A Pragmatic Look at ROI in the Age of Hype for AI

Published in Member Communities on October 22, 2025

By Jeremy Kauten, CIO and SVP of IT, VGM Group

Artificial Intelligence (AI) is everywhere—boardrooms, product roadmaps, vendor pitches, and strategic plans. The promise? Efficiency, automation, and transformation. The reality? We’re at the peak of the Gartner Hype Cycle, where expectations are inflated, investments are soaring, and tangible ROI remains elusive for many.

Most organizations aren't cutting FTEs - they're making them faster and more efficient.

The Hype Cycle: Where Are We Now?

According to Gartner, AI is cresting the “Peak of Inflated Expectations.” This is the phase where:

Capital is abundant: Venture funding and enterprise budgets are pouring into AI tools.
Promises are bold: Vendors claim AI will reduce headcount, automate workflows, and revolutionize industries.
Reality Check: Most organizations aren’t cutting FTEs—they’re making them faster more efficient, not necessarily fewer employees…Yet.

The ROI Illusion

AI tools often promise cost savings through automation. But in practice:

Headcount remains stable: AI augments human work rather than replaces it.
Productivity gains are real: Employees can do more, faster—but that doesn’t always translate to reduced costs…Yet.
Integration is complex: True ROI requires deep integration, change management, and clear use cases.

What’s Next:

As we move past the peak:

Costs will normalize: The flood of tools will thin out; pricing will become more competitive.
Winners will emerge: Tools that solve real problems—workflow automation, predictive analytics, customer service—will stand out.
ROI will sharpen: Organizations will shift from experimentation to operationalization, focusing on measurable outcomes.

Trailblazers vs. Late Adopters

If you’re a trailblazer: Keep charging forward. You’ll spend more upfront blazing trails, whether that means innovating new products, entering untapped markets, or pioneering new methods, but you will reap the benefits sooner than your competitors.
If you’re just starting: Begin with Large Language Models (LLMs) like Microsoft’s Copilot or Google’s Gemeni. Then ease into Small Language Models (SLMs) tailored to your business—like chat agents for billing, reimbursement, or customer support.

Where AI Is Already Making an Impact

Billing platforms: Emerging and established vendors in the DME space are integrating AI.
Phone systems: AI-enhanced inbound/outbound calling is improving customer experience.
Productivity suites: Google Workspace and Microsoft 365 are embedding AI into everyday workflows.
Order Intake Automation: Darby and Tennr are transformation how DME providers manage orders. These platforms use automation to minimize errors saving both time and money.

Action Plan

Action Steps for VGM Members

Explore the VGM Portal and VGM Vendor Partners: We’ve curated consultants and vendors who specialize in AI for DME and healthcare. A tech index briefly outlining our tech vendor partners is also located at the back of this playbook.
Audit your AI spend: Look for hype purchases or shelfware. Are you paying for tools that aren’t delivering?
Evaluate ROI: Are fees justified by productivity, accuracy, or customer satisfaction?
Contract Terms: Many AI tools start the subscription billing upon contract execution.
Training & Adoption: Employees often reject tools and need training. Include training and ramp-up as part of your agreement.
Schedule a call: Don’t wait. Connect with a VGM expert to start your AI journey today.

Final Thought

Whether you’re blazing trails or just starting out, the key is intentionality. AI isn’t magic—it’s a tool. Use it wisely, measure its impact, and lean on VGM to guide your path forward.

This article was originally featured in the "VGM Playbook: Technology-Driven Strategies and Resources." To read the full article and more like this, download your copy of the playbook today!