- AI spend is growing faster than governance while being fragmented across business units, leading to IT owning the overspend.
- Teams typically only learn which project drove the spend once the invoice arrives, not at the moment it happens.
- 94% of IT decision-makers struggle to manage cloud and AI costs, with no clear model for who owns AI spend across FinOps, ITFM, and procurement.
Our Advice
Critical Insight
- Treat AI spend management as a governance exercise, not an accounting exercise. You are driving accountability and ultimately better value management for your AI investments.
- AI spend is fragmented by design, living across IT, Finance, Procurement, and business teams. Naming one accountable owner and agreeing on who approves spend before you touch the data is what turns a one-time audit into a repeatable governance habit.
- You can't manage what you can't compare. Normalizing every vendor's pricing, whether tokens, seats, or GPU hours, into one taxonomy and attributing each dollar to an owner and project turns raw invoices into decision-ready data. Aim for 80% coverage, not perfection.
- The key to successfully establishing end-to-end visibility over AI spend involves aligning stakeholders early in the process. Establishing a single source of truth for AI spend data at the start helps avoid surprise costs, duplicated tools, and untracked shadow AI.
Impact and Result
- Establish end-to-end visibility over AI spend, built on a three-phase cycle: Surface, Clean, and Present
- Surface every dollar from vendor consoles and invoices and allocate spending to clear owners, clean and analyze your spend data, then track variance and spend drivers to build a defensible view of value.
- A ready-to-use workbook will guide you through transforming raw admin console data into an insights to build board-ready executive deck.
Create a Transparent and Defensible IT Budget
Take a Holistic Approach to IT Financial Management
Increase Grant Application Success
Manage an IT Budget
Establish a Service-Based Costing Model
Implement an IT Chargeback System
Build Your IT Cost Optimization Roadmap
Take Control of Cloud Costs on AWS
Take Control of Cloud Costs on Microsoft Azure
Cost-Reduction Planning for IT Vendors
Start Making Data-Driven People Decisions
Maximize Your American Rescue Plan Funding
Achieve IT Spend & Staffing Transparency
Develop a Flexible IT Funding Model
Develop Your IT Leadership Team’s Financial Literacy
Adopt a World-Class ITFM Taxonomy
Implement an Adaptive System for IT Financial Management
IT Spend and Staffing Benchmarking: Realign Resources for Success
Stop Wasting Time Evaluating Commoditized Products and Services
Build an ITFM Improvement Roadmap
IT Spend and Staffing Benchmarking
Adapt to Uncertainty: Optimize Your Top Areas of IT Spend
Invest in Realistic and Comprehensive Project Costing
Demonstrate IT Value Through ITFM Reporting
Establish End-to-End Visibility Over AI Spend