Budgeting for AI should be viewed as an investment in capability rather than just a technology cost. A proportional budgeting approach is recommended:
• Annual Revenue £1-2 million: 5-7% of annual revenue (e.g., £70,000-£140,000)
• Annual Revenue £3-5 million: 4-6% of annual revenue (e.g., £120,000-£300,000)
• Annual Revenue £6-10 million: 3-5% of annual revenue (e.g., £180,000-£500,000)
• Annual Revenue £10+ million: 2-4% of annual revenue (e.g., £200,000+)
Expected ROI includes both direct efficiency savings and strategic value creation:
• Direct Efficiency Savings: 40-70% reduction in administrative time on targeted tasks, reduced outsourcing costs for content creation/research, and faster turnaround times.
• Strategic Value Creation: Enhanced member services quality through personalisation, improved decision-making via better data insights, and increased member engagement.
For solutions like gecco, organisations typically see approximately 1,500 staff-days saved annually (equivalent to 7 full-time roles) and over £800,000 in operational cost reductions per year, with a projected ROI of over 100% over three years.