ROI Analysis: How to calculate the economic benefits of an AI knowledge database

Introduction: More than just a cost factor

The investment in an AI [knowledge database](/services/ki knowledge database) is often considered primarily in terms of cost. However, to make a sound entrepreneurial decision, a holistic view of the Return on Investment (ROI) is essential. The ROI sets the profits or savings achieved in relation to the capital employed and indicates when and to what extent an investment is profitable.

Step 1: Determine investment costs (TCO)

First, all costs associated with the introduction and operation must be covered – the Total Cost of Ownership (TCO).

Cost point SaaS solution Open source solution

Licenses/hosting 12,000 € 3.000 €

Implementation 2,000 € 15,000 €

Maintenance/Support 0 € 10,000 €

**Total (TCO Year 1) ** *14.000 € * *28.000 € *

Step 2: quantify the benefit

Benefits 1: Increase efficiency through reduced search times

Formula: Savings = Employee × Reduced search time × hourly rate × working days

Example: 50 employees save 15 minutes a day at an hourly rate of 45€ on 220 working days.

Annual savings:

123.750 €

Benefits 2: Increased efficiency in customer service

Example: 50,000 requests per year, AHT reduction by 2 minutes, hourly rate 40€.

Annual savings:

€ 66,000

Benefits 3: Reduced onboarding costs

Example: 10 new employees, saved 20 hours of working time, mentor rate 50€.

Annual savings:

10,000 €

Step 3: Calculate the ROI

ROI formula: ROI = ((total benefit - TCO) / TCO) × 100

Example bill (SaaS solution in the first year):

Total benefit: 123.750 € + 66.000 € + 10,000 € = **199.750 € * *

Return on Investment:

1.326 %

For each invested euro you will earn a profit of €13.26

Qualitative factors do not forget

Not all advantages can be measured directly in euro, but should be taken into account in the decision:

• Improved decision quality: Better informed decisions bring strategic benefits

• Higher employee satisfaction: Less frustration in information search

• ** Increased innovation:** Easy access to knowledge promotes new ideas

• **Central guidelines reduce risks

Conclusion: A rewarding investment

The systematic calculation of the ROI makes it clear that an AI knowledge database is far more than a pure IT tool. It is a motor for efficiency, quality and employee satisfaction. Even if the initial costs may appear high, the potential savings and productivity gains show that the investment pays off quickly and significantly in most cases.

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