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COMPEL Glossary / total-cost-of-ownership-tco-ai

Total cost of ownership (TCO, AI)

Build + run + refresh + govern + retire cost across an AI feature's full life.

What this means in practice

AI-specific TCO adds token economics, retraining cost, guardrail-maintenance cost, and incident-response cost that classical IT TCO models underweight or miss. Required input to both business case and sunset decisions.

Synonyms

AI TCO , lifecycle cost of AI

See also

  • Unit economics — Cost and revenue per atomic unit — per transaction, per successful decision, per hour saved — for an AI feature.
  • FinOps for AI — The FinOps Foundation's Inform-Optimize-Operate lifecycle applied to AI workloads — visibility into AI spend, optimisation of token and compute costs, and operational discipline.
  • Compute budget (VDT) — A pre-agreed ceiling on training or inference compute per AI feature per period — expressed in tokens, FLOPs, or dollars.