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AI Business Case & ROI Calculator
Module 5.1Calculate time savings, cost avoidance and ROI for an AI pilot — first-year ROI, payback period and 3-year NPV, with a GO/REVIEW/NO-GO recommendation.
Project
Current state — what are you spending today?
AI solution — pilot investment
AI solution — ongoing annual costs (post-pilot)
Expected benefits
Your result
£96,600
Total pilot investment
£29,830
Total annual benefit
-£30,170
Net annual benefit (after ongoing costs)
-131%
First-year ROI
38.9 months
Payback period
-£171,628
3-year NPV (at 10% discount rate)
NO-GO
Recommendation
- Pilot investment: £96,600
- First-year ROI: -131% — NO-GO
- Payback period: 38.9 months
Weekly labour cost£720
Annual labour cost£37,440
Annual error cost£2,500
Total current annual cost£39,940
Pilot cost subtotal£84,000
Contingency£12,600
Total ongoing annual operating cost£60,000
Hours saved per week12 hrs/wk
FTE released0.3 FTE
Annual labour savings£28,080
New error rate2%
Error cost savings£1,750
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