The ROI of Intelligent Automation: A Practical Guide for SMEs

Using the intelligence of a laptop to interact with artificial intelligence. Automation technology.

In today’s hyper-competitive economy, time is money—and inefficiency is expensive.

For small and mid-sized enterprises (SMEs), intelligent automation has emerged as a powerful lever for saving costs, improving accuracy, and unlocking growth without hiring more staff.

Men with Artificial Intelligence
Men with Artificial Intelligence

But the big question remains:

“Is the ROI worth it?”

At FhosLabs, we’ve helped SMEs across finance, retail, and professional services unlock thousands of hours per year through automation. This guide will help you understand the ROI landscape—and decide whether automation is the right move for your business.

 Understanding the Costs of Automation

Before you see the gains, let’s break down what you’re investing:

1. Technology Setup

  • Tools/platforms (e.g. Power Automate, UiPath, Make, Zapier)
  • Custom software or AI agents
  • API integrations

 Indicative cost: £2,000–£20,000 depending on complexity and scale.

2. Implementation

  • Discovery workshops
  • Process mapping
  • Development and testing

 Good partners (like FhosLabs) focus on rapid, agile delivery to avoid bloated consultancy costs.

3. Maintenance

  • Monitoring & error handling
  • Platform or model updates
  • User training and support

Consider ongoing costs at 10–20% of the initial build per year.

Real-World Metrics That Drive ROI

The beauty of intelligent automation is that its impact is measurable. Here are the three key metrics we focus on:

1. Accuracy

Manual processes are error-prone. AI-powered automation can boost accuracy from 85–90% to 99.5%+

Example: Invoice processing bots reduced financial reconciliation errors by 92% for a logistics SME.

 2. Speed

Bots don’t sleep. Automating routine workflows can cut task completion time by 70–95%

Example: A retail client slashed price update times from 6 hours to 18 minutes.

3. Throughput

Automation scales effortlessly.

Example: A customer service team handled 3x more queries after introducing an AI-powered triage bot.

 How to Calculate ROI: A Simple Framework

Use this 5-step method to assess whether a process is worth automating.

1. Time Spent per Task

Estimate time spent manually (e.g. 15 minutes per invoice)

2. Frequency

Multiply by volume (e.g. 500 invoices/month)

3. Cost of Labour

Convert that time to cost (e.g. £15/hour average staff rate)

4. Automation Efficiency

Estimate post-automation time (e.g. 2 minutes per invoice)

5. Total Monthly Savings

 (Manual cost – Automated cost) = Monthly gain
Add gains from error reduction, faster turnaround, and improved customer experience

 Is Your Process Automation-Ready?

Use this 5-question checklist:

QuestionYesNo
Is the process repeatable and rule-based?
Does it involve structured digital data?
Are errors or delays costing the business?
Is the process documented or documentable?
Does it currently consume >20 hours/month?

 Score 4 or more “Yes”? You’re ready.

 Final Thought

Automation isn’t just for the Fortune 500. For SMEs, it’s a cost-effective, scalable advantage—when done right.

At FhosLabs, we help you choose the right tools, automate the right processes, and deliver value fast.

FhosLabs – London-based AI & Automation Experts for Modern Businesses

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