How to Calculate the ROI of AI Automation
Understanding the return on investment (ROI) of AI automation is crucial for making informed business decisions. This guide provides a practical framework for measuring and maximizing your automation investments.
The ROI Formula for AI Automation
The basic formula for calculating AI automation ROI is:
ROI = (Net Benefits - Total Costs) / Total Costs × 100But the real challenge lies in accurately identifying all benefits and costs.
Key Metrics to Track
Time Savings
- Hours saved per task
- Tasks automated per month
- Employee time redirected to high-value work
Cost Reduction
- Labor cost savings
- Error reduction costs
- Processing speed improvements
Revenue Impact
- Increased sales velocity
- Customer satisfaction improvements
- Market expansion capabilities
Real-World Example
A mid-size company implemented AI agents for customer support:
- Before: 10 support agents handling 500 tickets/day
- After: 3 agents + AI handling 1,200 tickets/day
- Time Savings: 70% reduction in average resolution time
- Cost Savings: $420,000 annually
- Implementation Cost: $80,000
- ROI: 425% in Year 1
Start Your ROI Analysis
Contact our team for a complimentary ROI assessment of your automation opportunities.