From Pilot Purgatory to Scale: Funding Models That Work

Many automation pilots succeed technically but fail to scale financially. The key is aligning funding models with risk, ownership, and long-term value.

1. The Problem

Pilots are often funded from innovation budgets — not operations. Once proven, they struggle to transition into capital planning.

2. Proven Funding Models

• CapEx + Opex Hybrid: amortize hardware, but budget software and AI updates as Opex.
• As-a-Service (RaaS/AIaaS): pay per production hour or per inspection.
• Co-funded Pilots: share cost with system integrators tied to performance KPIs.

3. Building for Scale

Define integration and cybersecurity costs from day one. Standardize interfaces (MQTT, OPC UA) to replicate success plant-to-plant.

Example

A global tier-2 supplier scaled an AMR pilot across six sites using a subscription model. ROI remained above 35% while CapEx stayed flat.

Related Articles

• Calculating Automation ROI in 2025: A CFO-Ready Model
• Payback Under a Year: Realistic Assumptions and Levers
• How to Present Your Automation Business Case to the Board

Conclusion

Pilots don’t fail — funding does. Tie budgets to measurable KPIs and structure financing for replication, not one-off success stories.