AI for BusinessLesson 3
Lesson 37 min
Measuring ROI
Prove value with a baseline and a simple ROI formula.
What you will learn
- ✓Why you must baseline first
- ✓The ROI formula
- ✓Counting hidden costs
Explanation
You can't show improvement without a baseline — measure the current cost or time before you deploy AI.
Then ROI is simple: (value gained − cost) ÷ cost. Value might be hours saved, revenue gained, or errors avoided.
Don't forget hidden costs: API usage, integration, and ongoing oversight. A project that looks cheap can be costly once you count maintenance.
Real-world use
If an AI tool saves 200 hours/month at $40/hour ($8,000) and costs $2,000 to run, ROI = (8000-2000)/2000 = 300%.
Common mistakes
- • Skipping the baseline, so you can't actually prove the AI helped.
Practice
Pick a task and estimate its current monthly cost (the baseline) in hours or dollars.
Knowledge check
0/1 answered1. Why measure a baseline before deploying AI?
Answer all questions to check.