Free Resource

AI ROI Calculator for SMEs

Calculate the return on investment from AI training. A practical, step-by-step guide with formula, benchmarks, and a template you can use today.

25% of UK SMEs cite uncertainty around ROI as a key barrier to AI adoption. This guide gives you a simple, defensible method to calculate the business case for AI training.

The AI ROI Formula

(Hours saved × Hourly cost) + Error reduction value − Investment = Net ROI

5 Steps to Calculate Your AI Training ROI

Identify 3-5 Repeatable Workflows

Choose workflows that are frequent, measurable, and involve text-heavy tasks. The best candidates for AI assistance are:

  • Drafting customer emails and proposals
  • Summarising meeting notes and action items
  • Creating first drafts of reports and documents
  • Researching competitors or market trends
  • Responding to common customer enquiries

Tip: Start with workflows your team does at least weekly. Monthly tasks are harder to measure quickly.

Measure Current Time and Cost

For each workflow, record:

  • Time per task: How many minutes does it take today?
  • Frequency: How many times per week/month?
  • Staff cost: Hourly rate including overheads (typically 1.3× salary)
  • Error rate: What percentage requires rework or correction?

Example: Proposal Drafting

Current time: 90 minutes per proposal

Frequency: 8 proposals per week

Staff cost: £35/hour (including overheads)

Weekly cost: 12 hours × £35 = £420/week

Estimate AI-Assisted Improvements

Research from McKinsey and MIT suggests AI typically saves 30-50% time on text-heavy tasks. For your calculations:

  • Conservative estimate (early adoption): 25% time reduction
  • Moderate estimate (established use): 35% time reduction
  • Optimistic estimate (mature implementation): 50% time reduction

Start with the conservative figure. You can always revise upward once you have real data.

Example: Proposal Drafting (continued)

Current time: 90 minutes

With AI (35% reduction): 58 minutes

Time saved per proposal: 32 minutes

Weekly time saved: 8 × 32 = 256 minutes (4.3 hours)

Weekly savings: 4.3 hours × £35 = £150/week

Calculate Annual Savings

Multiply your weekly savings by 52 weeks, then add any error reduction value:

Annual benefit = (Weekly time savings × 52) + Error reduction value

Example: Full Calculation

Time savings: £150/week × 52 = £7,800/year

Error reduction: 2 fewer revision rounds/week × 30 mins × £35 × 52 = £1,820/year

Total annual benefit: £7,800 + £1,820 = £9,620

Training investment: £1,495 (full programme)

Net ROI: £9,620 − £1,495 = £8,125 (544% return)

Track and Validate

After AI training, measure actual improvements at regular intervals:

  • Week 4: Initial confidence check. Are teams using AI regularly?
  • Week 8: First productivity measurement. Compare actual vs. estimated savings.
  • Week 12: Full ROI assessment. Calculate realised value and adjust projections.

Most SMEs see positive ROI within 8-12 weeks when teams consistently apply AI to daily work.

Industry Benchmarks

30-50%
Time saved on text-heavy tasks
8-12 weeks
Typical break-even period
3-5×
First-year ROI target

Copy/Paste ROI Worksheet

Use this template to calculate ROI for your business. Fill in your own numbers.

AI TRAINING ROI WORKSHEET
========================

WORKFLOW 1: ________________________
Current time per task (mins):     ____
Tasks per week:                   ____
Staff hourly rate (£):            ____
Current weekly cost:              £____

Estimated time reduction (%):     ____
Time saved per task (mins):       ____
Weekly time saved (hours):        ____
Weekly savings:                   £____
Annual savings:                   £____

WORKFLOW 2: ________________________
Current time per task (mins):     ____
Tasks per week:                   ____
Staff hourly rate (£):            ____
Current weekly cost:              £____

Estimated time reduction (%):     ____
Time saved per task (mins):       ____
Weekly time saved (hours):        ____
Weekly savings:                   £____
Annual savings:                   £____

WORKFLOW 3: ________________________
Current time per task (mins):     ____
Tasks per week:                   ____
Staff hourly rate (£):            ____
Current weekly cost:              £____

Estimated time reduction (%):     ____
Time saved per task (mins):       ____
Weekly time saved (hours):        ____
Weekly savings:                   £____
Annual savings:                   £____

SUMMARY
=======
Total annual savings:             £____
Error reduction value:            £____
Total annual benefit:             £____
Training investment:              £____
NET ROI:                          £____
ROI percentage:                   ____%
Break-even (weeks):               ____

Frequently Asked Questions

What is a good ROI for AI training investment?

Most SMEs should target at least 3:1 ROI within the first year—£3 in measurable value for every £1 invested. High-performing implementations achieve 5:1 or higher through consistent application across multiple workflows.

How long does it take to see ROI from AI training?

Teams typically show productivity gains within 4-8 weeks of consistent AI use. Most SMEs break even on training investment within 8-12 weeks. Sustained competitive advantage builds over 3-6 months as fluency deepens.

Should I include soft benefits in my ROI calculation?

Focus on hard, measurable benefits first (time saved, errors reduced, output increased). Soft benefits like improved employee satisfaction, reduced stress, and better decision quality are real but harder to quantify. They're best mentioned alongside your numbers, not instead of them.

Ready to build your business case?

Let's discuss how AI training could work for your business. In a short orientation call, we'll identify your highest-value workflows and estimate realistic ROI.

Book a short orientation call

Or explore our AI workshops to see how training is delivered.