The Forecast vs. Realized Loop is the core governance mechanism of AI Value Realization. At approval, each AI initiative establishes a financial baseline – its forecasted P&L outcome by cost line and timeline. Post-deployment, actual P&L movement is measured, typically monthly, and compared against that baseline. Running this comparison at least monthly, rather than annually, converts governance from a retrospective audit into a real-time accountability mechanism that catches value erosion before it reaches the board.