey from defense tech to Silicon Beach. With experience building products for Major League Baseball and Liverpool FC, Fritz now helps businesses navigate AI adoption through fractional CTO services. His core message: True AI success requires maturity assessments to bridge the gap between hype and real returns, especially for non-tech firms.

The Disconnect in AI Adoption

Many businesses, from small startups to enterprises, rush into AI without a solid plan. Managers often report experimenting with basic tools, but lack ways to quantify impact. This leads to "AI theater," where leadership approves spending but fails to guide implementation.

As Fritz explains, "The executives and the ownership of these different entities was almost doing AI theater where they were carte blanche saying, we approve AI, you may go spend on AI tools, we expect you to be better, and we're going to fire those who don't do it." This top-down mandate cascades without structure, resulting in fragmented tool use. Employees might accelerate workflows individually but hesitate to share, fearing job loss.

Consider a mid-career professional switching to entrepreneurship in a non-tech field like real estate. You invest in AI for lead generation, yet without benchmarks, how do you know if it's boosting closings? Studies show this is widespread: According to McKinsey's 2025 AI survey, while 78% of organizations use AI, only a fraction measure ROI effectively, often focusing on productivity without tying it to bottom-line growth. Similarly, Stanford's 2025 AI Index Report highlights that AI adoption jumped to 78% in 2024, but many firms struggle with integration across departments.

Reflect on your own setup: Is your team spending thousands on AI subscriptions without seeing reduced costs or increased output? This mismatch affects diverse entrepreneurs, whether first-generation builders or those from global backgrounds adapting to new markets.

What Is the AI Maturity Index (AMI)?

To address these challenges, Meta CTO developed the AI Maturity Index (AMI), a service that evaluates a company's AI practices against industry standards. It compares adopted tools with cross-sector best practices, providing executives with actionable answers to "How are we using AI, and is it correct?"

Fritz notes, "There's still not a lot of resounding maturity and operational stability when it comes to incorporating these tools across the spectrum to different types of businesses."

 AMI goes beyond audits—it's a framework for building bespoke solutions, deciding when to buy off-the-shelf tools or create custom integrations.

For instance, picture a young professional leading a marketing team in a mid-market firm. AMI might reveal that while sales uses AI for analytics, marketing lags in content generation. By benchmarking against peers, as seen in PwC's 2025 Responsible AI survey where 55% report ROI boosts from structured adoption, businesses can prioritize high-impact areas.

Steps to Effective AI Integration

Overcoming AI hurdles starts with leadership involvement. Here's a practical roadmap based on Fritz's approach:

1. Assess Current Practices: Interview teams to map tool usage. Identify silos where best practices aren't shared.

2. Select and Standardize Tools: Be opinionated—choose company-wide solutions after evaluating pros, cons, and emerging options. Fritz emphasizes exploring if bespoke builds are needed for optimal ROI.

3. Measure and Monitor: Tie AI metrics to business outcomes like productivity or revenue. Tools like dashboards can track utilization, as recommended in Wharton's 2025 AI Adoption Report, where 72% of leaders measure gains in profit.

   knowledge.wharton.upenn.edu

4. Foster a Supportive Culture: Address fears by emphasizing AI as a enhancer, not replacer. Train across departments to ensure buy-in.

For underrepresented entrepreneurs in emerging markets, this means adapting AI to local contexts, like using it for multilingual customer service without cultural biases.

Challenge yourself: Audit one department's AI use this week—what quick wins could double efficiency?

Overcoming Common Barriers to AI ROI

Barriers often stem from inertia or lack of expertise. Even non-AI experts can lead this, but as Fritz points out, internal "deputies" face resistance without authority. This is where external partners like fractional CTOs shine, offering unbiased assessments.

A hypothetical scenario: A first-generation entrepreneur in wellness adopts AI for inventory but ignores integration with sales data. Result? No visible ROI. Meta CTO's model counters this by empathizing with past decisions while pivoting to effective strategies.

Resources like "Artificial Intelligence: A Modern Approach" by Stuart Russell provide foundational knowledge, while Menlo Ventures' 2025 Generative AI report stresses measuring enterprise-wide impact.

FAQ: How Does a Fractional CTO Help with AI?

• What is a fractional CTO?

 It's outsourced expertise for businesses needing tech leadership without full-time hires. Meta CTO provides this, focusing on AI and product delivery.

• Can small businesses afford AI assessments? 

Yes—AMI is scalable, helping identify cost-saving opportunities quickly.

• How long until I see AI ROI? 

Per OpenAI's 2025 enterprise report, early adopters see returns in months through targeted implementations.

Key Takeaways and Next Steps

Effective AI adoption demands more than tools—it requires maturity, measurement, and management buy-in. From Fritz's insights, businesses can move from disjointed experiments to strategic integration, boosting ROI across sectors.Apply this today: Conduct a quick AI audit in your team. For deeper guidance, visit Meta CTO's site  or explore McKinsey's AI resources. Share your AI wins on social media—tag a colleague who needs this. Join communities like AI-focused LinkedIn groups to connect with diverse peers. What AI challenge will you tackle first?