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AI

Calculating ROI on AI Chatbots

Priya Sharma, Head of AI, Digital AdWordsApr 20, 20265 min read

Framework and formulas to justify chatbot investment to stakeholders.

Key Takeaways

  • •ROI = (savings + revenue lift − cost) ÷ cost
  • •Measure deflected tickets and faster lead response
  • •Include implementation and monthly platform costs
  • •Pilot for 90 days before full rollout

AI chatbots are easy to pitch and hard to justify without numbers. This framework helps marketing and operations leaders build a business case executives will approve.

Cost Savings

Estimate tickets or chats handled by the bot without human agents. Multiply deflected volume by average cost per contact (fully loaded agent cost ÷ contacts per hour × handle time).

Revenue Impact

Track leads qualified by the bot and apply your MQL-to-customer conversion rate and average deal size. Faster response times often lift conversion 15–30% on high-intent traffic.

Total Cost of Ownership

Include build/integration (one-time), monthly LLM/API fees, platform subscription, and internal maintenance hours. Compare against 12-month savings for payback period.

  • Example: 5,000 chats/mo × 70% deflection × $4/contact = $14,000/mo savings
  • Implementation: $25,000 one-time + $2,000/mo operating
  • Payback often under 4 months for mid-volume support teams

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