What drives AI cost
AI cost depends on the pricing model (subscription vs API usage), volume (requests, text length, images/audio), and whether you run it inside automated workflows. A good estimate separates fixed vs variable costs.
Common cost buckets
- Subscription: monthly per user/team.
- Usage-based API: pay per tokens/requests/resources.
- Extra tooling: integrations, storage, logs, security.
- Implementation: setup time and ongoing maintenance.
How to estimate monthly spend
1) Define the use case
Writing, support, analysis, extraction, automation, etc.
2) Estimate volume
- Active users
- Daily requests
- Average input/output size
3) Add controls
- Rate limits and quotas
- Response length caps
- Cache repeated outputs
- 10–20% buffer early on
FAQ
Subscription or API?
Subscription for steady per-person usage. API for variable usage and workflow integrations.