Use a concrete example. Include what starts the work, what decisions follow, and what must happen at the end.
Keep the whole method in view
Work through the three sections below. A blank answer remains an open decision. The first proposal gives you a capability map; return here to confirm how its AI and human steps are costed.
Scope the work: four steps
1. Business requirement to separate capabilities
The proposal breaks the process into individual tasks with inputs, outputs and owners.
2. Assign AI, company systems and people
The four technical questions below determine where AI fits and which controls it needs.
3. Define the limits of the proposed system
Record input limits, quality, access, freshness and response time. For response time, use the time within which 95% of requests must finish. An average is not the same measure.
4. Carry the limits into the proposed scope
The report carries the capabilities, exclusions, assumptions, boundaries and acceptance tests together. It remains a proposed scope until agreed.
Size the use case: four steps
1. Establish demand and count the actual work
After the first proposal, map the resulting AI and human capabilities here. Until then, the budget and ROI remain incomplete.
2. Set token budgets for the distribution of requests
The workload table below sets shares, total input, output, calls and retries. Break down each input here, including the largest case.
3. Price the full operation and assess alternatives
Model prices come from the selected target model. Add all retained staff work, including approvals and exception handling. Group activities performed together once.
Could requests wait for batch processing?
4. Test the fragile assumptions
The report recalculates double demand and a more demanding input distribution, with cold cache, more repeated calls and more staff effort. It shows when a scenario crosses the budget ceiling.
Business value and ROI: four steps
1. Establish today's measured baseline
An assumed baseline can show a what-if calculation. It leaves the measured-baseline step open and cannot establish savings or investment payback.
2. Compare the future state in the same units
Address all five value pillars
Explain the expected contribution, or state why a pillar is not relevant. Different kinds of value should remain visible even when they cannot be priced.
3. Reuse the full recurring cost from sizing
4. Show payback and sensitivity
The calculator keeps build cost separate. It shows payback only for a positive cash case, and tests both half the demand and half the gain per request. Technical feasibility and investment value remain separate decisions.
One report per email address. Revisions of this report do not count as a new one.