AI Productivity Dividend
Illustrative model — your assumptions, transparently shown
Formula
Hours recovered (month m) = Σ tiers (people × hours saved per week × adoption(m) × 4.33)
Value = hours × loaded hourly cost · Net = value − tooling cost · Payback = first month cumulative net > 0
Adoption follows an S-curve from the month 1 % to the month 12 %. 4.33 = average weeks per month.
Assumptions by tier
Tier 1 Personal productivity
Drafting, summarising
Hours saved / person / week3
Tier 2 Team workflows
Incident / problem / change write-ups
Hours saved / person / week3.5
Tier 3 Knowledge capture
Runbooks, KT
Hours saved / person / week2
Tier 4 Service outcomes
MTTR and toil reduction
Hours saved / person / week1.5
Tier 5 Strategic capacity
Hours redeployed to engineering and resilience
Hours saved / person / week1
Results
Monthly hours (month 12)
961
Annual hours recovered
7,209
Annual value
$744,000
Annual net
$698,400
Annual tooling cost
$45,600
Payback month
Month 1
Hours recovered are capacity, not automatic cash savings.