AI for Business & Productivity · Intermediate level

Intermediate level · Module 4: Choosing and Evaluating AI Tools · Lesson 3 of 3

Costs and Value

Calculate whether an AI tool saves more than it costs, including subscriptions and checking time.

In this lesson you will

  • Calculate monthly costs and time-based value
  • Present value calculations honestly

Key concepts

subscription costhours savedchecking timenet value

The lesson

Costs include subscriptions (usually billed in USD), setup time, training and the time staff spend checking outputs. Convert to SSP with a clearly labelled, current rate when presenting locally.

Value includes time saved multiplied by the cost of staff time, plus quality improvements such as faster replies or fewer errors.

Present the calculation transparently with its assumptions, so the owner can change them and see the effect.

Step by step

  1. List all costs of the chosen tool.
  2. Estimate hours saved from the trial.
  3. Subtract checking time.
  4. Calculate the monthly net value.
Worked calculation

Is the AI subscription worth it?

Monthly value of an AI assistant for drafting replies and reports, including checking time.

One office assistant using a paid AI assistant; staff time valued at 3 USD per hour (illustrative figures — use your own)
ItemWorkingAmount
Time saved drafting5 hours per week × 4 weeks20 hours
Value of time saved20 hours × 3 USD60 USD
Extra checking time1 hour per week × 4 weeks × 3 USD12 USD
Subscriptionmonthly plan20 USD
Net monthly value60 − 12 − 2028 USD

Explanation

The tool is worth paying for under these assumptions, but the margin is modest: if checking took 2 hours a week instead of 1, the net value would fall to 16 USD.

Convert to SSP with a clearly dated exchange rate when presenting to local management, and add quality benefits — faster customer replies, fewer errors — in words.

Check your understanding

Value minus all costs: 60 USD − (12 + 20) USD = 28 USD.

Practice activity

Calculate the monthly value of the better tool for the chosen organisation.

Expected result: A transparent value calculation with stated assumptions.

Check your understanding

  1. Which time must be subtracted from time saved?

    Show answer

    Time spent checking and correcting AI output.

  2. Why state assumptions in a value calculation?

    Show answer

    So decision-makers can check and change them.

Taught live by an instructor — online or in person. Free course lessons are for self-study and do not lead to a certificate — see registration options.