AI Economics
What AI actually costs once it reaches production
AI costs extend far beyond licenses and model usage. A defensible view includes consumption, infrastructure, human review, and the operational work required to keep systems useful.
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AI Economics
Cost, licensing, consumption, and the measurement methods that make AI spend defensible.
AI Economics
Token optimization is not about buying the cheapest model
Lower model prices do not guarantee lower operating costs. The best optimization decisions account for the whole workflow, including retries, review, and output quality.
AI Economics
How to control AI usage and spend across the enterprise
AI spending becomes difficult to manage when licenses, APIs, agents, and cloud consumption are owned in different places. Control starts with one inventory and clear accountability.
AI Economics
Model routing: match the model to the work
One default model is simple, but rarely economical. Model routing assigns each task to the least costly option that can meet its quality and risk requirements.
AI Economics
The hidden cost of human review in AI workflows
Human review is often necessary, but rarely included in AI cost reports. Measuring it reveals whether automation is removing work or simply moving it.
AI Economics
License utilization is not AI value
Utilization can reveal waste, but it cannot prove value. Leaders need to connect licenses to repeated workflow use and the operating result that use is meant to change.
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