Securing budget approval for AI initiatives requires a well-structured business case that clearly demonstrates value, addresses risks, and aligns with organizational goals. Kowalah’s Business Case template helps you create a comprehensive document that speaks to both technical and business stakeholders.

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Why You Need a Strong Business Case for AI

AI investments often face heightened scrutiny due to:

  • Perceived hype and uncertainty about outcomes
  • Concerns about implementation complexity
  • Questions about security, compliance, and ethics
  • Competition for limited resources
  • Lack of internal expertise to evaluate potential returns

A robust business case addresses these concerns by translating technical capabilities into business outcomes, quantifying benefits, and establishing a clear implementation path.

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Template Structure

Kowalah’s AI Business Case template includes these essential sections:

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Executive Summary

A concise overview highlighting:

  • The business problem being addressed
  • The proposed AI solution
  • Key benefits and expected outcomes
  • High-level cost overview
  • Strategic alignment with company objectives

This section helps executives quickly grasp the value proposition and importance of your AI initiative.

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Solution Description

A non-technical explanation of:

  • Your proposed AI solution(s)
  • Key capabilities and benefits
  • High-level requirements
  • Implementation considerations

This section bridges the gap between technical features and business value, making the solution understandable to all stakeholders.

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Problem Assessment

A clear articulation of:

  • Current challenges and limitations
  • Business metrics impacted by the status quo
  • External factors (regulatory, market, competitive) driving change
  • Connection to broader organizational objectives

This section establishes the “why now” and urgency by highlighting the cost of inaction.

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Impact Assessment

A detailed analysis of the current situation’s effects:

  • Tangible impacts (quantifiable costs, lost opportunities, inefficiencies)
  • Intangible impacts (customer experience, employee satisfaction, competitive positioning)

This section strengthens your case by demonstrating the full scope of the problem.

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Cost Overview

A comprehensive breakdown of:

  • Initial costs (licenses, hardware, implementation services)
  • Implementation costs (internal resources, training, integration)
  • Ongoing costs (subscriptions, maintenance, support)
  • Total Cost of Ownership (TCO) calculation
  • Return on Investment (ROI) projection

This section demonstrates financial responsibility and sets realistic expectations.

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Benefits Analysis

A thorough examination of expected gains:

  • Tangible benefits (cost savings, revenue increases, productivity improvements)
  • Intangible benefits (improved decision-making, enhanced customer experience)
  • Risk reduction (compliance, security, business continuity)
  • Strategic advantages (market positioning, innovation capability)

This section makes the case for “why this matters” to the organization.

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Initial Project Timeline

A high-level roadmap including:

  • Key milestones in the procurement and implementation process
  • Critical deadlines
  • Resource requirements
  • Success measurement points

This section shows thoughtful planning and establishes confidence in execution.

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Project Governance

A clear structure for project oversight:

  • Executive sponsor
  • Project owner
  • Core team members (by role and name)
  • Extended stakeholders

This section demonstrates organizational readiness and accountability.

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Tips for Creating an Effective AI Business Case

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How Kowalah Helps

Kowalah guides you through creating your business case by:

  1. Providing a structured template aligned with best practices
  2. Asking targeted questions to help you gather the right information
  3. Suggesting industry benchmarks when you don’t have specific data
  4. Helping translate technical features into business benefits
  5. Offering frameworks for estimating and quantifying both tangible and intangible benefits

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Example Business Case

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Next Steps

After completing your business case:

  1. Share it with key stakeholders for feedback and refinement
  2. Use it to guide your requirements gathering process
  3. Refer to it during vendor evaluation to ensure alignment with your objectives
  4. Update it as you learn more through your solution exploration process

Ready to create your AI business case? Start a new chat with Kowalah and select “Help me build a business case” from the suggested prompts.

Requirements Document Template

Ready to document your requirements list? Use our Requirements Document template to clarify what you need this solution to do.