Looking to bring AI into your business but need solid numbers to back your proposal? Here’s how to build a realistic business case based on actual market data, with real costs and timelines from UK implementations.
When you’re making the case for AI investment, accuracy matters. Let’s cut through the hype and look at what UK businesses are actually spending – and saving – with AI implementation in 2024.
The Real Investment: Current Market Costs
Entry-Level Solutions
Suitable for small businesses starting their AI journey:
- Basic Chatbots: £100-300/month
- Email Marketing AI: £50-200/month
- Basic Process Automation: £200-500/month
Implementation Time: 2-8 weeks
Mid-Market Solutions
For growing businesses ready for more comprehensive AI:
- Advanced Analytics: £500-2,000/month
- Multi-Channel Automation: £500-2,000/month
- Predictive Tools: £500-2,000/month
Implementation Time: 1-3 months
Enterprise Solutions
Full-scale AI implementation:
- Comprehensive AI Suites: £2,000-10,000/month
- Custom Solutions: £5,000-20,000/month
- Advanced Integration: £10,000+/month
Implementation Time: 3-6 months
Essential Implementation Costs Often Overlooked
Data Preparation
- Small Business: £2,000-5,000
- Mid-Size Business: £5,000-15,000
- Enterprise: £15,000-50,000+
System Integration
- Basic Integration: £3,000-8,000
- Complex Integration: £8,000-25,000
- Enterprise Integration: £25,000-100,000
Training Requirements
- Basic User Training: £500-1,000 (per 5-10 users)
- Advanced User Training: £1,000-3,000 (per 5-10 users)
- Admin Training: £2,000-5,000 (per 2-3 admins)
Building Your Business Case: Step by Step
Real Example: UK Manufacturing Company
Initial Situation:
- 250 employees
- £50,000 monthly maintenance costs
- 15% downtime on key equipment
AI Implementation Costs:
- Predictive Maintenance AI: £1,000-5,000/month
- Data Preparation: £5,000-15,000
- Integration: £8,000-25,000
- Training: £3,000-8,000
12-Month Results:
- Downtime Reduced: 15% to 4%
- Maintenance Costs: 40% reduction
- ROI Achievement: 14 months
Realistic ROI Timelines
Customer Service AI
- Initial Results: 2-4 months
- Full Benefits: 6-12 months
- Success Rate: 70-85%
Process Automation
- Initial Results: 3-6 months
- Full Benefits: 8-14 months
- Success Rate: 65-80%
Advanced Analytics
- Initial Results: 4-8 months
- Full Benefits: 10-18 months
- Success Rate: 60-75%
Making Your Case: Key Components
Essential Elements
- Current State Analysis
- Quantified process costs
- Error rates and impact
- Resource utilization
- Proposed Solution
- Specific AI capabilities needed
- Implementation requirements
- Total cost of ownership
- Implementation Plan
- Phased approach
- Resource requirements
- Risk mitigation strategies
- Financial Impact
- Full cost breakdown
- Expected savings
- ROI timeline
Common Pitfalls to Avoid
- Underestimating Data Costs: Data preparation often costs 2-3x more than initial estimates
- Ignoring Integration Complexity: Integration typically accounts for 30-40% of total implementation costs
- Forgetting Ongoing Costs: Monthly support and maintenance can add 15-25% to subscription costs
- Unrealistic Timelines: Most implementations take 2-3x longer than initially planned
Your Next Steps
Before starting your business case:
- Download our ROI Calculator Template
- Book a free consultation to review your specific needs
- Get a detailed cost breakdown for your industry
Want to ensure your AI business case is backed by real market data? Book a free consultation with our team. We’ll help you build a realistic proposal based on current market costs and implementation timelines.Get Your Custom Cost Analysis
