The ROI of Specialized AI in Nursing Education: ICER, Budget Impact, and Equity

November 3, 2025

Ashley Morgan

The ROI of Specialized AI in Nursing Education: ICER, Budget Impact, and Equity

Purpose: Help deans, curriculum committees, and faculty quantify the return on investment (ROI) of adopting a specialized AI tutor across nursing courses - using University of Rochester study results and a practical cost-effectiveness (ICER) framework.

TL;DR key takeaways

  • University of Rochester research found GoodNurse users averaged 95.1% vs 88.8% for non-users (p = .0048).
  • A separate model comparison reported highest overall accuracy for GoodNurse on an 88-item exam and best accuracy per dollar among tested models.
  • Using the studies’ cost assumptions, the incremental cost-effectiveness ratio (ICER) was ≈ $5.80 per 1% grade improvement.
  • Programs of 30, 120, and 300 students can show positive budget impact when improvements reduce repeats and remediation time.
  • Pricing note: our consumer price is $9.99/student/month (B2C). Enterprise/semester pricing is not finalized; examples below show $9.99 × 3–4 months per semester as a placeholder and may change over time.
  • Background: see our companion piece, Independent University Research: GoodNurse Improves Outcomes and Learning Efficiency in Nursing Education.

1) What ICER means for nursing programs

ICER (Incremental Cost-Effectiveness Ratio) answers: How many dollars did we spend for one additional unit of outcome? ICER = (Cost_with_AI − Cost_without_AI) ÷ (Outcome_with_AI − Outcome_without_AI)

Outcomes can be:

  • Average course grade (percentage points).
  • % correct on a standardized exam
  • Progression/retention or repeat-course rates.

Why faculty like ICER: transparent, easy to recompute locally, and comparable to alternatives (extra lab hours, tutoring modules). For background, see CDC program evaluation and ICER basics (.gov) and NIH/NCBI overviews (.gov/.nih).


2) Using Rochester findings as your starting values

Standout result (for committee slides): “GoodNurse users averaged 95.1% vs 88.8% for non-users.” - University of Rochester School of Nursing (ENRS 2026 abstracts)

Evidence snapshot

  • Course performance: 95.1% (users) vs 88.8% (non-users), p = .0048.
  • Cost-effectiveness: Semester ICER ≈ $5.80 per 1% grade gain per student.
  • Model comparison: GoodNurse led overall accuracy on an 88-item exam and was most cost-effective among models tested.

Quick local ICER example: If your local lift is +5 points, ICER ≈ 5 × $5.80 = $29 per student for the gain (using the abstract’s cost basis). Departments can contrast that with the cost of extra lab hours, remediation, or private tutoring.

Integrity context: NCLEX explicitly restricts electronic devices at the test center; use AI for learning/practice, not graded assessments (see NCSBN and NCLEX links below).


3) Budget impact scenarios

Pricing disclaimer: Examples use $9.99 × 3 or 4 months to approximate a semester. Enterprise pricing is not finalized and may change over time. Other assumptions: average lift +5.0 points; avoided repeats 2–4%; faculty time saved 0.5–1.0 hr/student (triage to targeted practice); institutional cost per repeat $400 placeholder; faculty time $60/hr placeholder.

A) 30-student pilot section

Line item 3 months (29.97 ea) 4 months (39.96 ea) Notes
Semester access cost $899.10 $1,198.80 30 × monthly × months
Avoided repeats (2% → 0%) $240 saved $240 saved 0.6 student × $400
Faculty time saved (0.5 hr × 30 × $60/hr) $900 saved $900 saved Local rate
Net budget impact +$240.90 −$58.80 Savings − Cost

Many pilots still proceed at small net cost if outcomes and equity improve. Increasing avoided repeats to 3–4% or time saved to 1 hr/student typically makes pilots net positive even at 4 months.

B) 120-student, multi-section course

Line item 3 months 4 months Notes
Semester access cost $3,596.40 $4,795.20 120 × monthly × months
Avoided repeats (3% → 0.5%) $1,000 saved $1,000 saved ~3 students × $400 (rounded)
Faculty time saved (0.75 hr × 120 × $60/hr) $5,400 saved $5,400 saved
Net budget impact +$2,803.60 +$1,604.80 Savings − Cost

C) 300-student pre-licensure cohort

Line item 3 months 4 months Notes
Semester access cost $8,991.00 $11,988.00 300 × monthly × months
Avoided repeats (4% → 1%) $3,600 saved $3,600 saved 9 × $400
Faculty time saved (1 hr × 300 × $60/hr) $18,000 saved $18,000 saved
Net budget impact +$12,609.00 +$9,612.00 Savings − Cost

Swap in your local repeat-course cost, faculty rates, and observed lift. The ICER is independent of cohort size and remains your apples-to-apples yardstick.


4) Equity guardrails: who benefits, and by how much?

Track outcomes by:

  • Baseline GPA bands (e.g., ≤3.0 vs >3.0).
  • First-time vs repeaters.
  • Course format (in-person, hybrid, evening).
  • Clinical placement (telemetry, med-surg).

Equity dashboard checklist

  • Target lift: ≥3–5 points across lower GPA bands.
  • NGN performance: improved matrix/grid and bow-tie accuracy.
  • Early alert: flag low time-on-task by week 2 for outreach.
  • Accessibility: alt-text, keyboard navigation, sufficient color contrast for practice materials.

5) Integrity & compliance (NCLEX-aligned)

  • Allowed: AI for study, practice, and debrief.
  • Not allowed: AI on graded assessments unless explicitly permitted and proctored.
  • NCLEX: Electronic devices prohibited at the test center; candidates must demonstrate independent competence. See NCSBN and NCLEX policies below.

Further Reading (GoodNurse ecosystem)


References (.edu/.gov/.org)