TUTORIAL 01

Calculate the return on an AI project

Separate time saved from money saved.

PRACTICAL GUIDE

The steps

STEP 01

Set the workflow size

Enter the people involved, recoverable hours and loaded hourly cost. Use measured averages from a representative period. These inputs calculate potential annual capacity value.

STEP 02

Choose a realistic realization rate

Enter the share of that capacity that will become an actual expense reduction or avoided cost. Identify the specific expense or hiring decision behind the number.

STEP 03

Include implementation and operations

Add monthly AI operating costs and one-time implementation. If you include extra revenue, apply contribution margin and avoid double-counting recovered capacity.

STEP 04

Explore the valuation sensitivity

Move the EBITDA multiple slider between 1× and 30×; it starts at 8×. The resulting enterprise value estimate assumes the recurring benefit qualifies as sustainable EBITDA and the multiple remains unchanged.

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