WhereAI

Guide

AI ROI: capacity value is not cash savings

AI ROI is honest only when capacity and cash are kept separate. Capacity value is the hours an AI-assisted process returns multiplied by what those hours cost. It becomes cash only when you reassign the time, avoid a hire or grow without adding people. Revenue effects belong in a separate, clearly labelled scenario.

Updated

The three numbers to keep apart

  • Capacity value: hours returned × loaded hourly cost. Real, but not cash.
  • Cash effect: spend that actually stops (overtime, contractors, an avoided hire), minus tool and running costs.
  • Revenue scenario: a conditional estimate, e.g. faster lead response × your conversion rate × customer value. It is a what-if, not a forecast.

Use ranges and ceilings, not point estimates

Only part of a task is usually addressable. State the addressable share as a range and treat the top of the range as a ceiling. Subtract review time: if every output needs checking, the net gain can be small or even negative.

Illustrative example · not a benchmark

Invoice processing, worked through

Current load312 hrs/yr at your rates ≈ $17K capacity
Addressable share35–55%
Capacity returned≈ 110–170 hrs/yr
Cash effectOnly if the time is redeployed or spend avoided

Illustrative arithmetic on example inputs. Not a benchmark or guarantee.

When AI is not worth it

  • When net hours after review are near zero or negative.
  • When the business case depends on blending capacity and revenue into one figure.
  • When running costs exceed the realistic cash effect and capacity isn't needed.

Compare your own opportunities

The free Opportunity Map ranks what you enter on value and ease, with every assumption shown. About 6 minutes, no signup.

Questions

How do you calculate AI ROI for a workflow?
Multiply weekly hours by people and weeks to get annual hours. Apply an addressable-share range, subtract review time, and value the result at the loaded hourly cost. Report that as capacity, and model cash separately.
Why doesn't WhereAI show one ROI number?
One number hides whether the value is time, cash or a revenue scenario. Showing them separately keeps the decision honest.