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An AI business case template a UK SME board can approve in one meeting.

By Zain M · 30 September 2026 · 11 min read

An AI business case a UK SME board can approve fits on one page and has eight sections: the process and its measured baseline; the outcome in numbers; the option proposed and the two rejected, including buying off the shelf and doing nothing; the fixed price and the monthly running cost; the data and regulatory position; the risks and the controls; the 90-day measure; and the decision being asked for. It fails when it describes possibilities without prices, when the baseline is estimated rather than measured, or when the running cost is missing. The template below is written to be filled in as it stands.

LengthOne page, eight sections
Must includeMeasured baseline and running cost
Ends withA decision, not a discussion

Why most AI business cases are turned down, or should be

The published evidence describes what a weak case looks like. Gartner names unclear business value, escalating costs, poor data quality and inadequate risk controls as the four causes of abandonment. DSIT found 60 per cent of UK businesses cite limited AI skills as a barrier. The ONS found 62 per cent of firms citing an expertise gap are training their own staff rather than hiring help. Each of those is a section a board will ask about, and a case that has no answer for one of them is a case that gets deferred.

The other failure is length. A twelve-page case is read by nobody and approved by the person who wrote it. One page, with the numbers, is read by everyone and argued with, which is what approval looks like.

The template

Replace the bracketed items. Keep the headings.

011. The process. [Name it.] [Volume per month.] Currently [hours per unit] across [who touches it], [time from arrival to first action], [rework rate], measured over [dates]. Cost per unit [£] at a loaded rate of [£ an hour]. Monthly cost [£].
022. The outcome. After automation: [hours per unit], [time to first action], [rework rate]. Monthly cost [£] including an AI running cost of [£] per month. Monthly saving [£]. Annualised [£].
033. The options. (a) Do nothing: the monthly cost above continues and [what gets worse]. (b) Buy off the shelf: [product], [licence cost], covers [what] and does not cover [what]. (c) Workflow tool: [n8n, Make or Zapier], covers [what], breaks at [volume or data handling]. (d) Proposed: [custom build or implementation], because [the specific reason the others fall short].
044. The price. Fixed price [£] against a written scope, with [what is not included]. Running cost [£ per month] at current provider prices, attributed per feature, with spending ceilings enforced. Payback [months].
055. Data and rules. Data involved: [what]. Provider and region: [who, where]. Lawful basis: [which]. DPIA: [needed or not, and why]. Contract: [DPA in place]. A person decides anything that affects a customer or an individual.
066. Risks and controls. Quality: [acceptance threshold as a number, measured how]. Cost: [ceiling, tested in production]. Failure: [what happens when it breaks, who is paged]. Dependence: [code, accounts and credentials in our name; runbook at handover].
077. The 90-day measure. Baseline measured [dates]. Live from [date]. Weekly measurement of the four metrics. Decision meeting on [date]: extend, change or stop.
088. The decision. Approve [£ fixed price] and [£ per month running cost] for [the process], with the decision point on [date]. Owner: [name].

How to fill in section one honestly

The baseline is the section that decides the case, and it cannot be estimated from memory. Count the units for two weeks. Ask everyone who touches one how long they spend, then watch a few to check. Record arrival-to-action from the timestamps you already have in the inbox or the system. Count the ones that had to be redone. Multiply hours by a loaded rate that includes employer costs, not the salary alone. Our 90-day ROI guide sets out the method and a worked example, and the readiness audit exists to do this measurement for firms that would rather it was done for them.

How to fill in section four without a quote in hand

Use the published UK ranges and say so. Our own prices, which are fixed against a written scope, are £2,500 to £6,000 for an adoption audit credited against a build, £4,000 to £15,000 for a first implementation, £8,000 to £25,000 for a custom AI system and £8,000 to £30,000 per phase for an application. Published UK market ranges surveyed in our cost guides sit around those bands, with day-rate suppliers higher and less predictable. The running cost is the line most cases omit: at September 2026 prices a small model costs a fraction of a penny per typical document and a text message costs more than the model behind it, so budget the channels, not the tokens. Our running-cost guide gives the arithmetic.

How to fill in sections five and six so the board stops asking

Section five is the ICO’s expectations in four lines: the data, the provider and region, the lawful basis, and whether a DPIA is needed, which it is where the processing is likely to be high risk under the ICO’s screening criteria. A business plan of the AI tool, a data processing agreement and a written policy answer most of it. Section six is the four Gartner causes turned into controls: an acceptance threshold as a number, a cost ceiling that has been watched firing, a defined failure path, and ownership of the code and accounts so the firm is never dependent on the supplier. A board that sees those six lines has seen a firm that has done the thinking.

Common questions

What should an AI business case include?

The process and its measured baseline, the outcome in numbers, the options considered including doing nothing and buying off the shelf, the fixed price and running cost, the data and regulatory position, risks and controls, a 90-day measure, and the decision being asked for. One page.

How do I calculate the return in the business case?

Hours per unit times a loaded hourly rate, before and after, on one measured process, minus the build cost and the AI running cost per month. Measure the baseline for two weeks before the build; do not estimate it.

Why do AI business cases get rejected?

Estimated baselines, missing running costs, no acceptance threshold, and no answer on data and risk. Gartner’s four causes of abandonment are the four questions a board asks; the template answers each.

Should the business case consider off-the-shelf software?

Always, as a named option with its licence cost and what it does not cover. A case that only considers the custom build looks like a sales document, because it is one.

How much does a first AI project cost a UK SME?

At fixed-price suppliers, £4,000 to £15,000 for a first implementation and £8,000 to £25,000 for a custom system, with an audit at £2,500 to £6,000 credited against the build. Published UK ranges are in our cost guides.

Who should own the AI business case?

The person who owns the process being automated, not IT and not the supplier. The 90-day decision meeting is theirs.

Want the case written from measured numbers?

The AI adoption audit produces the baseline, the ranked options with prices and running costs, and the data position, in the shape a board approves.

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