How do you calculate AI ROI?+
The estimator multiplies the employees on a workflow, their weekly hours, working weeks, and hourly cost to get annual labor cost. It applies your expected time reduction, adoption rate, and benefit realization to get the annual financial benefit, then subtracts first-year cost, meaning implementation plus twelve months of operating cost, to get net benefit. First-year ROI is net benefit divided by first-year cost.
How is the payback period calculated?+
Payback is the one-time implementation cost divided by the monthly net benefit, which is monthly benefit minus monthly operating cost. If the monthly net benefit is zero or negative, no payback is shown.
What inputs do I need?+
The business function and workflow, the number of employees and weekly hours spent, an hourly labor cost, the expected time reduction, adoption and benefit realization percentages, and your estimated implementation and monthly operating costs. It takes about 3 to 4 minutes.
Does reduced time mean fewer employees?+
No. Released hours do not necessarily translate into headcount reduction or payroll savings. The estimator values the time as productivity and only part of it, set by the benefit realization percentage, is treated as a financial benefit.
Are the results guaranteed?+
No. The output is an estimate that depends entirely on the inputs you provide. The report also shows conservative, expected, and optimistic scenarios.