A company's AI budget consists of one-off and recurring items. The one-off items include analysis and selection of the solution, integration with existing systems, data preparation and cleaning, and initial training. The recurring items include licences or usage-based payment, vendor support, the time of an internal administrator, and ongoing training. Companies most often underestimate data preparation and internal time, which does not appear in the budget even though it makes up a significant part of the actual cost. A sensible approach is to set aside a smaller amount for a pilot trial with a clear success criterion and to release the larger investment only afterwards. When comparing return on investment, it is the time saved, converted into the cost of labour, that is counted, not the vendor's estimate of the benefit.
See also: How much does an AI solution cost, AI tool pricing and tokens, Return on AI investment.
