Rethinking the Role of Metrics

 In a recent episode of The CX Iconoclast, Richard Owen speaks with MIT’s Michael Schrage about how artificial intelligence is transforming KPIs from static scorecards into intelligent, conversational systems that guide business decisions.

Most companies still treat metrics as passive dashboards—updated quarterly and quickly forgotten. Schrage calls this “set-and-forget management.” With AI, those same KPIs can now “talk back,” surfacing insights, prompting action, and learning from every interaction. It’s a shift from measurement to conversation.

From Dashboards to Dialogue

This transformation aligns with the Customer AI Masterclass (Lesson 4.2: The Customer AI Insights Framework), where leaders move from reporting to real-time action. By combining predictive and generative AI, companies can build digital twins of their metrics—simulating trade-offs, testing scenarios, and anticipating outcomes before they occur.

AI turns KPIs into interactive models that help leaders explore “what if” questions, driving faster experimentation and more precise decisions.

The Leadership Shift

Schrage argues the real challenge isn’t technology—it’s leadership. Many executives still rely on gut instinct instead of data. AI demands cognitive humility and a willingness to let analytics guide decisions.

As described in the Customer AI Masterclass (Lesson 6.4: Customer AI Financial Model), intelligent KPIs don’t just measure—they optimize value creation across teams and customer segments. This marks a fundamental shift from reactive management to predictive, customer-led growth.

The Future of Measurement

The next generation of CX and business leaders will use KPIs as living systems—communicating insights, coordinating actions, and predicting outcomes. In Schrage’s words, “KPIs should act like a GPS: they don’t just tell you where you are, but help guide you where to go.”