measurement method
What It Means
A measurement method is the structured approach or recipe your organization follows to quantify something consistently. It's like having a standardized playbook that defines the specific steps, tools, and processes needed to measure a particular attribute or outcome in a repeatable way.
Why Chief AI Officers Care
Without standardized measurement methods, your AI initiatives become impossible to evaluate, compare, or improve systematically. This creates compliance risks when regulators ask how you measure AI fairness or accuracy, and makes it nearly impossible to demonstrate ROI or identify which AI projects are actually working versus which ones are failing.
Real-World Example
A retail company's measurement method for AI recommendation system performance might specify: collect click-through rates every 24 hours using their analytics platform, calculate conversion rates using specific customer segments, measure revenue impact over 30-day rolling windows, and compare against baseline metrics from the previous quarter using predetermined statistical tests.
Common Confusion
People often confuse measurement methods with the actual measurements or metrics themselves - the method is the 'how to measure' recipe, while the metric is the 'what you're measuring' and the measurement is the actual number you get.
Industry-Specific Applications
See how this term applies to healthcare, finance, manufacturing, government, tech, and insurance.
Healthcare: In healthcare, measurement methods are critical for ensuring consistent, accurate collection of clinical data, quality m...
Finance: In finance, measurement methods are critical for ensuring consistent valuation, risk assessment, and financial reporting...
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Includes:
- 6 industry-specific applications
- Relevant regulations by sector
- Real compliance scenarios
- Implementation guidance
Technical Definitions
NISTNational Institute of Standards and Technology
"generic description of a logical organization of operations used in a measurement"Source: aime_measurement_2022, citing ISO/IEC Guide 99
"logical sequence of operations, described generically, used in quantifying an attribute with respect to a specified scale"Source: aime_measurement_2022, citing ISO/IEC 24765
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