#ai token costs

Every few years, some new technology comes along that promises to revolutionize how we do business, and enterprises pile in headfirst without asking how much it’s going to cost. I’ve been watching this movie for 30 years. Cloud computing was the first act. Now it’s generative AI, and the bill is arriving faster than anyone expected. The latest data shows that many enterprises are seeing their AI token costs run 10 to 20 times higher than initial projections. That’s not a rounding error. That’s a strategic miscalculation that CFOs are starting to notice, and they’re not happy about it. Here’s the thing: This crisis was entirely predictable. We’ve been through this before with cloud computing, and we learned some hard lessons about what happens when you deploy technology without rigorous cost management. The good news is that enterprises are finally applying those lessons, reaching back to their cloud finops playbooks to wrangle this new breed of spending. The 50x problem Let me explain