Resources

AI cost management (FinOps)

AI costs are scattered (per-user licences, pay-as-you-go API consumption, AI options charged as extras in existing software, projects), hard to forecast and rarely set against measured value. This pillar applies the four domains of the FinOps Framework — understand, quantify value, optimise, manage the practice — to an organisation that consumes AI without running its own platform.

General recommendations: the assessment selects those that match your situation and ranks them by priority.

AI spend visibility

The first step in FinOps: knowing how much AI costs, where, and who consumes it. In an organisation that consumes AI, spending hides in four places: per-user subscriptions, AI options in existing software, pay-as-you-go API consumption, and services. Individual subscriptions paid by card often escape all tracking.

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Budgeting, forecasting and alerts

AI costs are less predictable than traditional IT costs: pay-as-you-go consumption, adoption that suddenly takes off, price or model changes by the provider. The FinOps Framework recommends short forecasting windows, budgets per use and overspend alerts rather than a fixed annual budget.

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Value and unit economics

A cost only makes sense against what it produces. The FinOps Framework calls this unit economics: cost per resolved ticket, per processed case, per active user, per document produced. This is what lets you compare uses, stop those that deliver nothing and defend the budget of those that do.

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Rate and usage optimisation

Once spending is visible, it can be reduced: choose a model suited to the task (a smaller model is often ten times cheaper for an equivalent result), negotiate commitments, consolidate subscriptions, limit costly uses that add no value. The FinOps Framework distinguishes rate optimisation (paying less for the same thing) from usage optimisation (consuming less).

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AI procurement and spend governance

Who can commit AI spending, above what amount, with which approvals (security, legal, finance)? This topic connects finance with governance: the tool request process (Security pillar) must also be the budget process, otherwise one of the two will be bypassed.

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Frameworks

This pillar builds on the FinOps Foundation's FinOps Framework (CC BY 4.0), adapted to an organisation consuming AI services.

Where does your organisation stand?

The assessment evaluates these points for your organisation and ranks the actions by priority. Free, about 15 minutes, no account needed.

The other pillars