We take a look beyond the “naïve” idea of cost savings through AI employees, exploring the long-term gains.
In our journey exploring the role of AI co-workers in organisations, it becomes worthwhile exploring the value that these seamlessly integrated virtual team members offer far beyond mere cost savings. While reducing human headcount may appear as an obvious benefit, the real impact of AI co-workers is in boosting productivity, creating “unfair” competitive advantages, and improving employee satisfaction & growth. Below is an attempt to break down on how to evaluate the comprehensive value AI co-workers bring to the table.
The most straightforward metric for assessing the value of AI co-workers is cost savings. By having an AI co-worker take on tasks previously handled by humans, companies can reduce or repurpose roles without sacrificing productivity. For many businesses, this translates to a reduction in payroll costs, often measured by the number of full-time employees no longer required (i.e. leaver’s positions not being refilled) or by the slowed rate of hiring new staff. We call this approach “naive,” as it only scratches the surface of what AI co-workers can achieve.
AI co-workers don’t just replace human employees; they amplify productivity in ways that are difficult for human teams to match. Below are a few ways AI co-workers drive productivity (examples):
The productivity gains from these capabilities are exponential. An AI co-worker can handle large volumes of repetitive tasks with consistency, significantly freeing up human employees to focus on more strategic work. This results in improved efficiency, faster project completion, and less operational downtime. Measurements include the number of tasks (internal) and interactions (external) completed, the number of “non-productive” human work hours saved, task completion times, etc.
Beyond productivity, AI co-workers contribute strategically to an organization, creating a competitive edge that can drive growth and profitability. We use business development as an illustrative example below:
These strategic gains go beyond traditional productivity and directly impact an organisation’s top (and bottom) line, helping create sustainable growth by enhancing core business functions and relationships.
Given the above one may be tempted to overlook a significant organisational benefit of AI co-workers: their positive impact on human employee satisfaction. By taking over mundane, repetitive tasks (studies assume an average of ~2/3 of tasks), AI co-workers allow human team members to engage in more meaningful work, like business and product development, R&D and their individual personal growth.
Studies show that employees who spend less time on repetitive tasks and more time on creative and impactful work report higher job satisfaction. This shift not only improves retention rates but also attracts talent eager to work in innovative, AI-integrated environments. When employees are freed from repetitive work, they can focus on strategic thinking and foster their skills and decision-making capabilities, leading to a more motivated and engaged workforce.
While cost savings are an easy metric to point to, they represent a limited perspective on the value of AI co-workers. The real benefit lies in their ability to amplify productivity, provide competitive advantages, and enhance employee satisfaction and development. Companies focusing solely on cost reduction miss the more significant impact and value creation these AI employees will produce. Furthermore, it may lead to increased organisational inertia and adoption resistance.
The businesses that thrive will be those that recognize AI co-workers as an investment in efficiency, strategy, and employee well-being, rather than just a way to reduce payroll.