Strategy & Adoption / Building the Business Case
AI Business Case Template
Structured, data-driven worksheet enabling enterprises to model financial outcomes and assess risks for AI initiatives. Includes inputs for cost, revenue impact, and risk factors, plus calculators for ROI, NPV, and risk-adjusted returns.
This interactive worksheet guides enterprise buyers and strategists through a rigorous AI business case process. It incorporates financial inputs, calculates expected returns, and evaluates risks quantitatively to support investment decisions.
By capturing relevant cost drivers, revenue impact assumptions, and operational risks, users generate metrics such as ROI, net present value (NPV), and risk-adjusted returns tailored to their specific AI initiatives.
Inputs
Total upfront capital and implementation expenses in US dollars.
Recurring costs including licensing, maintenance, and support.
Expected operational duration for the AI solution.
Incremental revenue attributed to AI capabilities each year.
Reduction in expenses due to AI deployment.
Weighted average cost of capital or required rate of return.
Percentage to discount forecasted benefits accounting for project risk.
Calculators
NPV = sum[((revenue_increase + cost_savings - operating_cost) / (1 + discount_rate)^year)] - initial_investmentROI = ((sum(revenue_increase + cost_savings) - (initial_investment + sum(operating_cost))) / (initial_investment + sum(operating_cost))) * 100Risk Adjusted Return = NPV * (1 - risk_factor)Business Case Summary
Best practice
Include conservative estimates for revenue and cost savings to offset optimism bias. Validate discount rates against corporate finance guidelines. Factor in qualitative risks separately to complement financial metrics.
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