Boards now ask for ROI on AI the same way they ask for ROI on ERP upgrades. Large language model (LLM) investments need a finance-ready framework—not slide-deck anecdotes.
Build the baseline first
Document current cost per ticket, per quote, per audit hour, or per research cycle. Without a baseline, “30% faster” is meaningless.
ROI formula that holds up
Net value = (Labor savings + Revenue uplift + Risk reduction) − (Model + infra + change management + quality remediation).
- Labor savings: hours removed × fully loaded rate × adoption rate.
- Revenue uplift: conversion lift, faster launches, better pricing discipline.
- Risk reduction: fewer compliance findings, lower error rework.
Quality adjustments matter
If agents resolve 40% of tickets but escalate complex cases poorly, net savings shrink. Measure quality-adjusted throughput: successful completions without human rework.
Portfolio reporting
Roll up use cases into a single AI portfolio dashboard: spend, benefit, stage (pilot/production), and owner. Sunset pilots that cannot reach production KPIs within two quarters.
ROI conversations improve when product, finance, and operations share one definition of “done.”