Every software vendor we use is raising their prices and claiming they added new AI features. How do we evaluate whether these built-in software upgrades are actually driving efficiency or are just expensive marketing gimmicks?

Question

Tyler Smith · Accepted Answer

Software vendors are currently in an arms race to add the letters AI to their marketing materials, often using this hype to justify massive price increases. As an owner, you must cut through this theater and evaluate these upgrades with cold, hard numbers.

Before you agree to a price increase or pay for a premium AI add-on, put the vendor through a strict evaluation process.

- Identify the exact feature they are offering and map it to a specific task on your Accountability Chart. If the feature does not directly automate a step in your core processes, it is useless to you.

- Request a free trial of the upgraded feature for the specific employees who would use it. Do not rely on their polished sales demo; test it with your real company data.

- Measure the time saved. Have your team run the upgraded workflow and track the exact minutes saved per transaction compared to the old method.

Multiply those saved minutes by your team's hourly rate to calculate the actual labor cost reduction. If the monthly cost of the software upgrade is higher than the value of the time saved, reject the upgrade. Never pay for software capabilities that your team does not actively use to move the numbers on your weekly scorecard.