The Real Cost of AI Development (And How to Budget It)
Four cost buckets
- Engineering time — still the largest line item.
- Model / API usage — predictable once you instrument it.
- Compute & infra — vector stores, GPUs (if any), hosting.
- Iteration — the budget teams forget; AI products improve by measuring and tuning.
Budget the iteration loop explicitly, or the project stalls after the demo.
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