AI Infrastructure Costs Demand Capital Expenditure Governance Controls

The Common Question

How should we budget and control rising AI infrastructure costs?

The Lesson in This Case

AI infrastructure costs are rising faster than most finance and technology budgets anticipated, and organizations without a deliberate cost governance model will find themselves absorbing expenses that were never approved. The companies pulling ahead are treating AI spend the way they treat capital expenditure – with staged investment gates, clear performance thresholds, and defined exit criteria before the next dollar flows. If your AI budget lacks those controls today, the shock the headline warns about is not coming – it is already building on your balance sheet.

Originally reported by Harvard Business Review. Read the full story here.