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Glossary entry

AI TCO

The total cost of owning and operating an AI capability across model access, infrastructure, data, governance, integration, and support.

Why it matters

AI TCO matters because the model price alone rarely explains the real economic burden of enterprise AI, especially once production controls and operating overhead are included.

AI TCO is most useful when it helps leaders see the difference between a promising pilot cost and the full production cost of a dependable, governed, enterprise-grade capability.