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COMPEL Glossary / ai-value-chain

AI value chain

The six-stage path — data, model, inference, decision, action, outcome — that an AI feature traverses to produce business value.

What this means in practice

Each stage introduces both value-creation opportunities and value-leakage risks; the value chain is the reasoning scaffold for isolating where shipped value is not becoming realized value.

Synonyms

AI value path , six-stage AI value chain

See also

  • Shipped value — The outcome an AI feature can theoretically produce if it is adopted and sustained at design intent — the denominator against which realized value is compared.
  • Realized value — The outcome the organisation actually captures from an AI feature, after accounting for adoption, override, and drift effects — distinct from shipped value, which is the theoretical capacity.
  • Incremental value — Delivered outcome minus counterfactual outcome — the only value quantity that survives CFO and audit-committee scrutiny.
  • KPI tree — A hierarchical decomposition of a business outcome into drivers and metrics — with arithmetic or causal relationships at each level.

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