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Retry questionGenAI Roll-out
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To size the opportunity, we’d like to estimate the potential productivity impact of the GenAI copilot. The pilot was rolled out to 100 underwriters across 5 regional offices. The client believes that, if scaled, GenAI could cut underwriting time by 20–30% on average.
Assume the following:
- There are 5,000 total underwriters across the country.
- On average, underwriters process 1.5 applications per day.
- The average labor cost per underwriter is $120,000/year.
- There are 250 working days per year.
What is the potential annual cost savings from scaling the GenAI tool nationally?
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Sample answer from an expert consultant
Step 1: Calculate labor cost savings per underwriter
- Labor cost = $120,000/year
- 20–30% productivity increase implies the same output in 70–80% of time → savings = 20–30% of cost
- That’s $24,000–$36,000 per underwriter
Step 2: Multiply by total underwriters
- Total = 5,000 underwriters
- Total savings = 5,000 × $24,000 → $120M (low end)
- Total savings = 5,000 × $36,000 → $180M (high end)
Conclusion:
If productivity gains scale linearly, the client could save $120M–$180M annually in labor costs by rolling out GenAI to all 5,000 underwriters.
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