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Compare the options and costs of an AI solution

Use this process before buying a tool, commissioning development or expanding a pilot. The result is a decision brief: what should improve, which options you have, their cost and the assumptions you need to test.

1. Describe the baseline

Choose a specific process. Record volumes for a defined period, processing and review time, common errors and the cost of correcting them. Record the source and measurement period. Label estimates as estimates.

Example task: preparing information from customer requests. Measure preparation time, review time, completeness and corrections. Speed is not the only possible objective; information availability and quality can matter too.

2. Compare meaningful alternatives

Include the current process, a process change without AI, using an existing tool and any new solution. Consider custom development where a specific requirement cannot be met by available options.

Comparison areaWhat to record for each option
Outcome and qualityHow it handles the task, possible errors and who checks outputs
Data and integrationInputs, permissions, integrations and supplier terms
ImplementationData preparation, configuration, process changes, training and internal effort
OperationLicences or usage, support, output checks, monitoring and maintenance
Change or exitExport, migration, contractual terms and alternatives during an outage
UncertaintyWhat the proposal confirms, what is estimated and what a pilot must test

3. Calculate costs for the same period

Total cost = one-off implementation + operation over the chosen period + required internal work + change or exit costs, where included in the comparison.

Use the same time horizon and workload for every option. Separate supplier charges from employees’ time. Check plan limits, consumption, overage rates and growth assumptions. Use a consistent currency and tax basis.

For uncertain items, prepare lower, base and higher estimates. Do not compare the price of one licence with the entire cost of a custom solution.

4. Test the benefit in a pilot

Choose representative tasks and acceptance criteria in advance. Measure the complete process, including input preparation, review and corrections. Compare the result with the same tasks without the new solution.

Freed staff capacity is not automatically a cash saving. Record whether it will support other work, higher service volume or an actual reduction in a cost. Describe benefits that cannot credibly be monetised separately.

If calculating ROI, use (supported monetary benefit − total cost) / total cost over the same period. Do not use the ratio when cost is zero. Always show the assumptions; a percentage alone is not a decision brief.

5. Prepare a short conclusion

Copy this outline into your decision brief:

  1. Task and baseline: the problem, initial measurements and their source.
  2. Options: including retaining or improving the current process.
  3. Costs: one-off, recurring and internal effort, with period and assumptions.
  4. Pilot result: quality, time, errors, required review and limitations.
  5. Recommendation: continue, revise the brief or stop, with reasons.
  6. Decision and responsibility: who decides, who does the next work and when to review results.

Implementation process · Brief for a custom application · Help preparing a decision