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Launch2w ago

Rethinking Automation ROI: A New Framework for Agentic AI

AWS ML Blog2 min brief

In brief

  • Agentic automation-AI that can reason, adapt, and handle complex tasks-is gaining traction in businesses, but the way companies evaluate its value is outdated.
  • Traditionally, investments in automation are justified by calculating hours saved multiplied by labor costs minus build costs.
    • This model works well for rule-based tools like robotic process automation (RPA), which follow predictable, repetitive workflows.
  • However, agentic automation offers far more potential benefits, such as handling exceptions and reworking errors, that the old ROI formula fails to capture.
  • For example, while RPA might save time on routine tasks, agentic AI can also tackle unpredictable problems, reducing costs from human errors and rework.
  • McKinsey research highlights a pattern where companies investing in agentic technology spend $1 on the technology but $3 on process redesign and $5 on building capabilities and adoption.
    • This suggests that simply dropping an agent into an existing workflow won’t yield maximum returns-redesigning processes around the AI is key to unlocking its full value.
  • The future of automation ROI lies in measuring not just time saved but also how well freed capacity translates into actual business results.
  • Companies should focus on workflows where agents can handle both routine tasks and exceptions, ensuring that the real gains come from rethinking how work gets done, not just automating it as is.

Terms in this brief

Agentic automation
A type of AI that can reason, adapt, and handle complex tasks, unlike traditional rule-based tools. It's designed to solve unpredictable problems and improve processes beyond just saving time on repetitive tasks.

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