A Simple Method for Quantifying the Benefits of AI in Service Management

Organisations of all sizes are turning to AI to drive efficiency and value in their service management functions. But the question remains, how can you easily and accurately measure the benefits AI brings to your business? Here’s a straightforward six step approach we use, that any organisation can apply.

1. Define Your Use Case and Metrics

Start by identifying the specific AI use cases you’re implementing—such as AI-generated summaries, virtual agents, or automated workflows. For each use case, select a clear metric, like time saved per task or reduction in manual effort.

2. Establish Your Baseline

Before introducing AI, record how much time or resource is currently spent on each process. This baseline gives you a point of comparison to measure improvement once AI is in place37.

3. Track Actual AI Usage and Savings

After deploying AI, monitor how often the AI feature is used and how much time it saves per use. This data can often be collected from your service management platform’s reporting tools.

4. Calculate Total Time Saved

Use this simple formula for each use case:

 Total Time Saved = (Number of AI Actions) × (Time Saved per Action)

For example, if your virtual agent successfully handles 600 requests a month, and each one saves 11 minutes of agent time, the total monthly time saved is 6,600 minutes (or 110 hours).

5. Convert Time Savings into Financial Value

To understand the financial impact, multiply the total hours saved by the average hourly cost of the staff whose work is being automated:

Value ($) = (Total Time Saved in hours) × (Average Hourly Staff Cost)

6. Calculate ROI

Finally, to get a simple ROI percentage, use:

ROI (%) = [(Net Benefits) / (Total Costs)] × 100

Where:

• Net Benefits = Total value of time saved (and any additional revenue or cost reductions)
• Total Costs = All costs related to implementing and maintaining the AI solution1246.

Example Table with calculated savings

Quick Summary

By following these simple steps - defining your use case, establishing a baseline, tracking AI-driven savings, and applying a straightforward formula you can clearly calculate the tangible benefits of AI in your service management operations.

This approach quantifies efficiency gains and also helps justify further AI investment to your stakeholders.