AI Investment ROI Model — Location-Adjusted Edition
Does the ROI case still hold once you price in where — and in what language — the AI actually runs?
The same AI Investment ROI Model, with deployment market, local currency, non-English inference cost, and true labour substitution economics priced in automatically. Built for teams deploying an AI programme outside a US/English-only context.
Delivered as an Excel workbook with an expanded PDF manual. Download immediately after purchase.
■ Instant download · ■ No macros · ■ Excel 2016+
A USD, English-only ROI model quietly overstates the case outside the US.
Non-English inference costs more per interaction, because non-English languages need more tokens per interaction than English does. And "the AI is obviously cheaper than the human" often stops being obviously true once the fully-loaded local labour cost is priced in rather than assumed. This edition prices both of these in automatically, instead of leaving them as a footnote to a business case built for a US/English-only deployment.
Five additions layered on the same core model.
The NPV, IRR, payback period, and BCR financial engine from the AI Investment ROI Model carries through to this edition. This edition adds a market and language layer on top of it.
- Substitution Ratio
- The ratio of the fully-loaded monthly cost of a human role to the actual monthly cost of the AI system replacing it — above 5:1 signals strong substitution economics, 2:1 to 5:1 is moderate, and below 2:1 is marginal.
- Blended Token Cost Multiplier
- A standard, editable multiplier applied to inference cost to account for non-English languages needing more tokens per interaction than English, blended across a primary and optional secondary language.
- Expansion Logic
- A business case built on revenue that is only reachable because of the AI system — new customer segments, long-tail demand, language inclusion, and extended-hours availability — rather than on labour substitution alone.
One number, three signals.
The Substitution Ratio divides the fully-loaded monthly cost of the human role being replaced by the actual monthly cost of running the AI system. The result determines which argument the business case should be built on.
Standard multipliers, editable per language.
Non-English languages need more tokens per interaction than English, which increases inference cost. These are the standard multipliers built into the model; every value is editable, and Custom is available for languages outside this list.
| Language | Multiplier |
|---|---|
| English | 1.0× (baseline) |
| Spanish (LatAm) | 1.3× |
| Bahasa | 1.8× |
| Arabic | 2.0× |
| Hindi | 2.0× |
| Bengali | 2.5× |
| Marathi | 2.5× |
| Tamil | 3.0× |
| Telugu | 3.0× |
| Gujarati | 3.0× |
| Custom | User-defined |
What's added over the base AI Investment ROI Model.
Both editions share the same NPV, IRR, payback period, and BCR core. The Location-Adjusted Edition adds a market and language layer on top of it.
| Capability | Base Edition | Location-Adjusted Edition |
|---|---|---|
| NPV / IRR / Payback / BCR core | ✓ Included | ✓ Included |
| Three-scenario modelling | ✓ Included | ✓ Included |
| Sensitivity analysis | ✓ Included | ✓ Included |
| Market Configuration tab | — | ✓ New |
| Deployment currency conversion | USD only | ✓ Local currency → USD |
| Substitution Ratio signal | — | ✓ New |
| Blended Token Cost Multiplier | — | ✓ New |
| Expansion Benefits Module | — | ✓ New (4 benefit lines) |
| Market context on Executive Summary | — | ✓ New |
Built for AI programmes that don't run in US/English-only conditions.
Build the ROI case for an AI programme deployed across multiple markets and languages, with currency and inference cost priced in rather than assumed.
Test labour substitution economics against the actual fully-loaded local cost of the roles under evaluation, not a US benchmark.
Build AI business cases for clients in India, Southeast Asia, the Middle East, or Latin America with a model built for those markets and languages from the start.
Same core as: the base AI Investment ROI Model — NPV, IRR, payback period, BCR, three scenarios, and sensitivity analysis, unchanged.
View Base Edition →Feeds into: approved funding then moves to staged governance gates via the AI Production Governance Toolkit.
View Governance Toolkit →Questions buyers ask before choosing an edition.
What does the Location-Adjusted Edition add to the base AI Investment ROI Model?
Five additions: a Market Configuration tab for deployment market and currency, a Substitution Ratio comparing human labour cost to AI running cost, a Blended Token Cost Multiplier for non-English languages, an Expansion Benefits Module for revenue only reachable because of the AI system, and expanded Market Context on the Executive Summary tab.
Does this edition replace the base AI Investment ROI Model?
No. The base edition remains on sale as-is. The Location-Adjusted Edition is a separate, additional edition for teams deploying an AI programme outside a US/English-only context, built on the same NPV, IRR, payback, and BCR core.
What is a Substitution Ratio in this model?
The Substitution Ratio compares the fully-loaded monthly cost of the human role being replaced against the actual monthly cost of running the AI system. Above 5:1 is strong substitution economics, 2:1 to 5:1 is moderate, and below 2:1 is marginal — in which case the model recommends building the business case on Expansion Logic rather than labour substitution alone.
How does the Blended Token Cost Multiplier work?
Non-English languages require more tokens per interaction, which increases inference cost. The model applies a standard, editable multiplier per language, blends a primary and optional secondary language, and feeds the result directly into the Cost Model so NPV, IRR, and ROI% recalculate automatically with no manual re-entry.
Can I override the standard language multiplier?
Yes. Every multiplier in the Blended Token Cost Multiplier table is editable, and a Custom option is available for languages or dialects outside the standard list.
What if my deployment market isn't in the standard list?
The Market Configuration tab includes a Custom option alongside India, Southeast Asia, Middle East, and Latin America. Custom lets you enter your own currency and USD exchange rate, which flows through the model the same way a standard market selection does.
AI Investment ROI Model — Location-Adjusted Edition
Market, currency, language, and true substitution economics priced in automatically — on the same NPV, IRR, payback, and BCR core as the base edition. $119.