Calculate AI workforce savings with this formula: (replaceable hours/week × 50 weeks × fully-loaded hourly rate × automation rate) − (build cost + annual run cost) = year-1 net saving.
Step 1
Map hours
Step 2
Loaded rate
Step 3
Auto rate
Step 4
Subtract cost
Step 1: List repetitive cognitive tasks per role and estimate hours/week honestly (not optimistically).
Step 2: Use fully-loaded hourly rate (salary ÷ 1,820 × 1.35).
Step 3: Apply a realistic automation rate of 60–75% (not the 95% vendors claim).
Step 4: Subtract year-1 build cost (£8k–£25k) and annual run cost (£6k–£15k).
A 5-person admin team. Each does 18 hrs/wk of replaceable tasks. Loaded rate £30/hr. Automation rate 70%.
Gross saving = 5 × 18 × 50 × £30 × 0.70 = £94,500/yr.
Build £15k + run £10k/yr. Year-1 net = £69,500. Year-2 onward = £84,500/yr.
60–75% is honest. Vendors quote 90%+, reality is 65–70% for most use cases.
Run a 1-week timesheet. Most teams underestimate admin time by 30–40%.