Measuring ROI from AI Automation

## Foundation: Setting Up Your ROI Framework ### Why ROI Measurement Matters Most automation projects fail to demonstrate clear value because they lack proper measurement. This framework changes that. ### The Complete ROI Formula **ROI = (Total Benefits - Total Costs) / Total Costs × 100** ### Key Benefits to Track - **Time Savings**: Hours saved per week/month - **Error Reduction**: Mistakes prevented - **Capacity Increase**: Additional work handled - **Quality Improvements**: Better outcomes - **Employee Satisfaction**: Reduced frustration ### Cost Categories - **Setup Costs**: Initial implementation - **Tool Costs**: Software subscriptions - **Training Costs**: Learning and adoption - **Maintenance Costs**: Updates and fixes

## Creating Your ROI Dashboard ### Dashboard Components 1. **Executive Summary**: High-level ROI numbers 2. **Time Savings Tracker**: Detailed breakdowns 3. **Cost Analysis**: All expenses tracked 4. **Trend Analysis**: Performance over time 5. **Project Pipeline**: Future automation opportunities ### Key Metrics to Display - **Total Annual Savings**: Primary headline number - **Payback Period**: Time to recover investment - **Hours Saved Per Week**: Operational impact - **Error Reduction %**: Quality improvements - **Team Productivity Increase**: Capacity gains