Cost: The amount or equivalent paid or charged for something. https://www.merriam-webster.com/dictionary/cost

Automated: To apply the principles of automation to a mechanical process, industry, office, etc. . . http://www.dictionary.com/browse/automated

Reference Check: The process of getting information about a person from his/her previous employers, schools and other available sources. http://www.mbaskool.com/business-concepts/human-resources-hr-terms/16590-reference-check.html

Pretty simple by definition, not so simple by choice.

Additional Questions to ask to get the answer:

Is this a service or software solution?
Is the process truly automated, or is the process of calling references outsourced?
What do I have to do to initiate the service or solution?
How are references contacted?
Are there multiple methods being used to contact references or just a single method? www.reflynk.com
If only one method- what if it does not work?
How many attempts will the service or solution make on a candidate?
How long will it take to get results back to me?
In what format will the results be presented ?
Is the price: per candidate or subscription based? www.reflynk.com
Are reference questions customized to fit our company needs or standard by default?
Is this solution part of a bigger solution (ATS,HRIS) or a stand alone?
If stand alone, can the solutions be integrated into an ATS or HRIS such as ICIMS, Greenhouse, ProSky, JobVite etc…
Is the solution compliant with current HR standards and regulations? www.shrm.org

Many questions need to be addressed to simply reach this conclusion: The Cost of an Automated Reference Check is a fraction of the cost of a traditional reference check