AI, explained › Cost & ROI

Cost & ROI.

What AI costs to buy and run, and how to tell whether it is paying for itself.

What it is.

  • Most business AI is a monthly subscription per person, typically A$30 to A$45 a month for tools like ChatGPT, Claude or Microsoft 365 Copilot.
  • Google Workspace now includes Gemini in its business plans, from A$19.80 per user a month.
  • Custom AI built on cloud platforms is charged by usage, plus the cost of setting it up.

Why it matters to you.

  • Licences are the small cost. Set-up, data clean-up and training staff are usually bigger.
  • Payback comes from hours saved and errors avoided. Measure the task before you start so you can prove the gain.
  • Many firms report productivity gains but far fewer see it on the bottom line. A clear measure from day one is the difference.
$time Payback Cost Value: time and money saved Measure before and after, from day one

Terms you will hear.

Subscriptions

A flat monthly fee per person, such as a ChatGPT, Claude or Copilot licence. Easy to budget, easy to over-buy.

Usage costs

Paying for how much text the AI reads and writes, measured in tokens (roughly three quarters of a word). Cost grows with use.

Payback

How long until the time and money saved cover what you spent. A well-chosen first project should show its payback early.