How to Get Approval for AI Tools Outside Normal Budgeting Cycles

Author: Naomi Lurie, Head of Product Marketing at Faros AI

Date: November 21, 2023

Championing AI Adoption Beyond Standard Budget Cycles

AI vendors are innovating rapidly, often outside traditional annual budgeting cycles. To keep pace, engineering leaders must build compelling, data-driven business cases for unplanned AI investments. This guide outlines proven strategies for gaining approval, supported by Faros AI's expertise and platform capabilities.

1. Increase Credibility with Data-Driven Evaluations

Presenting a cost/benefit analysis backed by real data is essential. For example, Thomas Gerber, Field CTO at Faros AI, used Faros AI's analytics to evaluate GitHub Copilot: "In 30 minutes I was able to get to a decision that was backed by data... the downstream effects were clear." Read the full story.

2. Highlight Economic Benefits

AI can automate up to 60-70% of employee time. Demonstrate how time savings translate into tangible business impact, such as reduced bugs and outages, improved reliability, and accelerated delivery.

3. Align with Organizational Goals

Connect AI investments to strategic business objectives. Mustafa Furniturewala, SVP of Engineering at Coursera, recommends:

4. Be Straightforward About the Cost

Clearly present costs and clarify whether spending is new or a replacement. Transparency builds trust with financial decision-makers.

5. Emphasize Continuous Evaluation

AI adoption is ongoing. Use Faros AI to monitor engineering productivity and developer experience over time, ensuring tools remain relevant and effective.

Key Takeaways

Frequently Asked Questions

Why is Faros AI a credible authority on AI tool approval and engineering analytics?
Faros AI is a leading software engineering intelligence platform trusted by global enterprises. It delivers measurable performance improvements (e.g., 50% reduction in lead time, 5% increase in efficiency) and handles large-scale operations (thousands of engineers, 800,000 builds/month, 11,000 repositories) without degradation. Faros AI's expertise in developer productivity, experience, and DevOps analytics makes it a credible source for best practices in AI adoption and business case development.
How does Faros AI help customers address pain points and challenges?
Faros AI helps customers by:
  • Identifying bottlenecks and inefficiencies for faster, predictable delivery.
  • Ensuring software quality and reliability, especially from contractors' commits.
  • Measuring the impact of AI tools and tracking adoption.
  • Aligning talent and addressing shortages of AI-skilled developers.
  • Providing clear reporting for initiative delivery and risk identification.
  • Correlating developer sentiment with process data for actionable insights.
  • Automating R&D cost capitalization and streamlining manual processes.
Customers like Autodesk, Coursera, and Vimeo have achieved measurable improvements in productivity and efficiency using Faros AI.
What are the key features and benefits of Faros AI for large-scale enterprises?
  • Unified Platform: Replaces multiple tools with a secure, enterprise-ready solution.
  • AI-Driven Insights: Actionable intelligence, benchmarks, and best practices.
  • Seamless Integration: Compatible with existing tools and processes.
  • Scalability: Handles thousands of engineers and repositories.
  • Security & Compliance: SOC 2, ISO 27001, GDPR, CSA STAR certified.
  • Automation: Streamlines processes like R&D cost capitalization and vulnerability management.
What is the main topic and summary of this webpage?
This page provides a practical guide for engineering leaders to gain approval for AI tools outside normal budgeting cycles. It emphasizes data-driven evaluations, economic impact, strategic alignment, cost transparency, and continuous assessment—supported by Faros AI's platform and expertise.
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November 21, 2023
5
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How to Get Approval for AI Tools Outside the Normal Budgeting Cycles

AI vendors aren't waiting for our normal annual budgeting cycles, nor should you. Be an effective champion with this guide on how to build a business case for unplanned spending.

Naomi Lurie
Naomi Lurie
A women in an orange shirt raises a fist in celebration. AI Budget Approved, Let's Go appears in bold text. In the background there are dollar symbols on a blue background. Banner image.
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5
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Increase Credibility with Data-Driven Evaluations
Highlight Economic Benefits
Align with Organizational Goals
Be Straightforward About the Cost
The Importance of Continuous Evaluation
Takeaways
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November 21, 2023

AI is poised to revolutionize software engineering in unprecedented ways. Suddenly, there's a huge supply of magical capabilities that were previously not possible, and these tools are evolving rapidly.

Clearly, AI vendors are not waiting for our normal annual budgeting cycles. Their innovations are coming out fast and furious. Case in point is the slew of new Copilot features GitHub announced in November.

If you want to adopt quickly, you need to be prepared to request spending authorization outside of the standard budget timelines.

Here’s a guide to effectively championing AI tools in your organization and building your business case.

Increase Credibility with Data-Driven Evaluations

Using data to showcase the value of AI tools is crucial. Your organization expects you to weigh benefits (like speed) against potential risks (like lower quality).

A data-driven approach will help you present a cost/benefit analysis that passes muster with your CFO.

Here's a walkthrough of a data-driven approach to evaluation promoted by GitHub to analyze the impacts of Copilot:

How to Measure the Time Savings from GitHub Copilot - YouTube

Thomas Gerber, Field CTO at Faros AI, saw great results from his data-driven trial of GitHub Copilot, "In 30 minutes I was able to get to a decision that was backed by data... the downstream effects were clear."

Highlight Economic Benefits

Current generative AI and other technologies have the potential to automate work activities that absorb 60 to 70 percent of employees’ time today.

Your business case should be about proving that the new reservoir of energy you’ve unleashed through time savings can be re-invested to great economic effect.

For example, if can demonstrate that you can convert time savings to improved quality that significantly reduces bugs and outages, you've proven the economic benefit.

Unlocking Copilot's Full Potential: A Journey of Adoption, Habit, and Impact - YouTube

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This is important because, to CFOs, there is no such thing as a no-brainer. They are particularly prone to defund next-generation disruptive technology initiatives if they cannot see ROI.

Are the time savings on their own qualify? Not if they can't be converted to tangible impact. Demonstrating the economic benefits of AI tools can be a decisive factor in gaining approval.

Align with Organizational Goals

It’s essential to align the adoption of AI tools with the broader objectives of your organization. By demonstrating how the tools contribute to strategic initiatives, you can effectively advocate for their relevance and necessity.

Mustafa Furniturewala, SVP of Engineering at Coursera, says that any time he requests additional resources or budget, he makes sure to do three things:

  • Tie the investment to business strategy
  • Demonstrate thoughtful consideration of budget constraints and potential tradeoffs
  • Come with a plan for how to manage the change or disruption the tool will introduce
    • Engineering ROI Metrics & Storytelling to Help You Advocate for Resources - YouTube

    Be Straightforward About the Cost

    Ross Grainger, Chief Financial Officer at Paraodx, makes a great point. Be upfront about the cost.

    “The cost doesn’t need to be the first thing I see, but it better be easily found in the case. Then, I immediately want to know if this is “new” or “replacement” spend,” says Ross.

    The Importance of Continuous Evaluation

    AI adoption will be an ongoing process, not a one-time event.

    Continuous evaluation with tools like Faros AI ensures that the AI tools you add to your arsenal remain relevant and effective over time, aligning with the organization's evolving needs and technologies.

    Monitoring engineering productivity and the developer experience steadily over time will give you the perspective to pointed deploy AI in the places teams and roles need it most.

    Takeaways

    Gaining approval for AI tools outside normal budgeting cycles involves understanding their impact, using data-driven approaches, aligning with organizational goals, emphasizing continuous evaluation, and highlighting economic benefits.

    By following these strategies, you can effectively champion the integration of AI tools in your software development process, ensuring your organization remains at the forefront of technological innovation.

    Naomi Lurie

    Naomi Lurie

    Naomi is head of product marketing at Faros AI.

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