What is a good ROI on AI?

There is no single figure. It depends on what the spend replaces or adds. Compare return to spend by use case and by function, against a baseline. The Automation Report places its readings, not a return, as percentiles against companies of the same sector, country and size. No placement is read from fewer than five companies.

Is time saved a valid measure of AI ROI?

Only as an input. Hours saved become a return when they go to work that earns or saves money. The UK government evaluation published in 2025 found small time savings and no evidence of improved productivity.

What do boards want to see on AI ROI?

The AICD guide asks directors whether they have agreed measures of AI progress and success, including return on investment. A useful answer gives a number in money, by function, with its source stated. The Board Summary of the Automation Report states recoverable annual productivity, the weakest reading and the widest gap.

Can you measure the return on AI that staff use without approval?

Only once you know it is there. The AICD guide notes staff may use AI tools on a shadow basis, without formal oversight. The Automation Report reads tools and workflows from each function head's account in recorded sessions. Tools a function head does not know about are outside it.

What does the Automation Report cost?

A$24,000 to commission, covering the report, three Quarterly Reviews and the Annual Report. The fee is fixed before any session.

How do you measure AI ROI?

Measure what AI changes in money: cost removed, revenue added, or capacity moved to other work. Measure it by use case and by function, against a baseline taken before the change. Usage counts and hours saved are inputs, not returns.

A UK government evaluation of an AI assistant found small time savings, but no evidence they had led to improved productivity. Start with three numbers per function: what AI costs, what share of workflows it touches, and whether anyone measures the outcome.

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Why are usage and time saved weak proof?

Usage shows that a tool is switched on.

It does not show what changed.

Time saved shows a task got quicker.

It does not show that the hours went to work that earns or saves money.

The UK Department for Business and Trade piloted an AI assistant with 1,000 staff from October to December 2024, and published its evaluation in August 2025. 72% of respondents were satisfied or very satisfied. Most use cases saved small amounts of time. The evaluation "did not find evidence that time savings have led to improved productivity". It also notes that productivity was not a key aim, so little data was collected on it.

What do directors' guides say about measuring AI returns?

The AICD's 2026 guide for directors gives a full part to measuring AI returns. It says ROI assessments should focus on specific, measurable use cases, and test whether the investment has delivered efficiency and better outputs. It also notes that gains in individual productivity do not automatically reach the bottom line.

Board pack · page 1

Issuerkn0w

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Issued2026-05-23

Versionv2.1

The answers.

Is AI spend producing a return, or merely being spent?

What is spent is tracked. Outcomes reads Systematic, 63; the investment itself reads Early-stage, 42. The company measures its AI better than it funds it.

Spend 42 · Early-stageOutcomes 63 · Systematic

What should you measure instead?

MeasureWhat it showsWeak substitute

Spend by functionWhat AI and automation cost, and whereLicence count

Share of workflows with an AI or automation componentHow far AI reaches into the workNumber of tools

Outcomes measured and reportedWhether anyone tracks the returnAdoption rate

Gap between the CEO's view and the function heads'Whether the picture at the top matches the workOne leader's estimate

These four make a return measurable. They are not the return itself. In the Automation Report they are the Spend, Workflows and Outcomes readings, and the gap.

What does the Automation Report read, and what does it not?

The Automation Report does not calculate AI ROI. It reads six things from recorded sessions with the CEO and six function heads: Workflows, Tools, Skills, Oversight, Spend and Outcomes. Spend is annual investment in AI and automation, by function. Outcomes reads whether each function measures and reports what AI and automation return.

The Board Summary states recoverable annual productivity: a structural estimate in the company's currency, with a confidence flag. It is not a forecast. It is left out where the peer set has fewer than five companies.

Every report carries three required actions. Each is owned by a function, dated 30, 60 or 90 days from issue, and states the condition on which it closes.

Issuerkn0w

Report000142

Issued2026-05-23

Versionv2.1

Recoverable annual productivity

A$747,000

Structural estimate · conservative floor

ConcentrationRecoverableClosed by

Merchant onboarding KYC · Operations~A$188,000Required Action 1

Internal product-analytics LLM · Growth & Revenue~A$309,000Required Action 2

Compliance & Risk and Finance~A$118,000Required Action 3

Customer Success — balance to the total~A$132,000General governance programme

Sample report · the company and its figures are fictional

Frequently asked questions

What is a good ROI on AI?: There is no single figure. It depends on what the spend replaces or adds. Compare return to spend by use case and by function, against a baseline. The Automation Report places its readings, not a return, as percentiles against companies of the same sector, country and size. No placement is read from fewer than five companies.
Is time saved a valid measure of AI ROI?: Only as an input. Hours saved become a return when they go to work that earns or saves money. The UK government evaluation published in 2025 found small time savings and no evidence of improved productivity.
What do boards want to see on AI ROI?: The AICD guide asks directors whether they have agreed measures of AI progress and success, including return on investment. A useful answer gives a number in money, by function, with its source stated. The Board Summary of the Automation Report states recoverable annual productivity, the weakest reading and the widest gap.
Can you measure the return on AI that staff use without approval?: Only once you know it is there. The AICD guide notes staff may use AI tools on a shadow basis, without formal oversight. The Automation Report reads tools and workflows from each function head's account in recorded sessions. Tools a function head does not know about are outside it.
What does the Automation Report cost?: A$24,000 to commission, covering the report, three Quarterly Reviews and the Annual Report. The fee is fixed before any session.

Published by kn0w, 4 October 2026.

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