Calculating ROI on AI Automation

AI vendors promise the moon. Here is how to calculate actual ROI before you buy.

The Simple Formula

ROI = (Time Saved × Hourly Value - AI Cost) / AI Cost × 100

If an AI tool saves you 10 hours per week and your time is worth 00/hour, that is ,000/week in value. If the tool costs 00/month, your monthly ROI is: (,000 - 00) / 00 × 100 = 700%

What to Measure

Time savings: Track hours before and after implementation. Be honest — did you reallocate that time or just create new busywork?

Revenue impact: Did lead response time improve? Did conversion rates increase? Did you handle more volume with the same team?

Error reduction: How much did you spend fixing mistakes before AI? Data entry errors, missed follow-ups, double-booked appointments.

Employee satisfaction: Are your people happier doing less grunt work? This affects retention, which has real costs.

Red Flags

Beware of AI tools that require massive setup time, have steep learning curves, or need constant troubleshooting. The best ROI comes from tools that work out of the box and improve over time.

Start Small

Pick one repetitive task. Automate it. Measure for 30 days. If ROI is positive, expand. If not, try a different tool or process.

More business automation insights at logicimpactai.com/blog.