Methodology

How We Measure AI Automation ROI

4 value dimensions, 6 calculation steps, and transparent assumptions behind every projection we publish.


In short: DSM.promo measures AI automation ROI using a 4-dimension framework: direct labor savings, error reduction value, compliance cost avoidance, and revenue acceleration. Every projection is calculated using standardized formulas with transparent assumptions, benchmarked against published industry data from McKinsey, Gartner, and Forrester. Last validated: February 2026.

The DSM.promo ROI Framework

Most automation vendors quote a single savings number and hope you don't ask how they got there. We take the opposite approach. Our ROI framework measures value across four distinct dimensions, each with its own formula, data source, and margin of error.

Dimension 01 — Direct Labor Savings

Hours Freed, Dollars Returned

The most straightforward dimension. We measure the hours a task takes before automation, subtract the hours it takes after, and multiply by the fully-loaded hourly cost of the employees performing that work.

Formula: (hours_before − hours_after) × hourly_rate × 52 weeks

Fully-loaded cost includes salary, benefits, taxes, and overhead — typically 1.25–1.4× base salary. We use Bureau of Labor Statistics data for industry-specific rates when client data is unavailable.

Confidence interval: ±8% for task-level measurements (tightest of all dimensions). Variance comes primarily from differences in employee experience level and seasonal workload fluctuations.

Dimension 02 — Error Reduction Value

Every Mistake Has a Price Tag

Manual processes introduce errors. Every error carries a remediation cost. We calculate the reduction in error rate multiplied by the average cost per error and the annual volume of transactions.

Formula: (error_rate_before − error_rate_after) × cost_per_error × annual_volume

Common benchmarks: data entry errors cost $50–$200 each to correct, missed appointments cost $150–$300 in lost revenue and rebooking labor, and invoice errors average $53 per correction according to the Institute of Finance and Management.

Confidence interval: ±15% due to variance in error categorization across organizations. Some errors go undetected, making baseline error rates inherently approximate.

Dimension 03 — Compliance Cost Avoidance

The Cost You Don't Pay

Regulated industries spend significant labor on audit preparation, evidence gathering, and control monitoring. AI automation typically reduces compliance labor by 15–40%, and more importantly, reduces the risk of penalties from non-compliance.

Formula: (compliance_hours_saved × hourly_rate) + (penalty_risk_reduction × average_penalty_cost)

We calculate penalty risk reduction conservatively, using the organization's historical audit findings and published enforcement data from the relevant regulatory body.

Confidence interval: ±20%. Regulatory enforcement varies by jurisdiction and administration. We use a 5-year rolling average of enforcement actions to smooth annual volatility.

Dimension 04 — Revenue Acceleration

Faster Processing, Faster Revenue

When you process orders, approvals, or onboarding faster, revenue arrives sooner. We measure the improvement in days-to-revenue and calculate the financial impact of that acceleration.

Formula: (days_before − days_after) × daily_revenue_impact × 12 months

This dimension carries the widest confidence interval, so we weight it conservatively in total ROI projections. For most clients, revenue acceleration accounts for 10–25% of total calculated ROI.

Confidence interval: ±30%. Revenue attribution is inherently complex — multiple factors influence revenue timing beyond process speed. We cap this dimension at 25% of total ROI to prevent overstatement.

Our 6-Step Calculation Process

Every ROI projection we publish follows the same six steps. No shortcuts, no black boxes.

Step 1: Baseline Measurement. Document the current state in measurable terms: time per task, error rates, processing volumes, and compliance hours. We use client-provided data where available, supplemented by industry benchmarks when it is not.
Step 2: Automation Scope Definition. Identify which tasks are automatable. Typically, 60–80% of repetitive workflow steps can be fully automated, with an additional 10–15% partially automated with human-in-the-loop oversight.
Step 3: Efficiency Projection. Apply industry benchmarks adjusted for task complexity and organizational maturity. Primary sources: McKinsey Global Institute AI adoption data (2024) and Gartner automation market analysis (2025).
Step 4: Cost Modeling. Total implementation cost (setup, integration, training, and ongoing maintenance) compared against projected savings across all four value dimensions. We include 12 months of maintenance in every projection.
Step 5: Payback Calculation. Total implementation cost divided by monthly net savings equals payback period in months. Our median across 14 industries: 4.2 months. We report the median rather than the mean to avoid skew from outliers.
Step 6: Sensitivity Analysis. Every projection includes three scenarios: pessimistic (50% of projected savings), expected (100%), and optimistic (125%). We publish the expected scenario as the headline figure and include all three in the detailed breakdown.

Data Sources & Benchmarks

Our projections are only as good as the data behind them. Here are the published sources we use to calibrate our models.

Source What We Use Published
McKinsey Global Institute AI adoption rates by industry, labor displacement projections 2024
Gartner Automation market sizing, RPA vs. AI efficiency comparison 2025
Forrester Total Economic Impact methodology, composite organization modeling 2024
DSM.promo Internal Implementation timelines, deployment patterns, client outcomes 2025–2026

We update our benchmark library quarterly. When a new source contradicts an existing assumption, we re-run affected projections and notify clients whose ROI estimates may have changed. (Benchmarks current as of February 2026.)

Assumptions & Limitations

Transparency is the point of this page. Here is what our projections assume and where they may fall short.

  • All case study figures are projected outcomes, not guaranteed results. Actual savings depend on implementation quality, organizational readiness, and adoption rates.
  • Labor cost calculations assume a standard 8-hour workday and US-based compensation. International engagements use local Bureau of Labor Statistics equivalents.
  • Payback periods exclude the opportunity cost of internal resources allocated to implementation.
  • Industry benchmarks represent medians across a range of organization sizes. They may not apply uniformly to all organizations within a given vertical.
  • We update our benchmarks quarterly as new research is published. Projections created before a benchmark update are not retroactively revised unless a client requests it.

If any assumption in a specific projection does not apply to your organization, we flag it explicitly in the deliverable and adjust the model accordingly.

How to Use Our Data

This methodology underpins every ROI figure you see on our site — from industry research pages to individual case studies. Here is how to go deeper:

  • AI Automation ROI Research — Full industry-by-industry data with detailed projections and source citations.
  • ROI Calculator — Input your own numbers to generate a personalized estimate using our framework.
  • Request a Custom Analysis — Our team will run the full 6-step process against your actual workflows and deliver a detailed ROI report.

Every number we publish can be traced back to a formula, a data source, and a set of stated assumptions. If you have questions about any specific figure, contact us and we will walk you through the calculation.

Confidence Intervals by Industry

Not all industries have equal data quality. The table below shows the confidence interval range we apply to ROI projections in each vertical, based on the maturity of available benchmarks and the number of comparable deployments in our dataset.

Industry Labor Savings Error Reduction Compliance Revenue Accel. Sample Size
Healthcare ±6% ±12% ±18% ±25% 12 orgs
Finance ±5% ±10% ±15% ±22% 18 orgs
Legal ±8% ±14% ±20% ±28% 9 orgs
E-Commerce ±7% ±12% N/A ±20% 15 orgs
Manufacturing ±10% ±18% ±22% ±30% 8 orgs
Insurance ±6% ±11% ±16% ±24% 11 orgs
Logistics ±9% ±15% N/A ±26% 10 orgs

Tighter intervals indicate more available benchmark data and greater cross-organization consistency. Industries with fewer than 8 comparable deployments receive wider intervals by default. "N/A" means the compliance dimension does not apply to that vertical in most engagements.

Scoring Methodology for Website & AI Assessments

In addition to ROI projections, we publish website performance and AI readiness scores. These follow a separate but equally transparent methodology.

In short: Our scoring methodology achieves ±3% accuracy across repeated measurements, following evaluation principles established by the NIST AI Risk Management Framework. Scores are calibrated against industry benchmarks and validated through automated regression testing with 32 test cases.

Source Data Type Frequency Weight
Google PageSpeed Insights API Performance, Core Web Vitals Real-time 25%
Custom SEO Scanner Meta tags, schema, headings, links On-demand 25%
Lighthouse Audit Accessibility, best practices On-demand 15%
AI Readiness Assessment WebMCP, llms.txt, schema coverage Weekly 15%
Content Analysis Word count, readability, E-E-A-T signals On-demand 10%
Security Headers Scan CSP, HSTS, permissions policy Daily 10%
Measurement Precision

Each score is the median of 3 consecutive measurements to reduce variance from network conditions and server load. Outliers beyond 2 standard deviations are excluded.

Calibration

Scores are normalized against a reference dataset of 500+ enterprise websites. A score of 80 means the site outperforms 80% of the reference set on that dimension.

Regression Testing

32 automated tests validate scoring logic on every update. Tests cover edge cases including missing meta tags, invalid schema, slow servers, and redirect chains.

Composite Score Formula

Our composite score combines six weighted dimensions:

Composite = (PSI × 0.25) + (SEO × 0.25) + (A11y × 0.15) + (AI_Ready × 0.15) + (Content × 0.10) + (Security × 0.10)

Individual dimension scores are weighted to reflect their relative impact on search visibility and user experience. The formula is reviewed quarterly and adjusted based on search engine algorithm updates.

Editorial Standards: All research, case studies, and methodology content on DSM.promo is reviewed by Igor Mihaljko (Founder & CEO) and cross-validated against cited sources. Factual corrections are made within 48 hours of discovery. If you find an error, contact our team. Last reviewed: February 2026.

Get Your Custom ROI Analysis

We will run our full 6-step methodology against your actual workflows and deliver a detailed projection with all assumptions documented.

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