AI Business Case Template | Practical SME Guide

An AI business case should explain why a project deserves time and money. It should not depend on broad market statistics or an optimistic claim about hours saved. The strongest case begins with the organisation's own process, cost and evidence.

Use this structure before approving a pilot or asking suppliers for proposals.

Describe the current process

Map who starts the work, the steps involved, systems used, handovers, waiting time and common exceptions. Record a baseline using information the business can verify. Include the hidden work, such as rechecking, chasing missing details and repairing poor inputs.

Define the problem

State the problem in operational terms. Examples include slow response, inconsistent document checks, repeated data entry or difficulty finding approved guidance. Explain who experiences the problem and what happens if nothing changes.

Describe the proposed change

Explain the workflow rather than leading with a tool. Show what remains manual, where AI is used and where a person reviews the result. Include a simpler non-AI option so the decision is a real comparison.

Estimate value from local evidence

How often does the task happen?
How much staff time does the current process use?
What errors, delays or missed opportunities can be counted?
What portion of the work could realistically change?
What new review or maintenance work will be created?

Use ranges where evidence is uncertain. Do not turn a successful demonstration into an annual saving before the workflow has been tested in ordinary conditions.

Include the full cost

Record discovery, build, licences, integration, security review, training, internal staff time, monitoring and ongoing support. Include the cost of changing direction or returning to the current process.

Assess risk and dependency

List data, supplier, security, quality, legal, adoption and operational risks. Identify systems or people the project depends on. A promising use case may need to wait until source information or process ownership improves.

Design a decision-making pilot

The pilot should answer the biggest uncertainties with limited exposure. Define the examples, users, success measures, stop conditions and review date. State what evidence would support rollout, revision or closure.

Name the owner

A business owner should be responsible for the outcome and final decision. Technical support can build and explain the workflow, but it cannot own the operational judgement on behalf of the organisation.

Present the decision clearly

Finish with three options: proceed to a controlled pilot, do more discovery or stop. For each option, state the reason, immediate work, owner and next review point. Include the evidence that would change the recommendation. This keeps the business case useful when circumstances change and prevents a cautious decision from being treated as permanent rejection.

Keep the document short enough for the decision-makers to read. Put detailed process maps, supplier material and calculations in appendices that can be checked.