Most AI ROI calculations look like this:

• Current process takes 5 hours
• AI reduces it to 3 hours
• 2 hours saved x hourly rate = ROI

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Nicole's problem with this approach?

Without that intention, it’s just sort of like a crystal ball. And you’re like, well, I think... I hope the subscribers will come. I hope the cost savings will come. And I think that’s unfortunately... not the smartest way to do business.

The reality: saved time doesn't automatically translate to business value. If those 2 hours don't result in more revenue, lower costs, or reduced risk, you haven't created real ROI.

Nicole's methodology requires mapping AI investments to one of three business outcomes:

1. Revenue-Generating Solutions

Map directly to business drivers and "show the math" connecting AI to increased revenue.

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Example: AI content personalization for subscription business

• Business Driver: Subscription growth
• AI Solution: Personalized content recommendations
• Measurement: Engagement metrics → subscriber retention → revenue impact
• ROI Calculation: Increased subscription revenue minus AI implementation costs

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2. Cost-Saving Solutions

Understand "the people and the processes behind that to a really specific degree"—calculate exact current costs, then measure precise savings.

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Example: AI for quarterly compliance reviews

• Current Process: Lawyers manually scan regulatory documents
• AI Solution: Automated initial review with recommendations‍
• Measurement: Lawyer hours saved x hourly rate
• ROI Calculation: Personnel cost savings minus AI tool costs