How to Measure the ROI of AI Automation
Brevard Nelson
"What's the ROI?" It's the first question every stakeholder asks about AI automation — and it's the question most teams struggle to answer. Not because the ROI isn't there, but because they're measuring the wrong things.
Beyond time savings
Time saved is the most obvious metric, but it's rarely the most important one. A more complete picture includes:
- •Throughput: How much more output can your team produce with the same resources?
- •Error reduction: How many fewer mistakes are made in automated vs. manual workflows?
- •Speed to market: How much faster can you launch campaigns or deliver client work?
- •Team satisfaction: Are your people spending more time on meaningful work?
Setting up measurement
Before you automate anything, document your baseline. Track how long key workflows take, how often errors occur, and what your current throughput looks like. Without a baseline, you can't measure improvement.
A practical framework
We recommend tracking three categories:
Direct cost savings
Calculate the hours saved per week, multiply by your blended labor rate. This is the most straightforward metric and usually the easiest to communicate to leadership.
Revenue impact
Look at whether automation has enabled your team to take on more clients, deliver faster, or improve campaign performance. These gains are harder to measure but often represent the biggest returns.
Quality improvements
Track error rates, revision cycles, and client satisfaction scores before and after automation. Quality improvements compound over time and directly impact client retention.
What good ROI looks like
Most well-implemented AI automations deliver 3-5x ROI within the first six months. The key word is "well-implemented" — rushed or poorly scoped automations often fail to deliver meaningful returns.
Start focused, measure rigorously, and scale what works.