Value Assumptions

Portfolio uses the organization-wide inputs on Value Assumptions to estimate cost and value. Administrators and Business Owners with the required permission can update these inputs.

Labor costs

• Average employee hourly cost.
• Average time to review one decision manually.
• Average manual audit cost per engagement.

Application labor overrides

Applications inherit the organization’s hourly labor cost and manual review time unless an override is set. To review an application’s inputs, open Status → Business impact → Review labor assumptions.

The panel shows the effective values and whether each comes from tenant settings, an application override, or a default estimate. With value-assumption management permission, enter an override for either field. Leave a field blank to inherit it. Select Use organization defaults to remove both overrides. Access is limited to applications within your assigned scope.

For example, a tenant can use $75 per hour while an application reviewed by specialist counsel uses $200 per hour. If only the hourly rate is overridden, the application still inherits the tenant’s review time. Changing the tenant rate later updates applications that inherit it and preserves the counsel application’s override.

Operating value follows the same hourly-rate inheritance until you confirm a rate for a specific activity. That confirmed rate takes precedence. Later labor changes do not replace it or rewrite earlier operating estimates.

Portfolio labor value is the sum of the application calculations. Review time and hourly cost are applied to each application’s session volume. These are estimates of equivalent manual effort, not evidence of realized savings. Program budgets and manual audit costs remain tenant settings.

Program targets

Human-review cost estimates

The application labor panel separates recorded workflow expenses from estimated human-review labor for the selected period. Recorded expenses can include model, tool, validation, and other application-step costs. Only sessions that trigger human review receive a labor allowance. Fully automated sessions receive none, even when the application supports human review.

The estimate is: sessions with human review × review minutes ÷ 60 × hourly labor cost. For example, two reviewed sessions at 15 minutes and $200 per hour add $100 in estimated labor. Application overrides take precedence over inherited tenant values.

Each qualifying session receives one allowance, even if it contains several review steps. This is not measured reviewer time or payroll expense. The combined estimate adds this allowance to recorded workflow expenses. Developers must exclude the same review labor from step costs to avoid counting it twice. Changing current labor assumptions recalculates this estimate; it does not change recorded expenses.

Operating value investment

In an application’s Operating value assumptions, select an activity and expand Include program investment. Enter annual investment for that application, including its allocated share of common costs. Do not count the same cost twice.

Operating value uses these application investments for its optional net value, ROI, and payback comparison. It does not substitute the tenant’s AI program budget for an application’s investment. The portfolio comparison appears only when investment is recorded for every included application.

See Operating value for the calculation, recorded work, and confidence labels.

Portfolio targets

• Annual AI program budget.
• Target return on investment.
• Target annual savings.

Workforce baseline

• Full-time equivalents working on AI-related tasks.
• Decisions reviewed by one full-time equivalent per day.