---
id: "quote-parity-roi-question"
type: "quote"
source_timestamps: ["§ Type 1: Competitive Parity"]
tags: ["roi", "tactical-investment"]
related: ["concept-competitive-parity-investment"]
speaker: "Baba Prasad"
speakers: ["Baba Prasad"]
quote: "Competitive parity is a cost-avoidance investment not a return-generating one. \\\\\\\"What is the ROI?\\\\\\\" is the wrong question. The right question is \\\\\\\"What is the cost of not doing this?\\\\\\\""
sources: ["spine"]
sourceVaultSlug: "hbr-seg-spine"
originDay: 1
articleStem: "hbr-edu-47-5-types-ai-investment"
sourceUrl: "https://hbr.org/2026/06/the-5-types-of-ai-investment-and-how-to-capture-their-value"
sourceTitle: "The 5 Types of AI Investment–and How to Capture Their Value"
---
# The wrong question for parity investments

> Competitive parity is a cost-avoidance investment not a return-generating one. "What is the ROI?" is the wrong question. The right question is "What is the cost of not doing this?"

— [[entity-baba-prasad|Baba Prasad]]

The rhetorical hinge of the [[concept-competitive-parity-investment|Type 1]] argument: leaders keep hunting for returns where none exist. Reframing the question from ROI to *cost-of-inaction* is what motivates the [[action-cap-parity-investment|cap-at-parity]] action and the *competitive gap cost* metric.