Cost Analysis
The True Cost of Human Workforce vs. AI Replacement
Understand the complete cost picture including direct salary, indirect expenses, and determine if your organization meets the minimum size thresholds for positive ROI.
Minimum Department Size for ROI
The minimum number of employees in each department where AI replacement becomes cost-effective
| Department | Min Size | Direct Cost | Indirect Cost | Total Cost |
|---|---|---|---|---|
| Human Resources | 25+ | $75,000 | $45,000 | $120,000 |
| Finance & Accounting | 30+ | $85,000 | $51,000 | $136,000 |
| Customer Service | 40+ | $65,000 | $39,000 | $104,000 |
| Sales & Marketing | 50+ | $90,000 | $54,000 | $144,000 |
| IT & Operations | 35+ | $80,000 | $48,000 | $128,000 |
| Legal & Compliance | 20+ | $95,000 | $57,000 | $152,000 |
Cost Breakdown Analysis
Understanding the full cost of human employees vs. AI replacement
Direct vs. Indirect Costs
When calculating the ROI of AI workforce replacement, it's crucial to consider both direct salary costs and indirect costs that are often overlooked.
Direct Costs Include:
- Base salary
- Bonuses and commissions
- Overtime pay
- Payroll taxes
Indirect Costs Include:
- Health insurance and benefits (15-25% of salary)
- Office space and utilities (10-15% of salary)
- Equipment and technology (5-10% of salary)
- Training and development (2-5% of salary)
- Recruitment and turnover costs (5-10% of salary)
- Management overhead (5-10% of salary)
Key Insight: Indirect costs typically add 60-80% on top of direct salary costs. AI workforce replacement eliminates both direct AND indirect costs, significantly improving ROI.