ROI Analysis of AI Video Monitoring: The Economic Value of Investing in Workplace Safety

36 trillion Korean won (approximately 26 billion US dollars) per year—that’s the estimated economic loss from industrial accidents in South Korea. How much of this loss can be prevented?

In an era of strict safety regulations, workplace safety has become a matter of business survival. In the first 4 parts of this blog series, we explored how Superb Video Analytics helps address safety challenges in manufacturing, construction, and shipbuilding environments.

The Economic Value of Workplace Safety Investment

How much does your company spend on safety? Compensation for industrial accidents, insurance premiums, personnel costs for safety management, legal expenses—these are just the tip of the iceberg.

The hidden costs can be even greater. Studies show that the indirect costs of an industrial accident—such as lost productivity, brand impact, talent turnover, and failed contracts—can be 4 to 6 times higher than the direct costs, which is why government estimates often value indirect losses at 4 times the direct losses. These indirect losses include lost work hours, reduced productivity, delivery delays, and other future liabilities stemming from workplace accidents.

In September 2024, National Assembly member Sohee Kim (of the Environment and Labor Committee) received data from the Ministry of Employment and Labor indicating that the estimated economic loss from industrial accidents in 2023 amounted to 36.42 trillion Korean won (approximately 26.3 billion US dollars). This represents a 21.5% increase compared to 2020, when the estimated loss was 29.98 trillion Korean won (approximately 21.7 billion US dollars). Cumulatively, over the past 4 and a half years, losses have reached a staggering 150.73 trillion Korean won (approximately 109 billion US dollars)—nearly one-quarter of the South Korean government’s 2024 national budget of 657 trillion Korean won (approximately 475 billion US dollars). [Source: Korea JoongAng Daily]

Since the enactment of the Serious Accident Punishment Act (SAPA) of South Korea, company owners and executives can face criminal charges when a major accident occurs, significantly increasing business risk. As such, today, safety management is no longer a discretionary expense—it is a strategic investment essential to business survival.

ROI Analysis of Superb Video Analytics

Adopting an AI-powered video monitoring & analytics system should not be seen as a cost, but as a long-term investment in workplace safety. Here’s a breakdown of the expected return on investment (ROI) when deploying this system in real industrial settings.

1. Direct Cost Reduction

Reduced Compensation and Medical Expenses

According to a 2018 study on the economic cost of industrial accidents (Park Chan-Im & Lee Hae-Choon), when a serious workplace accident results in the death of an employee, the average financial loss—including both direct and indirect costs—for the company amounts to 2 billion Korean won (approximately 1.45 million US dollars) per case. Even in general industrial accidents that do not fall under “serious accidents,” companies with 50 to 99 employees face an average loss of 7.71 million Korean won (approximately 5,600 US dollars) per incident. Preventing such incidents through AI video monitoring can significantly reduce these losses.

Avoidance of Legal Penalties

In South Korea, under the Serious Accident Punishment Act (SAPA), if business leaders fail to fulfill their duty to ensure workplace safety and a serious accident occurs, they may face a minimum of 1 year in prison or a fine of up to 1 billion Korean won (approximately 725,000 US dollars)—or both. For serious injuries or occupational illnesses, penalties include up to 7 years in prison or a fine of up to 100 million Korean won (approximately 72,500 US dollars) or both. Systematic safety management using AI video monitoring plays a crucial role in avoiding such legal risks.

Reduced Insurance Premiums

Under South Korea’s Industrial Accident Compensation Insurance Act, companies that demonstrate strong accident prevention efforts can receive premium discounts through a performance rating system. Businesses with 30 or more employees may receive up to 20% off their industrial accident insurance premiums, providing a financial incentive to invest in safety. For large-scale industrial sites that pay hundreds of millions to billions of won annually in premiums, structured prevention using AI video monitoring can translate to substantial cost savings.

2. Indirect Cost Reduction and Added Value

Improved Productivity

With a safety management system in place, workers can focus on their tasks without anxiety about safety, resulting in a 15–20% average increase in productivity. This improvement is even more pronounced in high-risk work environments.

Labor Optimization

Transitioning from labor-intensive safety monitoring to an AI-based system enables more efficient allocation of safety personnel. This not only reduces labor costs but also allows for strategic deployment of resources. In 24-hour operations, sites can reduce night-shift monitoring personnel by up to 90% while maintaining or even enhancing safety levels.

Prevention of Equipment and Facility Damage

Preventing accidents also protects valuable machinery and infrastructure. In manufacturing or shipbuilding, equipment damage can cost millions of dollars, so mitigating such risks can lead to significant financial benefits.

Minimized Downtime

In companies with 50 to 99 employees, the cost of accident response and recurrence prevention accounts for 47.3% of total accident-related losses, according to the same 2018 industrial accident study. By using Superb Video Analytics’ natural language video search, companies can reduce incident analysis time by up to 90%, enabling faster recovery and minimizing downtime.

3. New Business Values

Enhanced Brand Image and Reputation

Creating a safe work environment strengthens corporate social responsibility and improves brand image. This translates into real business value, such as talent acquisition, increased customer trust, and investor appeal. In today’s ESG-focused business climate, safety management is seen as a fundamental social obligation.

Attracting and Retaining Top Talent

A safe work environment is a critical factor in attracting and retaining skilled workers. This is especially important in sectors facing labor shortages and aging workforces, such as manufacturing, construction, and shipbuilding. One survey found that 82% of Gen Z job seekers consider a safe working environment an important factor when choosing a company to work for.

Ensuring Business Continuity

AI-driven safety systems help minimize operational disruptions caused by major accidents, ensuring business continuity. This is especially vital in construction or shipbuilding, where projects are big and delays can cause massive financial losses. Improving on-time delivery rates directly builds customer trust and plays a decisive role in securing long-term contracts.

Industry-Specific ROI Analysis: Real-World Scenarios

Let’s take a closer look at specific ROI scenarios when Superb Video Analytics is applied in different industrial settings.

Manufacturing

Here’s an example of the potential economic impact when a manufacturing facility with approximately 100 employees adopts Superb Video Analytics.

Initial Investment

• System implementation and installation cost (using existing CCTV): 36,000 US dollars
• Annual maintenance and operational cost: 7,200 US dollars

Estimated Annual Savings and Gains

• Reduced compensation payouts (assuming 50% reduction in accident rate):(72,500 US dollars
• Productivity improvement (assuming 15% productivity gain): 109,000 US dollars
• Efficiency gains in safety workforce operations: 50,800 US dollars
• Insurance premium reduction: 14,500 US dollars

ROI Analysis

• Net profit in the first year: 211,000 US dollars (ROI: approximately 580%)
• Payback period: 2 months
• Net Present Value (5 years, 5% discount rate): 870,000 US dollars
• Internal Rate of Return (IRR): 245%

What Sets Superb Video Analytics Apart?

Most traditional safety monitoring solutions in manufacturing can only detect predefined risk types and are limited in their ability to provide real-time responses. In facilities where diverse equipment and processes are constantly running in parallel, accuracy tends to drop significantly.

Superb Video Analytics offers:

• Instant detection of diverse hazards without prior training, powered by Superb AI’s proprietary vision foundation model
• Up to 80% reduction in initial investment by leveraging existing CCTV infrastructure
• 90% faster incident investigation through natural language video search
• Customized hazard detection and alert system tailored to specific production processes and site conditions

Construction

Here’s an example of the potential economic impact when Superb Video Analytics is deployed at a mid-sized construction site (project valued at approximately 36.3 million US dollars).

Initial Investment

• System implementation and installation cost: 72,500 US dollars
• Annual maintenance and operational cost: 14,500 US dollars

Estimated Annual Savings and Gains

• Reduced compensation payouts (assuming 70% reduction in high-risk accidents such as falls): 217,500 US dollars
• Reduced legal penalty risk: 362,500 US dollars
• Delay prevention (assuming a daily loss of 36,300 USD): 362,500 US dollars
• Efficiency gains in safety operations: 72,500 US dollars

ROI Analysis

• Net profit in the first year: 870,000 US dollars (ROI: approximately 1,200%)
• Payback period: 1 month
• Net Present Value (over the project period, 5% discount rate): 2.17 million US dollars
• Internal Rate of Return (IRR): 350%

What Sets Superb Video Analytics Apart?

Construction sites are dynamic and ever-changing. Traditional solutions struggle to adapt to these environments and often suffer from significant drops in accuracy due to external factors like weather and lighting.

Superb Video Analytics offers:

• Rapid deployment within 2 weeks, delivering immediate results
• Spatial intelligence through blueprint-camera mapping and smartphone footage, with no additional hardware required
• Risk detection models tailored to construction, focused on high-risk scenarios like falls and collisions
• High accuracy maintained even in adverse conditions, such as heavy rain or nighttime operations

Shipbuilding

Here’s an example of the potential economic impact when Superb Video Analytics is deployed at a large shipyard (annual revenue exceeding 725 million US dollars).

Initial Investment

• System implementation and installation cost: 217,500 US dollars
• Annual maintenance and operational cost: 36,000 US dollars

Estimated Annual Savings and Gains

• Reduced compensation payouts: 725,000 US dollars
• Reduced legal penalty risk: 1.45 million US dollars
• Prevention of equipment and facility damage: 1.09 million US dollars
• Productivity improvement: 2.17 million US dollars
• Delay prevention: 3.63 million US dollars

ROI Analysis

• Net profit in the first year: 8.7 million US dollars (ROI: approximately 4,000%)
• Payback period: 1 week
• Net Present Value (5 years, 5% discount rate): 32.6 million US dollars
• Internal Rate of Return (IRR): 750%

What Sets Superb Video Analytics Apart?

Traditional safety systems in shipyards can only detect predefined scenarios and often lose accuracy in complex environments. Retraining such models can take 3–6 months, making it difficult to respond quickly to evolving risks.

Superb Video Analytics offers:

• Instant detection of diverse hazards using Superb AI’s proprietary vision foundation model—no pretraining required
• Spatial intelligence through blueprint-camera mapping and smartphone footage—no LiDAR required
• 90% faster incident investigation with natural language video search
• Automated safety reports generated by AI agents

AI Video Analytics: A Strategic Investment, Not a Cost

In the era of strict safety regulations like the Serious Accident Punishment Act, workplace safety is no longer a “necessary evil”—it is a strategic investment. Over the past 4 and a half years, industrial accidents in South Korea have resulted in economic losses exceeding 150 trillion Korean won (approximately 109 billion US dollars), with 36 trillion Korean won (approximately 26 billion US dollars) lost annually. A significant portion of these losses can be prevented with Superb Video Analytics.

Superb Video Analytics not only helps organizations meet legal safety obligations—it is also the most effective way to maximize economic value. With advanced capabilities such as Detect-Anything-AI, natural language video search, spatial intelligence, and AI agents, the solution goes beyond the limitations of traditional safety systems and delivers new value.

Workplace safety is no longer optional—it’s essential. Superb AI provides a cutting-edge solution that empowers companies to achieve both safer operations and greater business value. Now is the time to bring the right AI video analytics solution to your worksites and build a safer, more sustainable future for your business.

Check your workplace safety using the safety management self-assessment checklist below and consult with Superb AI experts.

Safety Management Self-Assessment Checklist

Use the checklist below to evaluate your current level of safety management. Answer each item with “Yes” or “No.”

1. Is a real-time safety monitoring system operating 24/7 at your facility?
2. Does your system automatically detect whether workers are wearing safety gear?
3. Can you identify the exact situation and location of an incident within 15 minutes?
4. Have you systematically stored all safety-related data from the past 1 year?
5. Can you easily provide legal documentation proving compliance with safety regulations of your region?

If you answered “No” to two or more questions, your current safety management system may fall short of today’s stricter legal requirements. To address this risk, contact us now to request your [customized safety management consultation].