OKRs for Measuring AI Adoption & Effectiveness


OKRs for Measuring
AI Adoption & Effectiveness

READ ON

HERBIG.CO

PUBLISHED

Oct 9, 2025

READING TIME

5 min & 32 sec

​Dear Reader,​

In The OKR Parallel Universe Syndrome, I wrote about an interesting cycle:

Teams model their OKRs after the company OKRs. The company insists that other things are "also important." So when teams share their roadmap items connected to the OKRs, but get pushback on where the work on these "other important things" is happening.

I'm not sure if this discrepancy between stated goals and additional "priorities" is more present than in the topic of AI. Leadership (and the C-level/board) are all over it, but often only convey messages like "We have to focus on AI."

But what does that mean? When pressed for specificity, it can be hard to determine what is actually meant by this focus. And OKRs could be one of those simple, yet not easy, levers that help you demystify this intention hiding in plain sight.

To get there, let's work with two starting points:

  1. I differentiate between making teams more efficient and making customers more efficient through AI.
  2. To imagine what that can look like, I love the quote from Matt Garman (CEO of AWS): „What is possible now that hasn’t been possible before?“

When trying to measure how to make teams more efficient, consider using a workshop prompt during OKR drafting: "If AI is successfully enabling our teams, what would they be able to accomplish that they can't today? What work would they stop doing, do faster, or do better?"

Leading to a potential OKR set for a fictional travel company like this:

O: We take the first steps to becoming a truly AI-enabled organization

KR1: 80% of first-level support requests resolved without human intervention.

KR2: 100% of proposed leading indicator definitions start with a query in our product analytics software.

KR3: Reduce average time spent on tier 2 analysis tasks by 40% across product teams.

When trying to measure how to make customers more efficient, you can use the workshop prompt during OKR drafting: "What specific customer behaviors would indicate they're getting more value through AI? What would they be doing more/less/differently if our AI implementation is successful?"

Leading to a potential OKR set for a fictional travel company like this:

O: We upgrade every customers' travel experience to AI Class.

KR1: 60% traveler acceptance rate of AI suggestions in booking flow.

KR2: Satisfaction rating of 8.5 (out of ten) for fully AI-generated cross-selling suggestions.

KR3: 25% reduction in average time from search to booking completion for AI-assisted journeys

Thank you for Practicing Product,

Tim

PS.: Join me live for the upcoming edition of the Scrum Event on November 18 to hear more about the principles (and backstory) behind the concepts of my book Real Progress.

PPS.: Speaking of which, if you prefer meeting face-to-face, Product Tank Frankfurt on November 20 is your next best shot. We will host an interactive session including (signed) book giveaways. If your company is interested in sponsoring the event so that I can bring more copies, please reply to this email.

Join my In-Person Workshops in Berlin

I'm excited to bring my beloved in-person workshops back to Berlin in January 2026. You can choose between 1-day workshops on Product Strategy, Product OKRs, or Product Discovery, or opt for the full 3-day experience for you or your team.

(reach out for custom team quotes)

If you consume one thing this week, make it this...

The Ultimate Coda Handbook for Planning & OKRs

Who is Tim Herbig?

As a Product Management Coach, I guide Product Teams to measure the real progress of their evidence-informed decisions.

I focus on better practices to connect the dots of Product Strategy, Product OKRs, and Product Discovery.

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1 tip & 3 resources per week to improve your Strategy, OKRs, and Discovery practices in less than 5 minutes. Explore my new book on realprogressbook.com

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