Build a simple AI total-cost comparison that includes operating and risk-control costs.
Choose a sourcing path for an AI report-writing assistant used by 45 managers. The first comparison says vendor = $120,000 per year, internal build = $95,000 launch effort. TCO = direct spend + implementation + operating labor + risk controls + year-two maintenance or usage growth. The novice move is to compare subscription price with prototype cost. That ignores reviewer labor, monitoring, model changes, integration fixes, and the people who own cost after launch. Step 1 Add direct spend: vendor $120,000; build $38,000 model and infrastructure; hybrid $80,000 vendor drafting tier. Direct spend is visible, but it is not the…
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