Berk Bayri

Counterfactual

An estimate of what would have happened without an intervention, used to distinguish its effects from changes that would have happened anyway.

A counterfactual is what would reasonably have happened without the intervention being evaluated. It provides a comparison for separating a genuine effect from changes that would have happened anyway.

If a support team handles requests faster after an AI rollout, that does not establish that AI caused the improvement. Staffing, policy, seasonality or case mix may have changed. Randomized controls, staged rollouts, matched groups or documented baselines can provide comparisons with different levels of confidence.

The counterfactual is an estimate, not an observable parallel universe. It should make its assumptions and uncertainty visible.

Related: ROI, productivity is upstream of value, and cost per accepted outcome.

Guidance on the Impact Evaluation of AI Interventions

HM Treasury / UK Evaluation Task Force · 2026-05-15