How to Calculate ROI for a Customer Service AI

Investing in Customer Service AI can significantly reduce costs and improve efficiency, but how do you measure its Return on Investment (ROI)?

Let’s break it down using a realistic scenario.


Step 1: Estimate AI Usage

• Your AI is expected to handle 10,000 inquiries per year.
• A human agent can handle 30 inquiries per day (on average).

Now, let’s determine how many human agents would be required to handle this workload manually.

Step 2: Calculate Headcount Savings

• A full-time agent works 5 days a week, handling 150 inquiries per week.
• That’s 600 inquiries per month and 7,200 per year (assuming no leave).
• To handle 10,000 inquiries per year, you would need:

10,000 / 7,200=1.39 (full-time agents)

• Cost per agent: $80,000 AUD per year
• Total cost for 1.39 FTE:

80,000×1.39=111,200 AUD 

By using AI, you can save up to $111,200 in wages annually.

Note: This amount is not taken into consideration of the super, workers compensation, payroll tax etc

Step 3: Factor in AI Costs

Upfront Investment (Year 1)

• Implementation & Software: $30,000 (one-time cost)
• Annual maintenance & updates: $10,000 per year

Ongoing Cost (Year 2 and beyond)

Only the annual maintenance fee of $10,000 per year

Step 4: Calculate ROI

ROI formula:

ROI=Savings−CostCost×100%ROI = \frac0{Cost} \times 100\%ROI=CostSavings−Cost​×100%

Year 1 ROI (including implementation cost)

ROI= (111,200−40,000) / 40,000×100%  = 178%

Year 2+ ROI (without implementation cost)

ROI= (111,200−10,000 ) / 10,000 ×100% = 1,012%

Yes, that’s over 1,000% ROI from Year 2 onwards! 🚀

Step 5: Consider Indirect Benefits

AI doesn’t just save money—it also improves operations:
✅ 24/7 availability: AI can handle inquiries anytime, unlike human agents.
✅ Faster response times: No wait times = higher customer satisfaction.
✅ Scalability: As your business grows, AI can handle more inquiries at no extra cost.
✅ Less employee turnover: Since AI handles repetitive tasks, human agents can focus on higher-value work, reducing burnout.

Final Thoughts

With an ROI of 178% in Year 1 and 1,012% from Year 2 onwards, investing in a Customer Service AI is a game changer.

For businesses handling high inquiry volumes, AI can replace multiple support agents while maintaining a high-quality customer experience.

🚀 Ready to calculate your own AI ROI? Let’s chat.