Executive Summary

  • AI projects fail when they automate rare tasks instead of frequent, low-value ones.
  • The calculation formula: (Hourly Rate * Volume * 0.8) - (Amortized Build Cost + Token Cost) = Net ROI.
  • Do not calculate AI ROI based on fired employees; calculate it based on delayed future hiring (Capacity Expansion).
Average Token Cost per Transaction
$0.02Falling Fast

While engineering CapEx is high, the OpEx of running an LLM pipeline is virtually zero compared to human labor.

1. Time Auditing the Organization

Before green-lighting a build, require department heads to log the bottom 20% of their team's tasks. If a task is performed fewer than 50 times a month, it is rarely worth the engineering overhead to automate.

Cost Breakdown: Year 1 Automation Deployment
Engineering Build (One-Time CapEx)75
Software Seats & Data Storage15
LLM Token/Inference Cost10

2. Pricing the Build

Building an internal AI tool internally diverts your engineering team from your core product. This is why outsourcing the initial implementation sprint to a specialized agency often yields a faster break-even point.

The Break-Even Horizon

A properly scoped automation pipeline should hit financial break-even in 3 to 4 months. If the projected break-even is over 12 months, the project scope is likely too broad.