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1.3.4. Cost Management
- Concept: AI services have usage-based pricing with multiple dimensions
- Purpose: Predict and control AI spending
- Benefit: Avoid unexpected bills, optimize for value
Key Cost Factors:
| Factor | Description | Optimization |
|---|---|---|
| Transaction volume | Per-call pricing | Batch requests where possible |
| Data processed | Per-character/image/minute | Filter unnecessary processing |
| Model type | GPT-4 > GPT-3.5-Turbo | Use appropriate model tier |
| Provisioned throughput | Reserved vs. pay-as-you-go | Reserve for predictable workloads |
Key Trade-Offs:
- Pay-as-you-go vs. Provisioned: PAYG offers flexibility but variable costs; provisioned offers predictability but commitment
- Model Capability vs. Cost: More capable models cost more; right-size to requirements
Reflection Question: Your AI application costs spike unexpectedly. What diagnostic data would you examine first, and what are three potential causes?